Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698832473141.pdf (Singapore)
Goods and Services Tax (Amendment) Bill Bill No.

33/2019.

Read the first time on 7 October 2019.

A BILL i n t i t u l e d An Act to amend the Goods and Services Tax Act (Chapter 117A of the 2005 Revised Edition).

Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows: Short title and commencement 2 1.

This Act is the Goods and Services Tax (Amendment) Act 2019 and comes into operation on a date that the Minister appoints by notification in the Gazette.
5 Amendment of section 2 2.

Section 2(1) of the Goods and Services Tax Act (called in this Act the principal Act) is amended by inserting, immediately after the definition of “account with the electronic service”, the following definitions: 10 “ “accountant” means a public accountant within the meaning of the Accountants Act (Cap.

2); “advocate and solicitor” means an advocate and solicitor the Legal Profession Act within the meaning of (Cap.

161);”.

15 New section 2A 3.
The principal Act is amended by inserting, immediately after section 2, the following section: “Digital payment tokens 2A.—(1) Subject to subsections (2) and (3), a reference in this Act to a digital payment token is a reference to a digital the following representation of value that has all of characteristics: (a) it is expressed as a unit; (b) it is designed to be fungible; (c) it is not denominated in any currency, and is not pegged by its issuer to any currency; (d) it can be transferred, stored or traded electronically; 20 25 3 (e) it is, or is intended to be, a medium of exchange accepted by the public, or a section of the public, without any substantial restrictions on its use as consideration.
(2) A reference in this Act to a digital payment token does not include any of the following: 5 (a) money; (b) anything which, if supplied, would be an exempt supply under Part I of the Fourth Schedule for a reason other than being a supply of one or more the digital characteristics mentioned in subsection (1); representations having value of (c) anything which — (i) gives an entitlement an entitlement to direct the supply of, goods or services from a specific person or persons; and to receive, or 10 15 (ii) ceases to function as a medium of exchange after the entitlement has been used.
(3) The Minister may, by order in the Gazette, do any of the following: 20 (a) add to the characteristics, or modify or remove any characteristic, in subsection (1) of digital payment tokens for the purposes of this Act, whether generally or for specific circumstances; (b) add to the exclusions, or modify or remove any exclusion, in subsection (2).”.

25 Amendment of section 14 4.
Section 14 of the principal Act is amended — (a) by deleting the words “in the following circumstances:” in subsection (1) and substituting the word “where —”; 30 (b) by deleting sub-paragraph (i) of subsection (1)(a) and substituting the following sub-paragraph: 4 “(i) supplied by a person who belongs in a country other than Singapore, and received by 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 services as an individual in the private or personal the capacity individual; or”; “and” end the of of at (c) by inserting subsection (1)(a)(ii); the word (d) by deleting the words “claim the full amount of input tax credit” in subsection (1)(b) and substituting the words “credit for the full amount of his input tax”; (e) by inserting, immediately after subsection (1), the following subsection: “(1A) Subsection (1)(b) does not apply in relation to any input tax excluded by regulations made under section 19(14) from any credit under section 19.”; (f) by deleting the words “his business” in subsection (2) and substituting the words “a business for that supply”; and (g) by deleting subsections (5) and (6) and substituting the following subsections: “(5) Where a recipient who is a registered person is not within subsection (1)(b), the recipient may elect for all supplies to the recipient made in the circumstances under subsection (1)(a) to be treated as supplies of services to which subsection (2) applies (despite subsection (1)(b) not applying).
5 (6) Where a recipient who is a registered person receives any supply of services excluded or to any extent excluded under the Eighth Schedule that is made by a person mentioned in subsection (1)(a), the recipient may elect for all such supplies of services to be received by the recipient to be treated as supplies of services to which subsection (2) applies (and not supplies to which subsection (2) does not apply by reason of subsection (3)).”.

Amendment of section 15 5.


Section 15(7) of the principal Act is amended by deleting the words “for determining” and substituting the words “by which a supplier may determine”.

Amendment of section 17 6.

