An exempt supply is a supply on which GST need not be charged. Unlike a zero-rated supply, an exempt supply is not a taxable supply, and the input tax incurred in making it is generally not claimable.
Key takeaways
- The exempt categories are the provision of financial services, the supply of digital payment tokens from 1 January 2020, the sale and lease of residential properties, and the import and local supply of investment precious metals.
- Input tax incurred in making exempt supplies is generally not claimable, unlike input tax on standard-rated and zero-rated supplies.
- Under the De Minimis Rule, a partially exempt business can claim its input tax in full where exempt supplies are no more than an average of SGD 40,000 a month and no more than 5% of total taxable and exempt supplies.
- Exempt supplies are excluded from taxable turnover for the SGD 1 million registration threshold.
- Arranging, broking and advisory fees relating to exempt transactions are not exempt and carry GST at 9%.
What is exempt from GST
- Financial services listed in the Fourth Schedule to the GST Act, such as bank account charges, currency exchange, the issue or sale of shares and bonds, the provision of loans and life policies
- The supply of digital payment tokens from 1 January 2020, including the exchange of such tokens for fiat currency or other tokens
- The sale and lease of residential properties, covering vacant residential land and buildings approved for residential use
- The import and local supply of investment precious metals meeting the purity and tradability criteria set by IRAS
Exempt supplies are reported in Box 3 of the GST return.
Input tax and the De Minimis Rule
A business making both taxable and exempt supplies is partially exempt and applies the De Minimis Rule. Where the value of exempt supplies is no more than an average of SGD 40,000 a month and no more than 5% of the total value of all taxable and exempt supplies in the period, all input tax may be treated as incurred for taxable supplies and claimed in full, excluding claims blocked under Regulations 26 and 27. Where the rule is not satisfied, only input tax attributable to taxable supplies is recoverable.
What sits outside the exemption
The exemption does not extend to services of arranging, broking, underwriting or advising on financial transactions, or to agency services relating to the sale or lease of residential property. Those fees are standard-rated at 9% when supplied to local customers. Movable furniture and fittings sold with a residential property are also taxable, while permanent fixtures such as built-in cabinets are exempt together with the property. A local sale of investment precious metals is exempt, but an export of the same metals is zero-rated.
Key exempt supply figures
| Item | Figure |
|---|---|
| GST charged on exempt supplies | none |
| Input tax on exempt supplies | generally not claimable |
| De Minimis Rule — monthly average | up to SGD 40,000 |
| De Minimis Rule — share of total supplies | up to 5% |
| Reported in the GST return | Box 3 |
Figures as at 2026. Source: IRAS.
Worked example
The lease of a residential flat at SGD 3,000 a month is an exempt supply, so no GST is added and the tenant pays SGD 3,000. The property agent’s commission on arranging that lease is not exempt and carries GST at 9%.
Related terms
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Check how much 9% GST a standard-rated price carries compared with an exempt one.
This page is provided for educational and informational purposes only. It does not constitute financial advice. All figures and worked examples are estimates for illustrative purposes, are subject to change, and do not reflect any individual’s circumstances. Always refer to IRAS and seek independent professional advice before making any financial decisions.