Goods and Services Tax Act 1993 · 2020 Revised Edition · Part 12 · General Provisions
94. Temporary arrangements for reverse charge supplies: distantly taxable goods
Feedback & supportLast amended by an amending law of 2022. 2 amendments in all.
Where an invoice for a supply in fact made that gives rise to a reverse charge supply of distantly taxable goods was or is issued on or after 16 February 2021 but before 1 January 2023, tax is chargeable on the reverse charge supply to the extent of —
the amount of the invoice paid on or after 1 January 2023; or
the value of the distantly taxable goods that are delivered on or after 1 January 2023, if lower.
Subsection (1) does not apply if the whole amount of the invoice is paid, or the whole of the goods to which the invoice relates is delivered, before 1 January 2023.
Where an invoice for a supply in fact made that gives rise to a reverse charge supply of distantly taxable goods is issued on or after 1 January 2023 —
tax is chargeable on the reverse charge supply to the extent of the amount of the invoice paid on or after that date; but(b)the recipient may elect for the tax to be chargeable only to the extent of the value of the goods that are delivered on or after that date, if lower.
Despite subsection (3), where an invoice for a supply in fact made that gives rise to a reverse charge supply of distantly taxable goods is issued on or after 1 January 2023 but before the day on which the person receiving the supply is registered in accordance with the First Schedule —
reverse charge supply
“reverse charge supply” means a supply of services treated as having been made by the recipient of those services under section 14(2);
tax is chargeable on the reverse charge supply to the extent of the amount of the invoice paid on or after the day on which the person receiving the supply is registered in accordance with the First Schedule; but(b)the person may elect for the tax to be chargeable only to the extent of the value of the goods that are delivered on or after 1 January 2023, if lower.
Subsections (3) and (4) do not apply if the whole amount of the invoice is paid, and all of the distantly taxable goods are delivered, on or after 1 January 2023.
Subject to subsections (8A), (8B) and (8C), tax is chargeable under subsections (1), (3) and (4) at the tax rate of 8% on the chargeable value of the supply.
Tax chargeable under subsection (1) must be accounted for in the return for the accounting period in which the later of the following falls:
1 January 2023;
the day on which the recipient is registered in accordance with the First Schedule.
Tax chargeable under subsection (3) must be accounted for in the return for the accounting period in which the earlier of the following falls:
the invoice for the reverse charge supply of distantly taxable goods is issued;
the consideration for the amount of the invoice is paid by the recipient.
Tax chargeable under subsection (4) must be accounted for in the return for the accounting period in which the consideration for the amount of the invoice is paid on or after the day on which the person receiving the supply is registered in accordance with the First Schedule.
Where —
the invoice for a supply under subsection (3) or (4) is issued on or after 1 January 2024; and
any consideration for the supply remains to be paid, or any part of the supply remains to be performed, on or after 1 January 2024, then tax is chargeable —
at the tax rate of 8% on the part or the whole of the chargeable value of the supply that is treated as taking place under section 11C before 1 January 2024; and
at the tax rate of 9% on the part or the whole of the chargeable value of supply that is treated as taking place under section 11C on or after 1 January 2024.
Despite subsection (8A) —
the taxable person or person (as the case may be) may elect for tax to be chargeable at 8% on the higher of —
the amount of any consideration paid on or after 1 January 2023 but before 1 January 2024, less any amount of the consideration attributable to the part of the supply performed before 1 January 2023; and
the value of the part of the supply performed on or after 1 January 2023 but before 1 January 2024; and
(if the taxable person or person so elects under paragraph (a)) tax is chargeable at 9% on the chargeable value of the supply less the amount of the consideration or the value on which tax is charged at 8% under paragraph (a).
Where —
the invoice for a supply under subsection (1), (3) or (4) is issued before 1 January 2024; and
any consideration for the supply remains to be paid, or any part of the supply remains to be performed, on or after 1 January 2024,then tax is chargeable —
at 9% on the lower of —
the amount of consideration paid on or after 1 January 2024; and
the value of the part of the supply performed on or after 1 January 2024,or (if the amount and value are the same) on either of them; and
at 8% on the chargeable value of the supply less the amount of consideration or the value on which tax is charged at 9% under paragraph (c).
Sections 39D, 39E and 39F apply to the cases in subsections (8B) and (8C) as if —
a reference in those sections to section 39B were a reference to subsection (8B); and
a reference in those sections to section 39C were a reference to subsection (8C).
For the purposes of this section, where only a part of the distantly taxable goods is delivered, the value of the part is a value that is, in the opinion of the Comptroller, reasonably attributable to the part.
Comptroller
“Comptroller” means the Comptroller of Goods and Services Tax appointed under section 4 and includes for all purposes of this Act, except the exercise of the powers conferred upon the Comptroller by section 5(2), a Deputy Comptroller or an Assistant Comptroller;
[Deleted by Act 35 of 2022 wef 01/01/2023]
For the purposes of paragraph 1B(1)(b) and (2)(b) of the First Schedule, references to supplies of distantly taxable goods received by a person do not apply for the purposes of any 12‑month period mentioned in those provisions that commences before 1 January 2023.
For the purpose of paragraph 1B(2)(a) of the First Schedule in relation to a business transferred before 1 January 2023, references to supplies of goods and services received by the transferee do not include any supplies of distantly taxable goods received by the transferee before 1 January 2023.
business
“business” includes any trade, profession or vocation.(2) Without limiting anything else in this Act, the following are deemed to be the carrying on of a business:(a)the provision by any club, association, society, management corporation or organisation (for a subscription or other consideration) of the facilities or advantages available to its members or subsidiary proprietors, as the case may be;(b)the admission, for a consideration, of persons to any premises.(3) Where a body has objects which are in the public domain and are of a political, religious, philanthropic or patriotic nature, it is not to be treated as carrying on a business only because its members subscribe to it, if a subscription obtains no facility or advantage for the subscriber other than the right to participate in its management or receive reports on its activities.(4) Where a person, in the course or furtherance of a trade, profession or vocation, accepts any office, services supplied by the person as the holder of that office are treated as supplied in the course or furtherance of the trade, profession or vocation.(5) Anything done in connection with the termination or intended termination of a business is treated as being done in the course or furtherance of that business.(6) Subject to any order made under section 10(3), the disposition of a business as a going concern, or of its assets or liabilities (whether or not in connection with its re-organisation or winding up), is a supply made in the course or furtherance of that business.(7) In subsection (2),
In this section, “chargeable value”, in relation to a supply, means the amount of the invoice or the value of the distantly taxable goods on which tax is chargeable under subsection (1), (3) or (4), as the case may be.
In this section, a reference to a part of a supply being performed before, or on or after, a specified date is a reference to —
for a supply of goods — the delivery of the part of the goods before, or on or after, that date, as the case may be; and
for a supply of services — the part of the performance of the services before, or on or after, that date, as the case may be.
Unless otherwise specified, this section applies despite anything in —
section 11C; or
Division 1 of Part 6A.