IRAS issues revised GST e-Tax guide for Investment Precious Metals

5 April 2013

The e-Tax guide “GST: Guide on Exemption of Investment Precious Metals (IPM)” was revised on 1 April 2013.

The following amendments have been made:

1. Minor editorial amendments have been made to Paragraphs 2.6, 6.8 and 7.5 with no impact on the content.

2.Paragraph 4.7 has been amended to specifically exclude “proof, numismatic or collector’s version” coins from coins that qualify as IPM. It also adds the “United Kingdom Britannia” in the lists of qualifying gold and silver coins in Paragraphs 4.7(a)(x) and 4.7(b)(ix) respectively.

3. Paragraph 4.8 has been amended to elaborate on “proof, numismatic or collector’s version” coins and why they do not qualify as IPM.

4. Paragraph 4.2(b)(iii) has been amended to include contact information for refiners that wish to obtain IE endorsement.

5. Paragraph 4.2(c) has been amended to elaborate on how to identify a mark or characteristic that is internationally accepted as guaranteeing the quality of an IPM.

6. Paragraph 4.2(d) has been amended to elaborate on how to satisfy the criterion of ” [trading] at a price based on the spot price of the precious metal [the IPM] contains”.

7. Paragraph 6.7(v) has been amended to clarify that the description of the IPM supplied must be for each IPM bar, ingot or wafer and IPM coin.

8. Paragraph 5.4 has been added to instruct that businesses under the Major Exporter Scheme (MES) should not declare ME permit for importation of IPM.

9. Paragraph 7.4 has been added to cover the GST treatment of the purchase and delivery of materials (eg scrap gold and other non-IPM) to a LBMA or LPPM accredited refiner for refining into IPM under the toll refining model. Example 1 has also been included to illustrate the treatment.

10. Appendix A has been added to provide a sample invoice for an exempt sale of IPM.

As a result of the above changes, certain paragraphs have been re-numbered and new footnotes have been added.

More details can be found on the IRAS website.

Source: This article was extracted from the Inland Revenue Authority of Singapore (IRAS) website.