Section 17 of the principal Act is amended — (a) by deleting the words “supplied by the person or branch mentioned in section 14(1)(a) or member of the group mentioned in section 30(1A), without any deduction of any amount required to be withheld as tax under the Income Tax Act (Cap.
134) (if applicable)” in subsection (3A) and substituting the words “in fact supplied that gave rise to the reverse charge supply”; (b) by inserting, immediately after subsection (3A), the following subsection: “(3AA) Where a reverse charge supply arises from services supplied by a person or branch mentioned in section 14(1)(a) or member of the group mentioned in section 30(1A), then, for the purpose of determining the value of the reverse charge supply, any amount required to be withheld as tax under the Income Tax Act must not, if included in the consideration for the supply in fact made, be deducted.”; and 5 6 (c) by deleting the words “the recipient may deduct from the value of the reverse charge supply an amount equal to any cost that relates to any of the following that is included as part of the consideration for the services in fact supplied” in subsection (3B) and substituting the words “then, for the purpose of determining the value of the reverse charge supply, any of the following that is included as part of the consideration for the services in fact supplied may be deducted”.
10 Amendment of section 28A 7.

Section 28A(1) of the principal Act is amended by deleting paragraph (b) and substituting the following paragraph: “(b) section 32(1);”.

Amendment of section 30 15 20 25 30 8.


Section 30(4) of the principal Act is amended by inserting, immediately after the word “fit” in paragraph (d), the words “including, where all members of the group are taxable persons registered under paragraph 1B of the First Schedule, a condition that no claim may be made for any credit for any input tax of the representative member (including any amount treated as such under this section)”.

Amendment of section 33 9.
Section 33 of the principal Act is amended — (a) by deleting subsection (1) and substituting the following subsections: “(1) Where a person does not have his usual place of residence in Singapore and the person is accountable for any tax, or has duties imposed on the person by or under this Act, then the person (called in this section the overseas registrant) — (a) must, if he registered (Seventh Schedule — pay-only) person; and not is a 7 if (b) may, he is a registered (Seventh Schedule — pay-only) person, appoint and maintain a section 33(1) agent in matters by reference to which that overseas registrant is so accountable or on whom the duties are so imposed.
(1A) The section 33(1) agent — (a) is substituted for the overseas registrant as the person accountable for the tax; or (b) is under an obligation to discharge any duties imposed on the overseas registrant by or under this Act, the case may be, as appointment of the section 33(1) agent.
(1B) The overseas registrant must — in accordance with the (a) if he a is not registered (Seventh Schedule — pay-only) person — provide the Comptroller with details of his section 33(1) agent when applying to be registered under this Act; (b) if he is a registered (Seventh Schedule — pay-only) person — notify the Comptroller the section 33(1) agent in writing of appointed by the overseas registrant not more than 30 days after the date of the appointment; and (c) where there is — (i) a change in any detail of the section 33(1) agent provided under paragraph (a); or (ii) a change of the section 33(1) agent appointed by the overseas registrant, 30 notify the Comptroller in writing of the change not less than 30 days before the date 8 of the change, or any other period allowed by the Comptroller in a particular case.
(1C) The Comptroller may, in any particular case, waive the requirement under subsection (1) in respect is not a registered of an overseas registrant (Seventh Schedule — pay-only) person, subject to any condition that the Comptroller may impose, including a condition to provide security in the form and manner required by the Comptroller.
that (1D) The Comptroller may at any time direct any overseas registrant to replace a section 33(1) agent of the overseas registrant with another section 33(1) agent.”; (b) by deleting the word “and” at the end of subsection (5)(a); and (c) by deleting the full-stop at the end of paragraph (b) of subsection (5) and substituting the word “; and”, and by inserting immediately thereafter the following paragraph: “(c) “section 33(1) agent”, in relation to an overseas registrant, means an agent, a manager or a factor — (i) whose usual place of residence is in Singapore; and (ii) who is appointed by the overseas registrant for either or both of the following purposes: (A) to be the substituted overseas the registrant person accountable for the tax; for as (B) to any discharge imposed on registrant by or under Act.”.
duties overseas this the 9 Amendment of section 44 10.

