Guidance: GST treatment of travel products

Travel arranging services refer to services which facilitate the booking and payment of the underlying travel product(s) (e.g. international transport of passengers and travel accommodation). Such services can be provided via the Internet or through non-digital means (e.g. walk-in or over the phone).

In Budget 2022, the Minister for Finance announced that the basis for determining whether zero-rating applies to a supply of travel arranging services will be updated, to be based on where the customer and direct beneficiary of the services belong. Specifically, zero-rating will apply if the services are contractually supplied to an overseas person and directly benefiting an overseas person or a GST-registered person in Singapore. If the customer belongs in Singapore, the supply of travel arranging services will be standard-rated.

This change will ensure that the GST rules accurately reflect the place of consumption of travel arranging services and parity in GST treatment between the local and overseas suppliers on their supplies of such travel arranging services.

There is no change in the GST treatment of the supply of the underlying travel product.

The revised GST treatment will apply to supplies of arranging services made in the capacity of an agent on or after 1 Jan 2023.

Source: gov.sg

---

---