Zero-Rated GST in Singapore: Everything Businesses Must Know

The Goods and Services Tax (GST) rate in Singapore was increased to 9% on 1 January 2024. While it doesn’t sound significant, it can add up to your costs quickly and can reduce your business’s competitiveness in the global markets, especially if you operate in an industry with price-sensitive clients.

But, there’s good news. Did you know that there’s a tax structure that lets you apply 0% GST and get a refund on taxes related to your business expenses?

In this article, we’ll break down zero-rated GST, share how it’ll give Singapore business owners an edge in the market, how you can qualify for it, and more. We’ll also share how you can save even more on cross-border transactions with Wise Business’s low foreign currency conversion fees and no hidden exchange rate markups.

Table of contents
What is zero-rated GST and how could it benefit your business? Zero-rated vs. Exempt supplies Types of zero-rated supplies Claiming input tax on zero-rated supplies GST refunds for zero-rated supplies Compliance best practices Frequently asked questions (FAQs)

What is zero-rated GST?

Zero-rated GST is a structure under the GST scheme where 0% GST rate can be applied to specific goods or services whenever they are sold. This scheme applies solely to businesses, allowing your business to skip payment on GST for your sales and recover any input tax incurred on the expenses related to zero-rated GST supplies¹.

How zero-rated GST could benefit your Singapore business

Zero-rated GST allows Singapore businesses to efficiently reduce costs, offer more attractive pricing to international customers, and remain competitive in the global markets.

Zero-rated vs. Exempt supplies

Not every good or service is eligible for zero-rated GST. Some supplies do not allow any input tax recovery even though they are exempt from GST. As a Singapore business, you should take note of the differences to ensure that your business remains compliant with Singapore’s tax system.

Defining zero-rated supplies (0% GST)

Zero-rated supplies refer to goods and services that are taxed at 0% and allow businesses to claim input tax on their related expenses¹. Your business must be GST-registered in order to qualify for zero-rated GST.

➡️ Check out our quick guide on how to register for GST in Singapore.

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Defining exempt supplies (No GST)

Exempt supplies refer to goods or services that are taxed at 0% but do not allow any input tax claims².

Key differences: A side-by-side comparison

To help you gain a better understanding of zero-rated supplies and exempt supplies, we have summarised their differences below.

	Zero-Rated Supplies	Exempt Supplies
Tax Treatment on Sales	0%	0%
Eligibility to Claim Input Tax	Yes	No
GST Registration Status	Must be GST-registered	Do not have to be GST-registered
Examples	Exported goods, international services	Financial services, sales, or rental, or residential property

*Details checked on 27 Aug 2025

Types of zero-rated supplies

There are two key types of zero-rated supplies in Singapore¹. Here’s what you should note for each type.

Exported goods

Exported goods refer to goods sold to customers located outside Singapore. These goods should be exported within 60 days from the invoice date or receipt of payment, whichever is earlier. Always ensure that you keep clear export records such as commercial invoices, customs permits, shipping documents, and airway bills³.

The following items fall under the exported goods zero-rated supplies category:

• Direct vs. indirect exports³

Direct exports refer to goods where your business owns custody of or controls the entire export process. Such goods can be treated as zero-rated supplies, and you must keep the necessary records and documents.

Indirect exports refer to goods where your business does not own custody of or control the export process. Indirect exports will be taxed at the prevailing GST rate, with the exception of goods with required documents to support their zero-rating.

• Hand-carried exports⁴

Hand-carried exports refer to goods that are hand-carried out of Singapore via Changi International Airport. These goods fall under the Hand-Carried Export Scheme (HCES) and will require an export permit that can be obtained via TradeNet.

➡️ Read our guide on export permits to learn how to apply for one.

The goods will have to be presented for inspection at Changi International Airport along with supporting documents, which include a valid export permit, supporting invoice, and a boarding pass or air ticket.

• Supplies to aircraft and ships

Such supplies refer to stores, fuel, merchandise sold onboard, or goods used in the installation, maintenance, or operations of aircraft and ships.

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International services⁵

If your business provides services to clients overseas, you may also be eligible for zero-rated GST.

• Criteria for qualifying services

On top of having documentation to prove that your client is located outside Singapore, or that your service is performed outside the country, you should also note that zero-rated GST is only applicable to certain types of services. For example, if you are an event management company registered in Singapore, but are organising an event in Malaysia, the contract for the Malaysia event can be zero-rated if the service is performed wholly in Malaysia.

Here are some of the common services that qualify for zero-rated GST:

• Advertising services
• Transport services
• Telecommunication services
• Financial services, consultancy, and professional services (e.g., event management, training services, etc) that are provided to clients located overseas
• Services provided within the warehouse under the Specialised Warehouse Scheme

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Claiming input tax on zero-rated supplies

You should ensure that your business remains compliant with GST regulations while you are claiming input tax. Here are the key pointers to note:

Eligibility requirements for claiming

While every zero-rated supply has its own unique conditions, these are key requirements you must abide by:

• If you are selling goods, take note of the 60-day export window
• If you are providing services, you should always verify that your customer is located outside of Singapore

You should check with the Inland Revenue Authority of Singapore (IRAS) if you are unsure whether your international transaction meets all the qualifications.

