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Chapter 5 | Income


Exempt Invoice

A GST-registered supplier can zero-rate the supply of goods and services if the supply involves the export of goods out of Singapore or if the services fall within the description of “international services” under Section 21(3) of the GST Act.

Common examples of zero-rated supplies include the export of goods, sale of air tickets and international freight services.

The value of the zero-rated supply must be reported in the GST return

Different types of Exempt supply

There are two types of exempt supply

  1. Regulation 33 Exempt supplies
  2. Non-regulation 33 Exempt Supplies

I will briefly explain what this means:

Regulations 33 Exempt supplies refers to specific categories of supplies specifically listed in Regulation 33 of the GST Act. Common examples include:

  1. Interest income received from deposit of money in a financial institution in Singapore;
  2. Absolute value of net realised exchange gain or loss;
  3. Interest charged to customers that purchase goods or services on credit;
  4. Interest income received from bonds

No GST is chargeable on exempt supplies as they are specifically exempted from GST.

Non- Regulation 33 Exempt supplies refers to exempt supplies which are not specifically listed. Common examples include the sale and lease of residential properties, and the supply of financial services as prescribed in the Fourth Schedule of the GST Act.

Let us now see How to raise a Exempt Scheme Invoice using Reach Accounting Software

  1. Click on Income in the top tab menu and choose Invoice
  2. Click on Add Invoice
  3. The first tab will prompt you to choose the type of Invoice you choose to raise; Choose Exempt supply Invoice. Choose the appropriate tax Invoice template
  4. Now choose whether this is a Regulation or a Non Regulation Supply
  5. The Invoice voucher entry is divided into three sections:
    • The first section allows you to fill the basic Invoice details like date, terms, currency and due date
    • The second section allows you to choose the products, description, quantity and value
    • The final section allows you to enter dispatch details and set reminders for payment followup
  6. Fill the details appropriately
  7. Once done, you have to option to save the Invoice
  8. On saving the Invoice Reach Software will automatically prepare the Exempt supply Invoice
  9. The daybook, ledgers, trial balances and financial statements are automatically posted and prepared
  10. It will also auto-populate the relevant tax codes in the GST forms so you will not have to prepare them manually later.