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Singapore Import GST Deferment Scheme
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The Import GST Deferment Scheme (IGDS), announced on 22 February 2010 in the Budget Statement, is administered by the Inland Revenue Authority of Singapore (IRAS). It is designed to alleviate the cash flow of taxable traders by deferring the import GST payment at the point of importation. The scheme will come into effect on 1 October 2010.
Currently, GST on imported goods (import GST) is payable to Singapore Customs (SC) at the point of importation, unless the GST-registered importer
- has been granted a relief under the GST (Imports Relief) Order; or
- is under one of various import GST suspension schemes, for example the Major Exporter Scheme (MES).
With effect from 1 October 2010, eligible GST-registered importers can apply for the new Import GST Deferment Scheme (IGDS) as announced in Budget 2010. This scheme aims to ease the import GST cash flow arising from the time lapse between the payment of import GST and the claiming of import GST for GST registered businesses.
Under IGDS, approved GST-registered businesses can defer their import GST payments until their monthly GST return due dates. This means that they account for the deferred import GST and claim it as input tax (subject to usual input tax rules) in the same GST return. Businesses under IGDS must file their GST returns on monthly basis. This is to allow importers to enjoy a credit period of 1-2months, similar to what businesses enjoy for their local purchases (30 days credit terms).
Please click on IGDS to find out how it works. Source: IRAS and BDP International |
