What benefits are in store if I use zero-GST warehouses?
MY SUPPLIER tells me that I can save on GST by storing my goods in zero-GST warehouses.
What are zero-GST warehouses? Can all my goods be stored in these warehouses?
Zero-GST (ZG) warehouses are designated areas approved by the Singapore Customs for the storage of imported goods with GST suspended.
As a general rule, you can store any goods, except dutiable goods, locally-acquired or locally-manufactured goods and GST-paid goods.
The main advantage is that the goods and services tax is suspended in ZG warehouses until the goods are removed from the premises and moved into the local market for consumption.
In addition, the movement of goods between ZG warehouses does not attract GST.
There are three licence types to choose from, according to your business needs:
Type I: At least 80 per cent of the goods imported and stored in the ZG warehouses are re-exported.
Type II: There is no requirement that imported goods must be re-exported.
However, you can only operate from a single ZG warehouse. You must have a computerised inventory system with track and trace capabilities and good internal controls for stock accountability.
Type III: There is no requirement that imported goods must be re-exported.
You can store your goods in multiple ZG warehouses and goods can be moved between such warehouses under the same licence.
You must be financially sound, have a computerised inventory system with track and trace capabilities and good internal controls for stock monitoring and accounting.