Section 44 of the principal Act is amended — (a) by inserting, immediately after the word “money” in subsection (1), the words “or digital payment tokens”; and (b) by inserting, immediately after the word “moneys” in subsection (1A), the words “and digital payment tokens”.

Amendment of section 56 11.
Section 56 of the principal Act is amended — (a) by deleting the words “and in appeals to, or in cases stated for the opinion of, the High Court and in appeals from the High Court under section 54” in decisions of subsection (1); (b) by deleting the words “, the High Court or the Court of Appeal, as the case may be,” in subsection (2); (c) by deleting the words “the Board or the Court” in subsection (2) and substituting the words “the Board”; (d) by deleting the words “, the High Court or the Court of Appeal” wherever they appear in subsection (3); (e) by deleting the word “identity” in subsection (3) and substituting the word “name”; and (f) by deleting the words “of Review and Supreme Court” in the section heading.
New sections 62A and 62B 12.
The principal Act is amended by inserting, immediately after section 62, the following sections: “Penalty for misrepresenting status of person 62A.—(1) A person who receives a Seventh Schedule supply (X) commits an offence if — (a) X belongs in Singapore under section 15 and is not a registered person; and 10 (b) X provides (whether or not to the person making the supply) any information for the purpose of the supply that is false as to — (i) whether X belongs in Singapore under section 15; or (ii) whether X is a registered person.
(2) A person who is guilty of an offence under subsection (1) shall on conviction — (a) be punished with a fine of an amount equal to the tax undercharged on the supply in amount of consequence of the false information, or which would have been undercharged if the person making the supply had accepted the information as true; and (b) also be liable to a further fine of an amount not exceeding $10,000.
Penalty for wilfully misrepresenting status of person 62B.—(1) A person who receives a Seventh Schedule supply (X) commits an offence if — (a) X belongs in Singapore under section 15 and is not a registered person; (b) X provides (whether or not to the person making the supply) any information for the purpose of the supply; and (c) X wilfully provides the information with intent to induce the person making the supply into making a determination that — (i) X does not belong in Singapore for purposes of the supply; or (ii) X is a registered person.
(2) For the purpose of subsection (1), where — (a) X purchases the supply using a device; and 11 (b) a mobile country code, an IP address or other information identifies the physical location of the device at the time X makes the purchase, then X, in using the device, is treated as providing information as to that physical location.
5 (3) A person who is guilty of an offence under subsection (1) shall on conviction — (a) be punished with a fine equal to 3 times the amount of the tax undercharged on the supply in consequence of the person making the supply having been induced as mentioned in subsection (1)(c), or which would have been undercharged if the person making the supply had been so induced; and (b) also be liable to — (i) a further fine not exceeding $10,000; or (ii) imprisonment for a term not exceeding 7 years, or to both.”.
Amendment of section 64A 13.

Section 64A(2) of the principal Act is amended by deleting the word “Where” and substituting the words “Subject to subsection (3), where”.

Amendment of section 84 14.
Section 84 of the principal Act is amended — (a) by deleting the words “made in the course or furtherance of a business” in subsections (1)(f)(i) and (2A)(a)(i) and substituting in each case the words “(whether or not made in the course or furtherance of a business), that is relevant for the purposes of this Act”; and (b) by deleting paragraph (a) of subsection (2) and substituting the following paragraph: “(a) any information concerning his or any other person’s income, assets or liability, 10 15 20 25 30 12 or concerning his or any other person’s transactions (whether or not made in the course or furtherance of a business), that is relevant for the purposes of this Act; or”.
5 Repeal and re-enactment of sections 92 and 93 15.
Sections 92 and 93 of the principal Act are repealed and the following sections substituted therefor: “Temporary arrangements for Seventh Schedule supplies 92.—(1) Where (expressly or impliedly) for a Seventh Schedule supply to be performed progressively and continuously over a period, then — an agreement provides (a) if the agreement was made before 19 February 2018 — tax is not chargeable on the supply; and (b) if the agreement was or is made on or after 19 February 2018 but before 1 January 2020 — tax is chargeable on the supply to the extent the services are performed on or after 1 January 2020.
(2) If any services under subsection (1)(b) are covered by an invoice issued or consideration received before 1 January 2020, the tax chargeable in relation to those services must be accounted for in the return for the accounting period in which the later of the following falls: (a) 1 January 2020; (b) the day on which the person making the supply is registered in accordance with the First Schedule.
(3) Subject Seventh Schedule supply was or 19 February 2018 but before 1 January 2020, chargeable on the supply to the extent of — to subsection (1), where an invoice for a is issued on or after tax is (a) the amount of the invoice received on or after 1 January 2020; or 10 15 20 25 30 13 (b) the value of the services to which the invoice relates that are performed on or after 1 January 2020, if lower.
(4) Subsection (3) does not apply if the whole amount of the invoice is received, or the whole of the services is performed, before 1 January 2020.

