On 21 October 2026, IRAS enhanced the GST guidance for Consultancy and Professional Services by adding a new illustrative example of a service qualifying for zero-rating under Section 21(3) of the GST Act. The update clarifies that advisory services provided to a non-resident person who is outside Singapore at the time of performance may be zero-rated, provided all conditions are met. This addition helps professional firms, including legal, accounting, and management consultancies, correctly apply zero-rating to cross-border engagements.
Key Takeaways
- Concrete Illustration of Zero-Rating: The new example depicts a Singapore consultancy advising a foreign client on overseas business expansion, demonstrating the “directly in connection with” and “outside Singapore” tests.
- Documentation Emphasis: The guidance reinforces the need for robust evidence (e.g., contracts, correspondence, travel records) to substantiate zero-rating claims during audits.
- Sector-Wide Applicability: While targeted at consultancy, the principles extend to other professional services such as engineering, architectural, and IT advisory services supplied internationally.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement