Schedule 7 · Supplies for the purposes of section 8(1A)

SEVENTH SCHEDULESections 2(1) and 46(1B)Supplies for the purposes of section 8(1A)General[Act 34 of 2021 wef 01/01/2022]Definitions1.—

In this Schedule —[Deleted by Act 34 of 2021 wef 01/01/2022]“electronic marketplace” means a medium that —

allows suppliers to make supplies available to customers by electronic means; and

is operated by electronic means,but not any medium that is solely for processing any payment for any supply;[Deleted by Act 34 of 2021 wef 01/01/2022][Deleted by Act 34 of 2021 wef 01/01/2022]“local underlying supplier”, in relation to a supply of distantly taxable goods or remote services, means a supplier of the goods or services that belongs in Singapore and makes the supply through an electronic marketplace;[Act 34 of 2021 wef 01/01/2022]“overseas underlying supplier”, in relation to a supply of distantly taxable goods or remote services, means a supplier of the goods or services that belongs in a country other than Singapore and makes the supply through an electronic marketplace;[Act 34 of 2021 wef 01/01/2022]“redeliverer”, in relation to a supply of goods, means a person who, under an arrangement with the person (X) to whom the supply is made or any person acting on X’s behalf, delivers the goods from outside the customs territory to a place in the customs territory, or arranges or assists in such delivery, and does one or more of the following:

provides the use of an address outside the customs territory to which the goods are delivered;

arranges or assists in the use of an address outside the customs territory to which the goods are delivered;

purchases the goods outside the customs territory as an agent of X or a person acting on X’s behalf;

arranges or assists in the purchase of the goods outside the customs territory; [Act 34 of 2021 wef 01/01/2022]“underlying supplier”, in relation to a supply of distantly taxable goods or remote services, means a supplier of the goods or services that makes the supply through an electronic marketplace.[Act 34 of 2021 wef 01/01/2022]

To avoid doubt, in this Schedule, a person that is only the Internet service provider for an electronic marketplace, is not an operator of the electronic marketplace.Meaning of “customer”2.—

Subject to sub-paragraph (2), for the purposes of this Schedule, where a supply of goods or services is a Seventh Schedule supply, then the person to whom the supply is made is the customer in relation to the supply, but not if the person —

is registered under this Act; and

receives the supply in the course or furtherance of any business carried on by the person.

In addition, where the supplier knows that any one or more persons (each Y) other than the person (X) described as the customer in sub‑paragraph (1) directly benefit from the goods or services, and that any Y —

is not registered under this Act; or

does not receive the supply in the course or furtherance of any business carried on by that Y,then the supplier must treat that Y as if Y is a customer for the purposes of this Act to the extent of the consideration paid to the supplier by that Y for the goods or services, and X is the customer only to the extent of the consideration not paid to the supplier by any Y.

For the purposes of sub-paragraph (2), a supplier is not taken to know that the goods or services directly benefit any person by virtue only of the fact that any part of the consideration for the supply is paid by that person to the supplier.[Act 34 of 2021 wef 01/01/2022]Meaning of “remote services”2A. For the purposes of this Schedule, “remote services” means any services where, at the time of the performance of the services, there is no necessary connection between —

the place where the services are physically performed; and

the location of the customer of the services,but does not include any of the following:

any services the supply of which, if made by a taxable person in Singapore, would be an exempt supply under section 22 and the Fourth Schedule;

any services the supply of which, if made by a taxable person in Singapore, would be a supply of international services which is zero‑rated under section 21(1);

any services supplied by a government of a country other than Singapore which would, if made by a public agency mentioned in section 28, be a supply prescribed under section 28(2A).[Act 34 of 2021 wef 01/01/2022][Act 14 of 2024 wef 30/04/2024]Supplies for purposes of section 8(1A)3.—

For the purpose of section 8(1A), the supply of goods or services is any of the following:

a supply of remote services made or treated as made in the circumstances in sub‑paragraph (2);[Act 34 of 2021 wef 01/01/2022]

a supply of services other than remote services (called in this paragraph non‑remote services), made in the circumstances in sub‑paragraph (3);[Act 34 of 2021 wef 01/01/2022]

subject to paragraph 4A —

a supply of distantly taxable goods made or treated as made in the circumstances in sub‑paragraph (3A); or

a supply of goods made in the circumstances in sub‑paragraph (3A), where the goods are allowed to be treated as distantly taxable goods under paragraph 4C,but not if the goods are treated under section 13(2) as being supplied in Singapore.[Act 34 of 2021 wef 01/01/2022][Act 35 of 2022 wef 01/01/2022]