5 (5) Tax chargeable under subsection (3) must be accounted for in the return for the accounting period in which the later of the following falls: (a) 1 January 2020; (b) the day on which the person making the supply is registered in accordance with the First Schedule.
(6) Subject to subsection (1), where an invoice for a Seventh Schedule supply is issued on or after 1 January 2020 — (a) tax is chargeable on the supply to the extent of the amount of the invoice received on or after that date; but (b) the taxable person may elect for the tax to be chargeable only to the extent of the value of the services that are performed on or after that date, if lower.
(7) Subsection (6) does not apply if the whole amount of the invoice is received, and the whole of the services is performed, on or after 1 January 2020.

(8) For the purposes of this section, where only a part of the services under a Seventh Schedule supply is performed, the value of the part is a value that is, in the opinion of the Comptroller, reasonably attributable to the part.
Temporary arrangements for reverse charge supplies 93.—(1) Where an invoice for a supply in fact made that gives rise to a reverse charge supply was or is issued on or after 19 February 2018 but before 1 January 2020, tax is chargeable on the reverse charge supply to the extent of — 10 15 20 25 30 14 (a) the amount of the invoice paid on or after 1 January 2020; or (b) the value of the services to which the invoice relates that are performed on or after 1 January 2020, if lower.
(2) Subsection (1) does not apply if the whole amount of the invoice is paid, or the whole of the services to which the invoice relates is performed, before 1 January 2020.

(3) Tax chargeable under subsection (1) must be accounted for in the return for the accounting period in which the later of the following falls: (a) 1 January 2020; (b) the day on which the recipient accordance with the First Schedule.
is registered in (4) Where an invoice for a supply in fact made that gives rise to a reverse charge supply is issued on or after 1 January 2020 — (a) tax is chargeable on the reverse charge supply to the extent of the amount of the invoice paid on or after that date; but (b) the recipient may elect for the tax to be chargeable only to the extent of the value of the services that are performed on or after that date, if lower.
(5) Subsection (4) does not apply if the whole amount of the invoice is paid, and the whole of the services is performed, on or after 1 January 2020.

(6) For the purposes of this section, where only a part of the services in fact supplied is performed, the value of the part is a value that is, in the opinion of the Comptroller, reasonably attributable to the part.”.

