Clause 6

by deleting subsection (1) and substituting the following subsections:“(1) This section applies where —

a supply of distantly taxable goods is —

made to a person (called in this section the recipient) who —

belongs in Singapore;

is a registered person, or is not a registered person but is liable to be registered under paragraph 1 or 1B of the First Schedule; and

is not receiving the goods as an individual in the private or personal capacity of the individual; or

made by a branch of a person in a country other than Singapore through which the person carries on any business, and made to a branch of the person in Singapore through which the person (also called in this section the recipient) carries on any business; or

a supply of services is —

made by a person who belongs in a country other than Singapore, and made to a person (also called in this section the recipient) who —

belongs in Singapore;

is a registered person, or is not a registered person but is liable to be registered under paragraph 1 or 1B of the First Schedule; and

is not receiving the services as an individual in the private or personal capacity of the individual; or

made by a branch of a person in a country other than Singapore through which the person carries on any business, and made to a branch of the person in Singapore through which the person (also called in this section the recipient) carries on any business,and the recipient is not entitled to credit for the full amount of the recipient’s input tax under sections 19 and 20 for the prescribed accounting period, or longer period mentioned in section 20(4)(b), in which the distantly taxable goods or services are received.(1AA) In addition, where one or more persons (each Y) other than the recipient (X) mentioned in subsection (1) to whom the supply is made, directly benefit from the distantly taxable goods or services, and any Y —

satisfies the criteria of the recipient in subsection (1)(a)(i) or (b)(i), as the case may be; and

is not entitled to credit for the full amount of the input tax under sections 19 and 20 for the prescribed accounting period, or longer period mentioned in section 20(4)(b), in which the distantly taxable goods or services are received,then —

that Y is treated as a recipient to whom the supply of distantly taxable goods or services is made for the purpose of this section, to the extent of the consideration paid to the supplier (whether directly or indirectly) by that Y for the supply; and

X is the recipient only to the extent of the consideration not paid by any Y.”;

by deleting the words “Subsection (1)(b)” in subsection (1A) and substituting the words “The condition in subsections (1) and (1AA) that the recipient is not entitled to credit for the full amount of the recipient’s input tax”;

by inserting, immediately after subsection (1A), the following subsection:“(1B) For the purposes of this section, in determining whether goods are distantly taxable goods, if the recipient is unable to verify the location of the goods at the point of sale of the goods, or the manner or mode of transport by which the goods will be delivered to a place in the customs territory, the recipient may rely on the best available information to do so.”;

by inserting, immediately after the words “subsections (3)” in subsection (2), “, (3A)”;

by deleting the word “service” in subsection (2) and substituting the words “goods or services”;

by deleting subsection (3) and substituting the following subsection:“(3) Subsection (2) applies —

in the case of distantly taxable goods — only to the extent that the goods are not excluded under the Eighth Schedule (for the purposes of subsection (1)(a)(i) and (ii), or (1)(a)(i), or (1)(a)(ii), as the case may be); and

in the case of services — only to the extent that the services are not excluded under the Eighth Schedule (for the purposes of subsection (1)(b)(i) and (ii), or (1)(b)(i), or (1)(b)(ii), as the case may be).”;

by inserting, immediately after subsection (3), the following subsection:“(3A) Subsection (2) does not apply to the extent that the recipient pays an amount as tax or as reimbursement for tax —

on the supply of the goods or services in fact made to the recipient even though the supply was not chargeable to tax under section 8(1A); or

on the importation of the goods pursuant to section 8(4) as if they were not distantly taxable goods,as the case may be.”;

by deleting subsections (5) and (6) and substituting the following subsections:“(5) Despite a recipient being entitled to credit for the full amount of the recipient’s input tax under sections 19 and 20 for the prescribed accounting period, or longer period mentioned in section 20(4)(b), in which distantly taxable goods or services are received, the recipient may elect for all supplies made to the recipient in the circumstances under subsection (1)(a) or (b) in that period to be treated as supplies of distantly taxable goods or services to which subsection (2) applies.(6) Where a recipient who is a registered person receives any supply of distantly taxable goods or services mentioned in subsection (1)(a) or (b) (as the case may be) that is excluded or to any extent excluded under the Eighth Schedule, the recipient may elect for all such supplies of distantly taxable goods or services to be made to the recipient to be treated as supplies of distantly taxable goods or services to which subsection (2) applies (and not supplies of distantly taxable goods or services to which subsection (2) does not apply by reason of subsection (3)).”; and

by deleting the words “despite subsection (1)(a)(ii) and (b) being satisfied” in subsection (9) and substituting the words “to any supply made in the circumstances in subsection (1)(a)(ii) or (b)(ii) (as the case may be) where the recipient is not entitled to credit for the full amount of the recipient’s input tax as mentioned in subsection (1)”.