[Deleted by Act 35 of 2022 wef 01/01/2022]

The circumstances for a supply of remote services are any of the following:

the supply is made to a customer who belongs in Singapore, and the taxable person belongs in a country other than Singapore;

the supply is made to a customer who belongs in Singapore, and the taxable person is —

an overseas underlying supplier; or

the operator of an electronic marketplace treated under paragraph 4 as making the supply instead of an overseas underlying supplier;

the supply is a supply mentioned in paragraph 5(3)(b) or 6(2)(b).[Act 34 of 2021 wef 01/01/2022]

The circumstances for a supply of non-remote services are —

the supplier makes or is treated as making a supply of remote services in any of the circumstances in sub‑paragraph (2);[Act 34 of 2021 wef 01/01/2022]

in the course of making the supply of remote services, the supplier makes a separate supply of non-remote services and that would, but for this sub‑paragraph, not be chargeable to tax;[Act 34 of 2021 wef 01/01/2022]

the supply of non-remote services is ancillary to the supply of remote services; and[Act 34 of 2021 wef 01/01/2022]

upon an application by the supplier, the Comptroller notifies the supplier that the Comptroller is satisfied that the supply of non-remote services is within sub‑paragraphs (b) and (c).[Act 34 of 2021 wef 01/01/2022]

The circumstances for a supply of distantly taxable goods are any of the following:

the supply is made to a customer, and the taxable person delivers the goods to a place in the customs territory, or arranges or assists in such delivery;

the supply is made to a customer, and the taxable person —

is any of the following:

an underlying supplier;

the operator of an electronic marketplace treated under paragraph 4 as making the supply instead of an underlying supplier;

the redeliverer treated under paragraph 4B as making the supply instead of the supplier, underlying supplier or operator of an electronic marketplace; and

delivers the goods to a place in the customs territory, or arranges or assists in such delivery.[Act 34 of 2021 wef 01/01/2022]

A supplier of distantly taxable goods, remote services or non-remote services under this paragraph must treat a person to whom any such goods or services are supplied as not being registered under this Act, unless the person provides to the supplier the registration number allocated by the Comptroller to the person upon the registration of the person under this Act.[Act 34 of 2021 wef 01/01/2022]

If distantly taxable goods are part of a supply that includes goods that are not distantly taxable goods, the distantly taxable goods and those other goods are treated as separately supplied.[Act 34 of 2021 wef 01/01/2022]Supply treated as that of operator of electronic marketplace4.—

For the purpose of paragraph 3(2)(b)(ii) and (3A)(b)(i)(B), an operator of an electronic marketplace is treated as making the supply of distantly taxable goods or remote services to a customer instead of the underlying supplier making the supply through the electronic marketplace of the operator, if any of the following conditions is satisfied:

the operator authorises the consideration for the supply to be charged to the customer;

the operator authorises the delivery of the supply to the customer;

the operator sets the terms and conditions under which the supply is made;

the documentation provided to the customer identifies the supply as being made by the operator;

the operator and the underlying supplier have agreed in writing that the operator is chargeable to tax on such supply.[Act 34 of 2021 wef 01/01/2022]

If more than one operator of an electronic marketplace is treated under sub-paragraph (1) as making the supply of distantly taxable goods or remote services —

the first operator that authorises the charging of or receives consideration for the supply is treated as making the supply; and

if no operator exists that meets the requirement in sub-paragraph (a), then the first operator that authorises delivery of the supply is treated as making the supply.[Act 34 of 2021 wef 01/01/2022]

For the purposes of this paragraph —

an operator authorises the charging of consideration for a supply of distantly taxable goods or remote services where it influences whether, at what time, or under which preconditions the customer can make payment for the supply of distantly taxable goods or remote services; [Act 34 of 2021 wef 01/01/2022]

an operator authorises the delivery of a supply of distantly taxable goods or remote services where it influences whether, at what time, or under which preconditions the delivery is made; and[Act 34 of 2021 wef 01/01/2022]

an operator sets the terms and conditions under which the supply is made where it influences —

any rights and obligations linked to the supply; or

the preconditions under which the medium through which supplies are made available to customers is used.[Act 34 of 2021 wef 01/01/2022]