5 10 15 20 25 15 Amendment of First Schedule 16.
The First Schedule to the principal Act is amended — the after (a) by inserting, immediately words “Seventh Schedule supplies” in paragraphs 1A(1)(a)(ii) and (b)(ii), (2)(a)(ii) and (b)(ii) and (3)(b), 3A(a)(ii) and 5(3)(b)(ii), the words “, other than exempt supplies,”; (b) by deleting the words “to claim the full amount of input tax credit under sections 19 and 20” in paragraph 1B(1)(a) and (b) and (2)(a) and (b) and substituting in each case the words “to credit for the full amount of input tax as mentioned in section 14(1)(b) (read with section 14(1A))”; (c) by deleting the word “or” at the end of paragraph 8(1)(a)(ii)(A); (d) by inserting, immediately after sub-paragraph (B) of paragraph 8(1)(a)(ii), the following sub-paragraph: 1B of tokens Part “(C) digital payment specified in the paragraph of Fourth Schedule, where the supplies of the digital payment tokens are supplies of under international section 21(3);”; services I (e) by inserting, words “Seventh Schedule supplies” in paragraph 8(1)(c), the words “, other than exempt supplies”; and immediately after the (f) by deleting the words “or, for services mentioned in section 14(1)(a), received in the course or furtherance of a business” in paragraph 18(1) and substituting the words “in the course or furtherance of a business, or of services mentioned in section 14(1)(a), as the case may be”.
Amendment of Third Schedule 17.
The Third Schedule to the principal Act is amended — (a) by inserting, immediately after the words “tax on the supply” in paragraph 1(1)(c), the words “(the tax not being 16 excluded by regulations made under section 19(14) from the credit)”; (b) by inserting, immediately after sub-paragraph (1) of paragraph 1, the following sub-paragraph: “(1A) Without affecting sub-paragraph (1), where — (a) a supply mentioned in section 14(1)(a) or 30(1A) is made for a consideration in money; (b) the value of the supply is (apart from this paragraph) less than its open market value; and (c) the person, branch of the person or member of the group (as the case may be) in fact making the supply is connected with the recipient of the supply, the Comptroller may direct that the value of the supply is to be taken to be its open market value.”; (c) by inserting, immediately after the words “other than Singapore currency” in paragraph 11(1) and (1A), the words “or in digital payment tokens”; and (d) by inserting, immediately after paragraph 14, the following sub-heading and paragraph: “Reverse charge on supplies received from abroad 15.—(1) This paragraph applies mentioned in section 14(1)(a)(i) or (ii) where — in relation to services (a) the services were previously supplied by a taxable person who belongs in Singapore to the overseas supplier who subsequently supplied those services to the recipient; and (b) the previous supply of those services to the overseas supplier is a taxable supply that is not treated as a supply of international services under section 21(3).
(2) Despite section 17(3A), the recipient may elect for the value of the reverse charge supply (A) by the overseas supplier to the recipient to be reduced (as may be applicable) — (a) by the value of the services previously supplied that is subject to tax (B); or (b) if B exceeds A, to nil.

5 10 15 20 25 30 35 17 (3) To avoid doubt, section 17(3AA) and (3B) applies in determining A.”.

Amendment of Part I of Fourth Schedule 18.


Part I of the Fourth Schedule to the principal Act is amended by inserting, immediately after paragraph 1A, the following sub-heading and paragraph: 5 “Digital payment tokens 1B.

Supplies of digital payment tokens by way of any of the following: (a) the exchange of digital payment tokens for currency or other digital payment tokens; (b) the provision of any loan, advance or credit of digital payment tokens.”.

Amendment of Seventh Schedule 19.
The Seventh Schedule to the principal Act is amended — “(O 1)” inserting, (a) by after immediately in paragraph 2(1)(b)(i), the words “that would be treated as a supply of international services under section 21(3)(q) if the supply had been made in Singapore”; (b) by inserting, immediately after “paragraph 5(3)(b)” in paragraph 3(2)(c), “or 6(2)(b)”; and the words the words (c) by inserting, immediately after paragraph 5, the following paragraph: “Supplies to registered persons allowed to be treated as that of operator of electronic marketplace 6.—(1) Subject to any conditions imposed by the Comptroller, the Comptroller may, at the request of an operator of an electronic marketplace that belongs in Singapore, grant approval for the operator to be chargeable to tax on the following supplies: (a) for an operator without an election made under paragraph 5(1) — supplies of digital services made by any overseas underlying supplier through the electronic marketplace to a registered person; 10 15 20 25 30 5 10 15 18 (b) for an operator with an election made under paragraph 5(1) — supplies of digital services made by any overseas underlying supplier or any local underlying electronic supplier marketplace to a registered person.
through the is the (1), granted under operator (2) Where a that sub-paragraph then sub-paragraph of digital services made by an overseas underlying supplier or a local underlying supplier (as the case may be) through the electronic marketplace to a registered person is treated as being 2 supplies, namely — supply mentioned approval in (a) a supply of services from the overseas underlying supplier or local underlying supplier to the operator of the electronic marketplace; and (b) a supply of digital services by the operator of the electronic marketplace to the registered person.”.
Amendment of Eighth Schedule 20.

