In Budget 2021, the Singapore Minister for Finance announced that the basis for determining whether zero-rating applies to a supply of media sales will be changed as of 1 January 2022 from the place of circulation of the advertisement to the place where the customer and direct beneficiary of the service reside. The change is made in recognition of the growth in online advertising and the compliance difficulties faced by businesses in determining the place of circulation of advertisements, especially for online media sales.
In light of the above, the Inland Revenue Authority of Singapore (IRAS) updated the e-Tax Guide GST: Guide for the Advertising Industry on 11 June 2021 to provide guidance on these upcoming changes. Please refer to our alert for further details regarding, inter alia:
- Definition of media sales
- Impacted entities and individuals
- Incidental exempt supplies
- GST treatment of cancellation fees
- Transfer pricing (TP) adjustments
- Removal of administrative concession for the recovery of overseas brokerage on shares traded on overseas exchanges