This paragraph applies whether or not the operator of the electronic marketplace is a supplier of distantly taxable goods or remote services that belongs in Singapore.[Act 34 of 2021 wef 01/01/2022]

Where, under this paragraph, an operator of an electronic marketplace is treated as making a supply of distantly taxable goods to a customer instead of the underlying supplier making the supply through the electronic marketplace of the operator, then the supply by the underlying supplier to the customer is treated as being 2 supplies, namely —

a supply of goods from the underlying supplier to the operator of the electronic marketplace; and

a supply of distantly taxable goods by the operator of the electronic marketplace to the customer.[Act 34 of 2021 wef 01/01/2022]Distantly taxable goods[Act 34 of 2021 wef 01/01/2022]Elected supplies of supplier as not being supplies of distantly taxable goods4A.—

A taxable person may elect to treat its supplies of 2 or more items of goods that would (but for the election) each be a supply of distantly taxable goods, as supplies of goods that are not distantly taxable goods, if 2 or more items of the goods are delivered to any place in the customs territory as a single consignment having a value that exceeds the entry value threshold.

For the purpose of sub-paragraph (1), the value of the single consignment is the aggregate of the values of each of those items in the consignment, the value for each item being determined at the point of sale for the item.

An election under sub-paragraph (1) must be made by notifying the Comptroller in such form and manner and within such time as the Comptroller may require.

The taxable person must not make an election under paragraph (1) unless —

the taxable person makes the delivery to a place in the customs territory as a single consignment as described in that paragraph or the taxable person is able to ensure that the person making the delivery delivers the goods as such single consignment;

the taxable person’s usual business systems and processes allow the taxable person to ensure that the goods that would (but for the election) be distantly taxable goods, are shipped and delivered as a single consignment as described in that paragraph;

the taxable person is able to maintain records of the business systems and processes in sub‑paragraph (b); and

the taxable person is able to make the necessary adjustments to the tax accounted for or paid, or to be accounted for or paid, in the form and manner required by the Comptroller if there are subsequent changes to the supply affecting the value of any single consignment.

Where a taxable person is an operator of an electronic marketplace that is treated as the supplier of the distantly taxable goods, then an election by the taxable person under sub-paragraph (1) must not be made unless the taxable person has obtained the agreement of every underlying supplier of the goods for the operator to ship and deliver the goods as a single consignment.

Where —

a taxable person that has made an election under sub‑paragraph (1) ships, as a single consignment, goods that would (but for the election) be distantly taxable goods;

the goods, when they are delivered to a place in the customs territory, are not delivered as such single consignment; and

tax is not chargeable on the importation of the goods,then, despite the election, the supply of the goods is treated as supplies of distantly taxable goods.

Where a taxable person makes the election when the taxable person does not satisfy the requirements in sub-paragraph (4), the election is of no effect.

Where, at any time after a taxable person has made an election under sub‑paragraph (1), the taxable person ceases to satisfy any of the requirements in sub‑paragraph (4), the election ceases to have effect as from that time.

An election made under this paragraph does not prevent any repacking of goods that have been shipped so long as the goods whose supply is treated as not being of distantly taxable goods, are (after repacking) delivered as a single consignment having a value that exceeds the entry value threshold.[Act 34 of 2021 wef 01/01/2022]Supplies treated as that of redeliverer4B.—

For the purpose of paragraph 3(3A)(b)(i)(C), a redeliverer is treated as making the supply of distantly taxable goods to a customer instead of the supplier, underlying supplier or operator of the electronic marketplace through which the underlying supplier makes the supply, if the following conditions are satisfied:

where the supply was not made through an electronic marketplace — the supplier did not deliver the goods to a place in the customs territory, or arrange or assist in such delivery;

where the supply was made through an electronic marketplace —

the underlying supplier did not deliver the goods to a place in the customs territory, or arrange or assist in such delivery; and

the operator of the electronic marketplace is not treated as the supplier of the goods under paragraph 4(1).

If there is more than one redeliverer for any supply of distantly taxable goods, and more than one such redeliverer would be treated as making the supply of the distantly taxable goods under sub‑paragraph (1), then only one such redeliverer is so treated, namely —

the redeliverer that first entered into an arrangement relating to the supply with the customer; and

in the absence of any such arrangement, the redeliverer that first entered into an arrangement relating to the supply with a person acting on behalf of the customer.[Act 34 of 2021 wef 01/01/2022]Goods transported via land or sea allowed to be treated as distantly taxable goods4C.—

Subject to sub-paragraph (2), where goods that are supplied or treated as supplied by —

a supplier;

an operator of an electronic marketplace to which paragraph 4 applies; or

a redeliverer to which paragraph 4B applies,would (but for their import by sea or land) be distantly taxable goods, the Comptroller may, at the request of the supplier, operator or redeliverer, made in the form and manner specified by the Comptroller, grant approval for the supplier, operator or redeliverer to treat the goods as distantly taxable goods for the purposes of this Act.