Paragraph 2 of the Eighth Schedule to the principal Act is deleted.

EXPLANATORY STATEMENT This Bill seeks to amend the Goods and Services Tax Act (Cap.

117A).

Clause 1 relates to the short title and commencement.

Clause 2 amends section 2(1) to insert new definitions of “accountant” and “advocate and solicitor”.

Clause 3 inserts a new section 2A to provide for what is a digital payment token for the purposes of the Act.
Clause 4(a), (c) and (d) makes technical amendments to section 14(1).

Clause 4(b) deletes and substitutes sub-paragraph (i) of section 14(1)(a) to provide that reverse charge supplies arise in relation to all recipients belonging in Singapore who are registered or liable to be registered under paragraph 1 or 1B of the First Schedule, except where the supply is to the recipient as an individual in the individual’s private or personal capacity.
Clause 4(e) inserts a new subsection (1A) in section 14 to clarify that the reference in section 14(1)(b) to input tax for which a recipient is not entitled to any 19 credit under section 19, does not include input tax that is excluded from any credit under section 19.

Clause 4(f) makes a consequential amendment to section 14(2) in light of the the fiction created by new section 14(1)(a)(i), and further clarifies that section 14(2) applies only in relation to the reverse charge supply.
Clause 4(g) deletes and substitutes subsections (5) and (6) of section 14 to clarify that a supply of services is treated as a supply of services under section 14(2), where the recipient makes the relevant election to treat himself or herself as a recipient under section 14(1)(a) or to disregard the exclusions in the Eighth Schedule.
Clause 5 amends section 15(7) to clarify that the matters provided for in the regulations are intended only for use by the person supplying Seventh Schedule supplies in determining whether the customer of the person belongs in Singapore.
Clause 6 makes various amendments to section 17 to clarify the intent that the value of a reverse charge supply is the consideration for the supply in fact made that gives rise to the reverse charge supply, with the special cases for determining this value in the new section 17(3AA) and amended section 17(3B).

Clause 7 deletes and substitutes paragraph (b) of section 28A(1) to allow group registration for registered (Seventh Schedule — pay-only) persons.
Clause 8 amends section 30(4)(d) to empower the Comptroller of Goods and Services Tax (the Comptroller) to impose, for purposes of group registration, a condition prohibiting any claim for credit for any input tax of the representative member of the group (including any amount treated as such under section 30).

Clause 9 makes various amendments to section 33 in relation to the appointment of agents by persons who do not have their usual place of residence in Singapore.
The new subsection (1) inserted by clause 9(a) clarifies that an overseas registrant must appoint a section 33(1) agent, unless the overseas registrant is a registered (Seventh Schedule — pay-only) person.

In the latter case, the appointment of such agent is optional.

The new subsections (1A) to (1D) provide for the consequences of the appointment, and the powers of the Comptroller, in connection with the appointment.
Clause 10 amends section 44(1) and (1A) to extend the existing requirements relating to the issuance of receipts to consideration received in digital payment tokens.

Clause 11 makes various amendments to section 56 to remove the requirement for appeals before the Supreme Court to be heard in camera, and to align the section with section 83 of the Income Tax Act (Cap.

134).
134).

20 Clause 12 inserts new sections 62A and 62B to provide for new offences on the part of a customer of a Seventh Schedule supply who belongs in Singapore under section 15 and is not a registered person.

The new section 62A provides for a strict liability offence where false information is given concerning whether the person belongs in Singapore under section 15, or whether the person is a registered person.
For the offence under the new section 62B, the person (X) must have wilfully provided information for the purposes of the supply with the intent of inducing the person making the supply into determining (in accordance with any regulations made under section 15(7) for the purposes of the person making the supply) that X does not belong in Singapore or is a registered person.
For this offence, if X uses a device to make the purchase and there is a mobile country code, an IP address or other information used in connection with the device that identifies the physical location of the device for the purposes of the purchase, then X is taken to have provided information as to that physical location of the device for the purposes of the supply.

