Advertising GST: 2021 Guide and the 2022 Media-Sales Transition

Key steps and distinctions

Before 1 January 2022, the guide used overseas circulation of at least 51% for zero-rating media sales. From that date, the stated new basis requires an overseas contracting customer and direct benefit to an overseas person and/or a GST-registered Singapore person. A Singapore contracting customer, or direct benefit to an unregistered Singapore person, generally requires standard-rating. Imported media sales also moved away from circulation as the test: reverse-charge businesses and relevant overseas-vendor supplies must apply their respective regimes. Media sales include print space, airtime and online impressions or other digital space. An agency acting as principal makes its own onward media supply and accounts for its selling price; a commission agent supplies an agency service, with commission as its value. Media planning, creative production, brand PR and event organisation are assessed under their respective international-service provisions rather than automatically following media-sales treatment. The document includes transitional rules for invoices, payments and services spanning 1 January 2022. Because this is an archived edition written before implementation, use it to understand that transition and consult the newer advertising guide for current transactions.