GST: A Guide on Exports (Eleventh Edition) - IRAS

A GUIDE ON EXPORT – EXTENSION OF THE 60-DAY RULE
9.2 Construction and supply of oilfield and gasfield equipment
A supplier of customized oilfield / gasfield equipment may enter into an agreement
with its overseas customer to supply such equipment. Substantial amount of time
is required to complete the construction of such equipment and he may
progressively bill his overseas customer before the equipment is exported.
Such supplies can qualify for zero-rating if the following conditions are met and
documents are maintained:
(I)
Conditions:
(a)
(b)
The contract for supplying gasfield / oilfield equipment must be
signed with an overseas customer not belonging in Singapore;
The contract must be for the supply of goods, which are:
(i)
customised design based on specifications by the overseas
customer;
(ii) for the purpose of incorporation or installation onto the oil rig /
platform / vessel / topside situated outside Singapore; or
export as part of the oil rig / platform / vessel / topside from
Singapore.
(c)
(d)
The overseas customer may be invoiced progressively subject to
the terms as specified in the contract. However, the first progress
billing to the final billing, and the export of the gasfield / oilfield
equipment should all occur within the contract period or a 3-year
period, whichever is earlier;
At the end of the contract, the total value of the progress billings
must be able to reconcile with the total value of each contract with
the overseas customer (if there are any change in orders /
amendments, documents must be maintained to prove this).
(II)
Documents to be maintained:
At the point
of progress
billing
Goods incorporated or installed onto the oil rig / platform /
vessel / topside situated outside Singapore
(a)
(b)
(c)
(d)
Written contract or purchase order or correspondence with
the overseas customer on the supplies;
Instruction from the overseas customer to deliver the
equipment overseas;
Sales invoice to overseas customer;
Evidence of each payment received from the overseas
customer.
37