Regulation 106A
Zero‑rating of supplies to approved marine customers
of Goods and Services Tax (General) Regulations 1993
Subregulation 1
Subject to this regulation, a sale or letting on hire of goods by any taxable person to be used for a prescribed purpose to another taxable person who is an approved marine customer is zero‑rated.
Subregulation 2
Any taxable person who wishes to be an approved marine customer for the purpose of paragraph (1) may make an application to the Comptroller for such approval if the taxable person is eligible to do so under paragraph (4).
Subregulation 3
Every application under paragraph (2) must —
be made in such form and manner as the Comptroller may determine; and
give a full and true account of the particulars or information furnished.
Subregulation 4
A taxable person is eligible to make an application under paragraph (2) if the taxable person satisfies the Comptroller that —
the taxable person is principally engaged in business activities approved by the Comptroller in the shipping or marine industry;
the taxable person makes substantial supplies in the course or furtherance of the taxable person’s business and satisfies such requirements as the Comptroller may determine;
the taxable person’s accounting and internal control systems are able to meet such accounting standards as the Comptroller may require;
the taxable person has faithfully observed and complied with all duties and obligations relating to the taxable person’s liability to pay customs and excise duties, income tax, property tax and goods and services tax; and
the taxable person is able to comply with such other conditions as the Comptroller may impose for the protection of revenue.
Subregulation 5
The Comptroller may, on an application made under paragraph (2), approve the application on such conditions or requirements as the Comptroller may, in the Comptroller’s discretion, impose.
Subregulation 6
The Comptroller may, in granting approval under paragraph (5), require the applicant to furnish security in such form and amount and to make arrangements for the payment of taxes as the Comptroller may determine.
Subregulation 7
An approval granted under paragraph (5) has effect for such period as the Comptroller may determine.
Subregulation 8
An approved marine customer must immediately notify the Comptroller of any change in particulars furnished, the security given, or the arrangements for the payment of taxes.
Subregulation 9
The Comptroller may, at any time, by written notice, vary or revoke any approval granted under this regulation if the Comptroller is satisfied that the approved marine customer —
has provided any false, misleading or inaccurate declaration or information in the approved marine customer’s application under paragraph (3);
has at any time ceased to satisfy any of the requirements for eligibility under paragraph (4); or
has failed to comply with any condition or requirement imposed by the Comptroller under paragraph (5).
Subregulation 10
A taxable person to whom approval has been granted under paragraph (5) must not use the approval, and must take all steps to ensure that no other person uses the approval, except for the purposes for which the approval was granted.
Subregulation 11
Where in any accounting period, the approved marine customer uses or forms an intention to use the goods referred to in paragraph (1) for a purpose other than the prescribed purpose, the approved marine customer must, in the return for that accounting period, account for the tax which would, but for this regulation, have been chargeable on the supply to the approved marine customer, as output tax in the approved marine customer’s return.
Subregulation 12
Where in any accounting period, the approved marine customer ceases to be approved for the purposes of section 21B of the Act, the approved marine customer must, immediately before the approved marine customer’s approval ceases, account for the tax which would, but for this regulation, have been chargeable on the supply to the approved marine customer of the goods which have not been used for any prescribed purpose, as output tax in the approved marine customer’s return.
Subregulation 13
Unless the Comptroller otherwise allows, if any condition or restriction imposed under this regulation or by the Comptroller is not complied with, the approved marine customer must —
pay to the Comptroller without demand an amount equal to the tax which would, but for this regulation, have been chargeable on the supply to the approved marine customer; and
include the amount of tax as output tax in the approved marine customer’s return.
Subregulation 14
In this regulation, goods are used for a prescribed purpose if they are or are to be used by the approved marine customer in the course of the approved marine customer’s business —
as stores or fuel on a ship;
for installation on a ship; or
in the maintenance or operation of a ship.
Subregulation 15
In this regulation —
Definition
“approved marine customer” means a taxable person whose application to be an approved marine customer has been granted by the Comptroller under paragraph (5);
Definition
“ship” means any ship (including an oil rig) but does not include any ship —
that is licensed under the Maritime and Port Authority of Singapore Act 1996 as a harbour craft or pleasure craft;
in respect of which a vessel permit has been granted by the Public Utilities Board under regulations made under the Public Utilities Act 2001; or
that is designed or adapted for use for recreation or pleasure.