The Anti Neo-Democracy Theorist

Not too sure the accounting reasons behind this particular exemption of advertising services-Anyone can attempt to clarify? Any accountants/economists?

The Straits Times (Singapore)
December 13, 2006 Wednesday

MOF takes in three changes to GST Act

THREE recommendations on an amendment to the goods and services tax (GST) Act have been accepted by the Ministry of Finance (MOF).

These changes involve implementing an advance ruling system for GST and revising GST rules for zero-rating of advertising services.

The new ruling system takes effect from Jan 1 and will enable taxpayers to obtain legally binding rulings as long as their requests fulfil a clear set of procedures.

It will also clarify when the Comptroller has to provide rulings requested by taxpayers and the legal consequences of the rulings issued.

As well, the GST rules will be revised to make it simpler to determine when the supplies of advertisements may be zero-rated, which means no GST will be levied.

This relates specifically to advertising services that involve the sale of media space or airtime to circulate the ads. These rule changes will take effect from Jan 1.

In total, MOF received 32 comments during its consultation exercise held from Sept 8 to Oct 6.

Apart from the above changes, another 19 comments have been accepted as feedback, for which the Inland Revenue Authority of Singapore will make clarifications in its e-tax guides.

MOF’s responses to the major comments received can be found on its website.

FIONA CHAN

See MOF website too