Required documentation and records

Always maintain accurate and complete records of all transactions. Keep a copy of tax invoices, contracts, proof of payment, proof of exports, and any other supporting documents related to the sales of zero-rated supplies. In the event of incomplete documents, your claims may be disallowed during audits.

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GST refunds for zero-rated supplies

If your business is making eligible zero-rated supplies, and your input tax exceeds the output tax of your sales, you can claim a GST refund from IRAS.

Step-by-step guide to applying for a refund

These are the steps you should take to request a refund:

1. Review your GST transactions⁶: If your total GST incurred on purchases and expenses (input tax) is more than the GST collected from customers (output tax), the difference will be refunded to you. However, if your input tax is less than your output tax, you will need to pay the difference to IRAS.
2. Prepare supporting documents³: These include tax invoices, contracts, export permits, and payment records.
3. File GST F5 return via IRAS myTax⁷: Complete the GST F5 return for the accounting period within a month after your GST accounting period and declare the accurate refund amount.
4. Respond to IRAS’ queries accordingly⁸: IRAS performs audits regularly to ensure that all claims are legitimate. You may receive queries for additional supporting documents during the processing. Should there be any mistakes in your claims, you will need to file a GST F7 to correct the errors.
5. Receive a refund when successful: Upon successful claims, your input tax will be refunded into your corporate bank account. You will need to keep a record of the transaction for GST declaration⁹.

What IRAS checks before approving a refund

You should note that IRAS conducts thorough checks on the legitimacy of GST refund claims. Your business’s GST filings, tax figures, export timeframes, service contracts, and related documents will be scrutinised during the process. As such, you should ensure that your business remains compliant with zero-rated GST regulations.

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Compliance best practices

Here are some practical tips to ensure that you remain compliant with IRAS’ requirements:

Accurate record-keeping

Always maintain accurate and organised records related to your zero-rated GST transactions. These documents should be retained for at least five years⁹.

Timely filing of GST returns

File your GST returns on time to ensure that you do not miss the window. You should also respond to any follow-up queries promptly to ensure that your claims can be processed smoothly.

Avoid common mistakes⁷

GST refund errors can lead to penalties and fines. Businesses are given a year to correct any errors, but should always be vigilant. Here are some common mistakes to avoid:

• Misclassifying zero-rated supplies: Always check with IRAS for the latest requirements, where unsure
• Missing documentation: Always ensure that you have accurate and clear documents to support your claims
• Disallowed expenses: Only business expenses are eligible for input taxes under zero-rated GST

Staying updated with IRAS guidelines

You should always keep abreast of IRAS guidelines to ensure that your business remains compliant with the latest requirements. A simple way to do so is to rely on tax experts or have an employee be on the lookout for any changes in IRAS’ guidelines periodically.

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Frequently asked questions (FAQs)

What types of supplies qualify for zero-rated GST?

Exported goods and selected international services such as financial services, consultancy services, and international transport may qualify for zero-rated GST.

Can I claim input tax on zero-rated supplies?

To claim input tax on zero-rated supplies, your Singapore business must fulfil the following criteria:

• GST-registered business
• Maintain proper tax invoices, transaction records, and supporting documents
• Input tax must not be explicitly disallowed under GST regulations (e.g., personal expenses)
• Claims should only be made on transactions for business purposes and relate directly to taxable supplies.
• Claims must be included in the GST F5 return in your business’s GST return submission.

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Conclusion

Zero-rated GST allows Singapore businesses to reduce costs, protect margins, and remain competitive internationally. However, you should note that there are clear regulations governing zero-rated supplies in Singapore, and it is the business owner’s responsibility to ensure that their businesses remain compliant.

While zero-rated GST helps reduce costs on eligible supplies, Singapore businesses still have many expenses to deal with.

High foreign currency conversion fees and hidden exchange rate markups are often the most significant, yet overlooked, costs for local companies making high-volume or frequent transactions with overseas suppliers and contractors.

	Wise Business helped Axpara's Founder, Keith Tan save over SGD 50K annually by eliminating hidden exchange rate markups. It also enabled him to halve his finance team, reallocating staff to strategic roles. ➡️Read Axpara's case study

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Sources:

1. When to charge 0 GST | IRAS
2. Supplies Exempt from GST | IRAS
3. Exporting of Goods | IRAS
4. Hand-Carried Exports Scheme (HCES) | IRAS
5. Providing international services | IRAS
6. GST: General Guide for Businesses | IRAS
7. Completing GST Return | IRAS
8. Overview of Audits by IRAS | IRAS
9. Record Keeping Guide for GST-Registered Businesses | IRAS

Sources checked on 15 September 2025