GST E-tax Guide for Retailers
The IRAS has updated the above e-tax guide with new paragraph on retailers operating at Changi International Airport on 17 January 2020.
Based on our reading of that new paragraph (paragraph 20) in the e-tax guide, there isn't any new GST rule that we have to take note. Sales of goods in the airport transit/restricted area continue to be zero-rated if the goods are sold to departing passenger but standard-rated if the goods are sold to arriving passenger or airport staff.
The retail industry continues to be challenging from a GST perspective mainly because of the creative minds behind the sales and marketing team to come out with promotional campaign to boost sales. Discount, rebates, loyalty points, multi redemption vouchers, provision of vouchers for free and configuration of point of sales system for the above marketing initiatives continues to be a blind spot from a GST compliance perspective.
Please have a GST expert to review the above marketing initiatives for compliance and opportunity if you are in the retail industry.