The Comptroller must not grant the request unless the Comptroller is satisfied of the following:

at the time of the request, there are reasonable grounds for believing that the supplier, operator or redeliverer is not able, at the point of sale of the goods, to identify the mode of transport of the goods from outside the customs territory to a place in the customs territory;

the supplier, operator or redeliverer has a history of previous compliance with the requirements of the taxation laws of Singapore and of countries and territories outside Singapore;

the supplier, operator or redeliverer satisfies any other condition that the Comptroller thinks necessary.[Act 34 of 2021 wef 01/01/2022]Determining whether goods are located outside customs territory4D.—

In determining whether goods are distantly taxable goods, the operator of an electronic marketplace to which paragraph 4 applies may rely on any information which the Comptroller specifies for the purpose of determining the location of the goods at their point of sale.

Where the operator in sub-paragraph (1) has information that indicates that the goods could be located both in and outside the customs territory at their point of sale, the location of the goods is to be taken as being outside the customs territory.[Act 34 of 2021 wef 01/01/2022]Reimbursement of tax by supplier if tax paid on both supply and importation4E.—

This paragraph applies if a taxable person makes a supply of goods that was subject to tax under section 8(1A) and (4), and the taxable person receives consideration for the supply that includes an amount as tax charged under section 8(1A) on the supply.

The taxable person must reimburse the customer for the amount received as tax charged under section 8(1A) if —

the customer requests the taxable person for the reimbursement; and

the customer provides the taxable person with such documentation that the Comptroller allows, evidencing that the amount of tax charged under section 8(4) on the importation was paid when the goods were imported.[Act 34 of 2021 wef 01/01/2022]Remote services[Act 34 of 2021 wef 01/01/2022]Elected supplies of operator of electronic marketplace5.—

Subject to such conditions as the Comptroller may impose, an operator of an electronic marketplace to which paragraph 4 applies may elect to also be chargeable to tax on all supplies of remote services made by local underlying suppliers through the electronic marketplace to customers who belong in Singapore.[Act 34 of 2021 wef 01/01/2022]

An election made under sub-paragraph (1) must be made by notifying the Comptroller in such form and manner and within such time as the Comptroller may require.

Where an election under sub-paragraph (1) has been made in accordance with sub‑paragraph (2), then a supply of remote services made by a local underlying supplier through the electronic marketplace to a customer who belongs in Singapore is treated as being 2 supplies, namely —

a supply of services from the local underlying supplier to the operator of the electronic marketplace; and

a supply of remote services by the operator of the electronic marketplace to the customer who belongs in Singapore.[Act 34 of 2021 wef 01/01/2022]

Where the operator of an electronic marketplace belongs in a country other than Singapore, then the supply of services mentioned in sub-paragraph (3)(a) is treated as a supply of services that are international services under section 21.Supplies to registered persons allowed to be treated as that of operator of electronic marketplace6.—

Subject to any conditions imposed by the Comptroller, the Comptroller may, at the request of an operator of an electronic marketplace that belongs in Singapore, grant approval for the operator to be chargeable to tax on the following supplies:

for an operator without an election made under paragraph 5(1) — supplies of remote services made by any overseas underlying supplier through the electronic marketplace to a registered person;[Act 34 of 2021 wef 01/01/2022]

for an operator with an election made under paragraph 5(1) — supplies of remote services made by any overseas underlying supplier or any local underlying supplier through the electronic marketplace to a registered person.[Act 34 of 2021 wef 01/01/2022]

Where the operator is granted approval under sub-paragraph (1), then a supply mentioned in that sub‑paragraph of remote services made by an overseas underlying supplier or a local underlying supplier (as the case may be) through the electronic marketplace to a registered person is treated as being 2 supplies, namely —

a supply of services from the overseas underlying supplier or local underlying supplier to the operator of the electronic marketplace; and

a supply of remote services by the operator of the electronic marketplace to the registered person.[52/2018; 33/2019][Act 34 of 2021 wef 01/01/2022]