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Singapore: New GST on imported services and low value goods

Singapore will impose GST on low value goods valued up to S$400. 

Under current regulations, low value goods imported by air or post are not subject to GST. From January 2023, low value goods will no longer be eligible for import relief. 

The new GST rules could thus have important consequences for ecommerce retailers that sell to customers in Singapore. 

Deputy Prime Minister Heng Swee Keat said that the new GST charges will “ensure a level playing field for our local businesses to compete effectively”.

GST on non-digital services

In line with its efforts to create a level playing field for local and nonresident business, Singapore implemented GST on digital services in 2020. 

Singapore will now also levy GST on non-digital B2C imported services. 

The changes will affect businesses that provide online services to customers in Singapore that involve human interaction. 

In short, all remotely supplied imported B2C services will be subject to GST under the new rules.

Businesses must register for Singapore GST if they exceed the prescribed threshold. It is advisable to seek expert advice on precisely when you need to register for GST in Singapore

Digital services VAT: a global norm?

Ecommerce and digital platforms have made it easier than ever for companies to sell goods and services to customers in multiple counties.

Global regulators are therefore scrambling to keep up with technological change. An ever-increasing number of countries are introducing regulations to ensure nonresident providers do not have a competitive advantage over resident businesses that are required to account for VAT.

Researchers believe that more countries will therefore continue to adopt new frameworks for VAT on digital goods and services.

Ensure you are always 100% VAT compliant

If you sell goods or services online, you probably have VAT obligations in one or more countries. Global VAT compliance can be extremely complex. Fortunately, Vatglobal’s technology-driven VAT solution makes it easy and cost-effective to meet your global obligations and to rapidly adapt to change. Get in touch with Vatglobal for an elegant solution to the complex problem of VAT compliance. 


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