Major exporters can improve their cash flow by deferring Goods and Services Tax (GST) on goods imported mainly for re-export.

For who?

• For GST-registered traders who import goods into Singapore for the main purpose of re-export.

For what?

• Without MES, exporters have to pay GST when the goods are imported and subsequently claim GST back from the Inland Revenue Authority of Singapore (IRAS).
  
  
• Under MES, exporters do not have to pay GST on import. They only need to charge GST when the goods are sold in Singapore.

How much?

• MES helps the company ease cash flow by deferring GST payment on imports. If the company qualifies for MES, the amount of GST saved will depend on the volume of imports made by the company.

Things to note

• MES status is given to exporters for up to a period of 3 years. Renewal is subject to approval.
  
  
• At least 51% of the goods you sell must be for export purposes.

For more info

Major Exporter Scheme (MES)
Inland Revenue Authority of Singapore (IRAS)