Specialized Warehouse Scheme (SWS)
The Specialised Warehouse Scheme (SWS) benefits warehouses storing goods for export, enabling zero-rating of qualifying services to overseas persons.
Purpose
The Specialised Warehouse Scheme (SWS) applies to warehouses that provide specialised storage facilities to overseas persons, and most of the goods they store will eventually be exported.
“Approved Specialised Warehouses” (ASWs) are warehouses approved under SWS.
Benefits of SWS
SWS facilitates zero-rating of:
- Qualifying services (e.g. storage, auction, brokering, valuation services) provided to or directly benefit overseas persons on qualifying goods (e.g. works of art, antiques, precious metals, stones) stored in ASWs.
Upon implementation of reverse charge from 1 Jan 2020, you may also zero-rate qualifying services supplied to an overseas person when the qualifying services “directly benefit” GST-registered Singaporeans.
- Overseas persons can rent/tenant/license storage space in an ASW.
It also includes providing ‘private storage units’, which are generally considered goods for GST purposes. ASW operators can zero-rate private storage units.
Qualifying for SWS
SWS is available to operators of zero-GST or licensed warehouses predominantly used for storing qualifying goods.
Other eligibility requirements include:
- In the warehouse, most of the goods (at least 90%) are qualifying goods stored for overseas persons.
- The warehouse must serve a majority of overseas customers (at least 90%);
- Qualifying goods (at least 90%) removed from the warehouse for overseas persons are mostly for export.
GST approval will be granted warehouse-by-warehouse by the Comptroller of GST.