s 14 Reverse charge on supplies received from abroad
14.—(1) This section applies where —(a) a supply of distantly taxable goods is —(i) made to a person (called in this section the recipient) who —(A) belongs in Singapore; (B) is a registered person, or is not a registered person but is liable to be registered under paragraph 1 or 1B of the First Schedule; and (C) is not receiving the goods as an individual in the private or personal capacity of the individual; or (ii) made by a branch of a person in a country other than Singapore through which the person carries on any business, and made to a branch of the person in Singapore through which the person (also called in this section the recipient) carries on any business; or (b) a supply of services is —(i) made by a person who belongs in a country other than Singapore, and made to a person (also called in this section the recipient) who —(A) belongs in Singapore; (B) is a registered person, or is not a registered person but is liable to be registered under paragraph 1 or 1B of the First Schedule; and (C) is not receiving the services as an individual in the private or personal capacity of the individual; or (ii) made by a branch of a person in a country other than Singapore through which the person carries on any business, and made to a branch of the person in Singapore through which the person (also called in this section the recipient) carries on any business, and the recipient is not entitled to credit for the full amount of the recipient’s input tax under sections 19 and 20 for the prescribed accounting period, or longer period mentioned in section 20(4)(b), in which the distantly taxable goods or services are received. [Act 34 of 2021 wef 01/01/2022] (1AA) In addition, where one or more persons (each Y) other than the recipient (X) mentioned in subsection (1) to whom the supply is made, directly benefit from the distantly taxable goods or services, and any Y —(a) satisfies the criteria of the recipient in subsection (1)(a)(i) or (b)(i), as the case may be; and (b) is not entitled to credit for the full amount of the input tax under sections 19 and 20 for the prescribed accounting period, or longer period mentioned in section 20(4)(b), in which the distantly taxable goods or services are received, then — (c) that Y is treated as a recipient to whom the supply of distantly taxable goods or services is made for the purpose of this section, to the extent of the consideration paid to the supplier (whether directly or indirectly) by that Y for the supply; and (d) X is the recipient only to the extent of the consideration not paid by any Y.[Act 34 of 2021 wef 01/01/2022] (1A) The condition in subsections (1) and (1AA) that the recipient is not entitled to credit for the full amount of the recipient’s input tax does not apply in relation to any input tax excluded by regulations made under section 19(14) from any credit under section 19.[33/2019] [Act 34 of 2021 wef 01/01/2022] (1B) For the purposes of this section, in determining whether goods are distantly taxable goods, if the recipient is unable to verify the location of the goods at the point of sale of the goods, or the manner or mode of transport by which the goods will be delivered to a place in the customs territory, the recipient may rely on the best available information to do so.[Act 34 of 2021 wef 01/01/2022] (2) Subject to subsections (3), (3A) and (4), all the same consequences follow under this Act (and particularly so much as charges tax on a supply and entitles a taxable person to credit for input tax) as if the recipient had himself, herself or itself supplied the goods or services in Singapore in the course or furtherance of a business for that supply, and that supply were a taxable supply.[52/2018; 33/2019] [Act 34 of 2021 wef 01/01/2022] (3) Subsection (2) applies —(a) in the case of distantly taxable goods — only to the extent that the goods are not excluded under the Eighth Schedule (for the purposes of subsection (1)(a)(i) and (ii), or (1)(a)(i), or (1)(a)(ii), as the case may be); and (b) in the case of services — only to the extent that the services are not excluded under the Eighth Schedule (for the purposes of subsection (1)(b)(i) and (ii), or (1)(b)(i), or (1)(b)(ii), as the case may be).[Act 34 of 2021 wef 01/01/2022] (3A) Subsection (2) does not apply to the extent that the recipient pays an amount as tax or as reimbursement for tax —(a) on the supply of the goods or services in fact made to the recipient purportedly under section 8(1A) (whether or not the supply was in fact chargeable to tax under section 8(1A)); or (b) on the importation of the goods pursuant to section 8(4), as the case may be. [Act 35 of 2022 wef 01/01/2023] (3B) Despite subsection (3A), for the purposes of paragraph 1B of the First Schedule, the total value of all supplies of goods and services received by the recipient in Singapore must include the value of the supplies received by the recipient in Singapore that are supplies mentioned in paragraph (a) of that subsection, and importations mentioned in paragraph (b) of that subsection on which tax was imposed as if the goods imported were not distantly taxable goods.[Act 35 of 2022 wef 01/01/2023] (4) Reverse charge supplies are not to be taken into account as supplies made by the recipient when determining the allowance of input tax in the recipient’s case under section 20(1).[52/2018] (5) Despite a recipient being entitled to credit for the full amount of the recipient’s input tax under sections 19 and 20 for the prescribed accounting period, or longer period mentioned in section 20(4)(b), in which distantly taxable goods or services are received, the recipient may elect for all supplies made to the recipient in the circumstances under subsection (1)(a) or (b) in that period to be treated as supplies of distantly taxable goods or services to which subsection (2) applies.[Act 34 of 2021 wef 01/01/2022] (6) Where a recipient who is a registered person receives any supply of distantly taxable goods or services mentioned in subsection (1)(a) or (b) (as the case may be) that is excluded or to any extent excluded under the Eighth Schedule, the recipient may elect for all such supplies of distantly taxable goods or services to be made to the recipient to be treated as supplies of distantly taxable goods or services to which subsection (2) applies (and not supplies of distantly taxable goods or services to which subsection (2) does not apply by reason of subsection (3)).[Act 34 of 2021 wef 01/01/2022] (7) An election under subsection (5) or (6) must be made in the form and manner, and within the time, required by the Comptroller.[52/2018] (8) For the purposes of this section, a head office of a taxable person is treated as a branch of that taxable person.[52/2018] (9) The Minister may make regulations to provide for the circumstances in which subsection (2) does not apply to any supply made in the circumstances in subsection (1)(a)(ii) or (b)(ii) (as the case may be) where the recipient is not entitled to credit for the full amount of the recipient’s input tax as mentioned in subsection (1).[52/2018] [Act 34 of 2021 wef 01/01/2022] (10) The Minister may by order amend the Eighth Schedule.[52/2018]