On July 11, 2022 the Inland Revenue Authority of Singapore (IRAS) released the first edition of a GST Guide for the Travel Industry. This aim of the guide is to explain the GST principles and treatment for the supplies of travel products, services and transactions commonly encountered in the travel industry.
This guide also covers the Budget 2022 announcement on the change in the GST treatment of services comprising the arranging of international transport of passengers and related insurance as well as the arranging or facilitating the booking of accommodation (henceforth referred to collectively as “travel arranging services”). The change takes effect from January 1, 2023 and is highlighted in Section 9 of the guide. The applicable transitional rules for such services straddling January 1, 2023 can be found in Section 12 of the Guide.
A.o. The following subjects are covered in the guide:
· International transport of passengers
o GST treatment for the supply of international transport of passengers
o GST treatment for the supply of insurance services relating to international transport of passengers
o Arranging the international transport of passengers
· Accommodation
o Arranging the supply of accommodation
· Package tours
o Package Tours Supplied as Principal
§ Deposit payment for package tour
§ Optional tour package
§ Regional tour package
o Package Tours Supplied as Agent
· GST Treatment of Cruise Packages
· Cancellation fees for travel products
· Travel arranging services
o Supply of travel arranging services by local travel agents
o GST treatment of travel arranging services before 1 Jan 2023
§ Arranging of international transport of passengers and related insurance
§ Arranging of accommodation
o GST treatment of travel arranging services with effect from 1 Jan 2023
§ Identifying the direct beneficiary of travel arranging services
o Supply of travel arranging services by overseas travel agents
o Supply of travel arranging services to non-GST registered persons in Singapore
· Determining whether you are a principal or an agent
· Determining where the customer belongs
o Local Travel Agents
§ Determining belonging status of customers for services supplied remotely
o Overseas Travel Agents
· Supplies of travel arranging services straddling 1 Jan 2023
o Where the supply of travel arranging services is subject to GST on/after 1 Jan 2023
§ If invoice is issued on/after 1 Jan 2023
§ If invoice is issued before 1 Jan 2023
o Where the supply of travel arranging services qualifies for zero-rating on/after 1 Jan 2023
· Frequently Asked Questions
You can find the first edition of the IRAS GST Guide for the Travel Industry here.
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