Asia/Pacific News
Singapore: Tax-Free Bunkers Only for Direct Supply to Foreign-Going Ships
Bunker fuel sold in Singapore is tax-free only if it is delivered directly to a vessel bound for another country, the Inland Revenue Authority of Singapore (IRAS) explained in newly issued guidance for the industry.
"You can zero-rate the supply of bunker fuel delivered in Singapore if you deliver or arrange for your supplier to deliver the fuel directly on board a vessel which is bound for a destination outside Singapore i.e. foreign going vessel," the guidance said.
"You cannot zero-rate the supply to your customer [if] you will not deliver the fuel directly on board the foreign going vessel."
IRAS said a supplier providing bunker to a third party for delivery to a foreign-going vessel cannot be certain that all the fuel will be delivered.
To receive the zero rate, the authority said, a supplier must have a purchase order from the customer indicating the vessel name, date of departure, and next destination; written instructions from the customer to deliver the fuel to the vessel; a sales invoice to the customer; a bunker delivery note endorsed by the vessel's master or chief engineer; and evidence of payment from the customer.
Singapore authorities have been cracking down on bunker fraud in an effort to protect the port's reputation.
