Zero-rating international services in Singapore: section 21(3)

GST-registered businesses in Singapore charge 9% GST on most sales. Two kinds of sale abroad can be zero-rated — charged at 0%: exports of goods, and international services under section 21(3) of the GST Act.

The free Singapore invoice generator has both as supply types, and never zero-rates on its own just because an address is abroad.

International services

Section 21(3) lists the services that qualify. The most common for small businesses is section 21(3)(j): services supplied under a contract with a person who belongs outside Singapore, that directly benefit a person outside Singapore, and that aren't about land or goods in Singapore. Others cover, for example, services related to goods for export, international transport, and services on land outside Singapore.

What usually doesn't qualify:

• services to an overseas company's Singapore branch or staff;
• services that directly benefit someone in Singapore, even if an overseas company pays;
• services to do with land or buildings in Singapore, or goods that stay here.

Keep the evidence

IRAS expects you to show why the service qualifies: the contract, evidence that your customer belongs outside Singapore (their registration, address and business there), and that the service benefits them outside Singapore. A foreign billing address on its own isn't enough.

Exports of goods

Goods you export are zero-rated when they leave Singapore and you hold the export documents IRAS lists — the export permit and shipping or airway bill, for example. Goods handed to an overseas customer in Singapore are normally standard-rated.

What the invoice shows

A tax invoice with a zero-rated item shows it at 0%, separately from standard-rated items, and it's good practice to say why: "Zero-rated: international services under section 21(3) of the GST Act". Invoice Native prints that statement when you choose the "International services (s 21(3))" supply type.

A worked example

Merlion Studio Pte. Ltd. designs a website for a company in Sydney that has no Singapore presence, under a contract with the Australian company. The service qualifies under section 21(3)(j). Its tax invoice for A$5,000 shows the design work at 0% GST with the section 21(3) statement, and no GST total. If the same studio designed a website for the Sydney company's Singapore office, it would charge 9%.

Reporting it

Zero-rated supplies go in Box 2 of your GST F5 return. They're taxable supplies, so they also count toward the S$1 million registration threshold. Signed-in Invoice Native businesses see Box 2 in their GST F5 summary.

Invoicing in a foreign currency

Overseas customers usually want to be billed in their own currency. For a zero-rated supply, invoice in US dollars, Australian dollars or another currency; there's no GST to convert, though you report the Singapore-dollar value in Box 2 using an exchange rate IRAS accepts. Invoice Native records the rate on the invoice and the GST F5 summary converts it for you.

Getting paid from abroad

PayNow only works in Singapore dollars, so for overseas customers add your bank's SWIFT code and account details, or a payment link from a card processor. Invoice Native prints the PayNow QR code only on Singapore-dollar invoices.

When to charge 9% instead

If you can't show a service qualifies — the contract is with the overseas parent but the work is for its Singapore team, or you can't prove where your customer belongs — the safe course is to charge GST at 9%. You can't fix an under-charge later without paying the GST yourself, and an overseas customer generally can't claim Singapore GST back, so agree it with them first.

Not registered for GST?

The zero rate is only for GST-registered businesses. Then you don't zero-rate anything — you charge no GST at all, at home or abroad. See invoicing without GST.