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Major Exporter Scheme (MES) Singapore – GST Suspension for Importers and Exporters
What is the Major Exporter Scheme (MES)?
The Major Exporter Scheme (“MES”) is a GST suspension scheme administered by Inland Revenue Authority of Singapore (“IRAS”) to help businesses that substantially import and export goods.
Under normal GST rules:
- businesses must pay import GST upfront to Singapore Customs; and
- subsequently recover the GST through their GST returns.
This can create significant cash flow issues for exporters because exports are generally zero-rated and no output GST is collected from customers to offset the import GST paid.
Under MES:
- GST on imports of non-dutiable goods is suspended; and
- GST suspension also applies to goods removed from Zero GST (“ZG”) warehouses.
Benefits of the Major Exporter Scheme (MES)
Improved Cash Flow
Businesses do not need to pay import GST upfront when importing qualifying goods under MES.
Easier Import and Export Operations
The scheme supports businesses using Singapore as a logistics and distribution hub.
GST Suspension for ZG Warehouse Removals
Approved MES businesses may also enjoy GST suspension on goods removed from Zero GST warehouses.
Who Can Apply for MES?
Businesses may apply for MES if they:
- are GST-registered in Singapore;
- import and export goods substantially; and
- satisfy IRAS’ qualifying conditions and compliance requirements.
Difference Between IGDS and MES
Although both schemes help alleviate import GST cash flow, they operate differently.
| Scheme | IGDS | MES |
|---|---|---|
| GST treatment | GST payment deferred | GST suspended |
| GST return filing | Monthly filing required | Normal GST filing cycle |
| Main purpose | Defer import GST payment timing | Suspend GST on imports |
| Suitable for | Regular importers | Major importers/exporters |
Need Assistance with MES? How Jed Tax Consulting Can Help.
If your business imports and exports goods regularly, the Major Exporter Scheme (MES) may significantly improve your cash flow and operational efficiency.
At Jed Tax Consulting, we assist businesses with:
- MES applications;
- MES renewal reviews;
- GST reporting for MES imports;
- ASK and ACAP support;
- MES compliance reviews; and
- resolving GST audit queries relating to import and export transactions.
Contact Jed Tax Consulting today to discuss:
- MES eligibility;
- GST reporting obligations;
- MES renewal support; or
- GST compliance reviews for import and export transactions.