A zero-rated supply is a taxable supply on which GST is charged at 0% instead of 9%. Singapore zero-rates two kinds: exports of goods and international services under section 21(3) of the GST Act. Because the supply is still taxable, the input tax incurred to make it is claimable — the difference from an exempt supply.
Key takeaways
- Under section 21 of the GST Act, a supply of goods is zero-rated only if the goods are exported, and a supply of services only if the services are international services. A zero-rated supply carries no GST but is treated as a taxable supply in every other respect.
- Goods can be zero-rated only when the supplier is certain at the time of supply — the earlier of the invoice date and the date payment is received — that they will be exported. The goods must then be exported and the documents obtained within 60 days of the time of supply, subject to the exceptions in IRAS’s Guide on Exports; otherwise the supply is standard-rated. Goods delivered to a local customer at a location in Singapore are generally standard-rated, even if the customer later exports them; IRAS’s Guide on Exports sets out limited exceptions.
- Services are zero-rated only if they fall within section 21(3); not every service to an overseas customer qualifies. Under section 21(3)(j), for example, the services must be supplied under a contract with an overseas person who is not in Singapore when the services are performed, and must directly benefit an overseas person who is outside Singapore at that time, or a GST-registered person belonging in Singapore. They must not relate to land or goods in Singapore (other than goods for export under section 21(3)(g)), and must not be media sales, which fall under section 21(3)(u). IRAS lists zero-rating a supply only because the customer is overseas as a common GST return error.
- Input tax incurred to make zero-rated supplies is claimable, as for standard-rated supplies. Zero-rated supplies go in Box 2 of the GST F5. A tax invoice is not required for a zero-rated supply; if one is issued, it must show GST at 0%.
- Zero-rated supplies count towards the SGD 1 million taxable turnover that makes GST registration compulsory. Sales of capital assets are left out, and so are exempt supplies that qualify as international services, such as financial services to overseas persons. A business can apply for exemption from registration where zero-rated supplies are more than 90% of its taxable supplies and it would be in a net refundable position if registered; once IRAS approves the exemption, the business does not charge GST or file GST returns, and cannot claim the GST on its business purchases.
What is a zero-rated supply?
Two routes lead to 0% GST, and both keep the supply taxable.
A direct export, where the supplier has custody of the goods and controls the export arrangement, can be zero-rated with the required documents kept within 60 days. An indirect export, where it lacks either, is standard-rated unless the supplier is certain at the time of supply that all the goods will be exported and the documents can be kept within 60 days.
Zero-rated beside standard-rated, exempt and out-of-scope
How IRAS treats each kind of supply. The exception in the last column: exempt supplies that qualify as international services, such as financial services to overseas persons, are zero-rated but still left out of taxable turnover. Out-of-scope supplies carry no GST and are not reported in the supply boxes (Boxes 1–4) of the GST F5.
| Supply | GST charged | Input tax | GST F5 | Counts for SGD 1m |
|---|---|---|---|---|
| Standard-rated | 9% | Claimable | Box 1 | Yes, except capital asset sales |
| Zero-rated | 0% | Claimable | Box 2 | Yes, except capital asset sales and exempt international services |
| Exempt | None | Generally not | Box 3 | No |
| Out-of-scope | None | Only where it would be taxable if made in Singapore | Not in Boxes 1–4 | No |
An export invoiced on 1 March 2026
Money Snap’s illustration of IRAS’s 60-day rule. When the deadline is missed, the supply has to be standard-rated; the error is corrected in a GST F7, or in the next GST return where it meets both conditions of IRAS’s error-correction concession (net GST in error of SGD 3,000 or less across the affected periods, and errors in the other boxes, excluding Boxes 6, 7 and 12, of no more than 5% of total supplies in Box 4). IRAS’s Guide on Exports sets out the exceptions.
Where zero-rating shows up
Five things people get wrong
- IRAS — When to charge 0% GST (zero-rate) — the two kinds of zero-rated supply
- IRAS — Exporting of goods — time of supply, the 60-day rule and documents
- IRAS — Providing international services — section 21(3) and its conditions
- IRAS — Applying for exemption from GST registration — the 90% and net-refund conditions
- IRAS — Completing GST returns — Box 2 and common errors
- IRAS — Major Exporter Scheme — the scheme thresholds
- IRAS e-Tax Guide — GST: Guide on Exports — exceptions to the 60-day rule
- Singapore Statutes Online — GST Act 1993, section 21 — the legal definition
- IRAS — Do I need to register for GST — what counts as taxable turnover
- IRAS — Correcting errors made in GST return (GST F7) — the SGD 3,000 and 5% concession
- IRAS — Supplies exempt from GST — zero-rated against exempt input tax
- IRAS — Out-of-scope supplies — supplies outside GST
- IRAS — Conditions for claiming input tax — input tax on out-of-scope supplies
- IRAS e-Tax Guide — GST: General Guide for Businesses — tax invoices for zero-rated supplies
Official IRAS GST rules and the GST Act, for general information only. Not financial advice.
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.