Under the new section 62B, the information provided by X need not be false.
For example, X commits an offence if X purchases an online service using a computer whilst in a foreign country and pays for the purchase with a credit card issued to X in that foreign country, if X does so wilfully with intent to induce the supplier into making a determination that X belongs in the foreign country and not in Singapore.

Clause 13 makes a technical amendment to section 64A(2).
Clause 14 amends section 84 to extend the power of the Comptroller to require information to be provided to the Comptroller, to transactions that are not made in the course of or in furtherance of a person’s business.

Clause 15 repeals and re-enacts sections 92 and 93.
The new sections 92 and 93 follow the intent of the existing sections 92 and 93 to provide for transitional matters relating to the charging of tax on overseas services, but allow for the fact that services have been performed under the relevant supplies to be factored in in determining the amount of tax chargeable on the supplies.

The new sections 92 and 93 only deal with the extent to which supplies to which the sections apply are chargeable to tax, and when the tax must be accounted for.
The values of such supplies remain relevant for determining whether a person is liable to be registered in accordance with the First Schedule.

Clause 16(a) and (e) amends various provisions in the First Schedule to remove the need to take into account the value of exempt supplies in determining whether the threshold of $100,000 in value of Seventh Schedule supplies is exceeded.
21 Clause 16(b) makes consequential amendments to paragraph 1B(1)(a) and (b) to and (2)(a) and (b) of the First Schedule in light of the amendment section 14(1)(b) and the new section 14(1A).

Clause 16(c) and (d) amends paragraph 8(1)(a)(ii) of the First Schedule to apply the same treatment to supplies of digital payment tokens that are supplies of international services under section 21(3), as is applied to exempt supplies that may be zero-rated.
Clause 16(f) makes a consequential amendment to paragraph 18(1) of the First Schedule in light of the new section 14(1)(a)(i).

Clause 17(a) amends paragraph 1(1)(c) of the Third Schedule to clarify that the provision does not apply if the tax on the supply to the person is excluded from the credit for input tax by regulations made under section 19.
Clause 17(b) inserts a new sub-paragraph (1A) in paragraph 1 of the Third Schedule to extend the power of the Comptroller in directing the value of a supply to be taken to be its open market value, to supplies giving rise to reverse charge supplies.

Clause 17(c) amends paragraph 11(1) and (1A) of the Third Schedule to extend the existing foreign exchange reporting requirements to any sum relevant for determining value, that is expressed in digital payment tokens.
Clause 17(d) inserts a new paragraph 15 in the Third Schedule to provide for the value of a supply in fact made by an overseas supplier (that gives rise to a reverse charge supply), where the supply in fact made was previously made by a taxable person in Singapore to the overseas supplier, and the previous supply is not treated as a supply of international services under section 21(3).
Clause 18 inserts a new paragraph 1B in Part I of the Fourth Schedule to exempt from tax the exchange of digital payment tokens for currency or other digital payment tokens, and the provision of loans, advances and credits of digital payment tokens.
Clause 19(a) amends paragraph 2(1)(b)(i) of the Seventh Schedule to limit telecommunication services referred to in that provision to those the supply of which would be treated as a supply of international services under section 21(3)(q) if the supply had been made in Singapore.

Clause 19(b) and (c) amends the Seventh Schedule to allow an operator of a local electronic marketplace to account for and pay tax on supplies of digital services made through the marketplace to registered persons.
Unlike the election under paragraph 5 of the Seventh Schedule, approval of the Comptroller is required.

Clause 20 deletes paragraph 2 of the Eighth Schedule so that section 14 applies to services in fact supplied by an overseas supplier to a recipient, which had been 22 previously supplied to the overseas supplier by a supplier in Singapore.
Where the previous supply was a taxable supply not treated as a supply of international services under section 21(3), the new paragraph 15 of the Third Schedule (inserted by clause 17(d)), provides for a concession on the value of the reverse charge supply.

EXPENDITURE OF PUBLIC MONEY This Bill will not involve the Government in any extra financial expenditure.