What tax advantages does the Singapore Zero-GST Warehouse Scheme offer?

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Singapore Zero-GST Warehouse Scheme Offers Tax Suspensions on Imported Goods

The Singapore Zero-GST Warehouse Scheme provides significant tax advantages by suspending both Goods and Services Tax (GST) and import duties on non-dutiable goods stored within designated bonded warehouses. This scheme allows approved companies, such as Whisky Hammer, to store imported items like spirits indefinitely without incurring these taxes at the point of import. The tax liability is deferred until the goods are intended for local consumption within Singapore.
GST and Duties Suspended During Storage

Under the Zero-GST Warehouse Scheme, approved businesses can store imported non-dutiable goods, including spirits such as whisky, for an indefinite period in licensed premises. A key benefit is the suspension of GST and import duties on these goods while they remain in the bonded warehouse. This means that companies like Whisky Hammer can receive shipments from overseas, such as Scotland, and store them in Singapore without immediate tax obligations.
Tax Benefits for Duty-Free and Export Transactions

Customers purchasing goods under this scheme, particularly for transit or export, experience direct tax savings. For instance, when bottles are collected or delivered at Changi Airport as part of a duty-free liquor concession, customers are not required to pay GST or import duties. This facilitates seamless transactions for international travellers or those exporting goods, as the taxes are only levied if the goods are eventually intended for local delivery and consumption within Singapore.
Deferral of Tax Liability for Local Delivery

The GST and duties are only payable if customers choose to have their purchases delivered locally within Singapore. This structure effectively defers the tax burden, offering flexibility and cost-effectiveness for businesses and collectors who may be storing goods for extended periods or for eventual onward shipment rather than immediate local sale. The scheme is designed to support Singapore's role as a trade and logistics hub by facilitating the storage and movement of goods.

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What tax advantages does the Singapore Zero-GST Warehouse Scheme offer?

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