Singapore GST Update – Low Value Goods and Remote Services
With effect from 1 January 2023, GST will apply to low-value goods and remote services. This will be effected through the extension of the overseas vendor registration (OVR) regime to Business-to-Consumer (B2C) supplies of low-value goods and non-digital services.
The current import GST relief for goods imported by post or air (excluding intoxicating liquors and tobacco) with a total Cost, Insurance and Freight (CIF) value not exceeding S$400 will still remain.
Digital services which are currently subject to GST will remain taxable under the extended OVR regime. Consequently, from 1 January 2023, all B2C supplies of imported remote services, whether digital or non-digital, will be taxed by way of the extended OVR regime.
- Non-dutiable goods, or dutiable goods that are granted GST import relief by Singapore Customs,
- Not exempt from GST,
- Imported via air or post, and
- Value does not exceed $400
Remote Services (Digital and Non-Digital Services)
- Services which do not require the customer to be physically located where the services are performed
- Imported digital services subject to GST since 1 January 2020:
- Downloadable digital content
- Subscription-based media
- Software programmes
- Electronic data management services
- Imported non-digital services subject to GST w.e.f. 1 January 2023:
- Live interaction with providers of educational learning
- Fitness training
From 1 January 2023, if you are a consumer in Singapore, you will need to pay GST on goods valued at S$400 or below (“low-value goods”), which are imported into Singapore via air or post (“imported low-value goods”) and purchased from GST-registered suppliers.
Currently, low-value goods which are procured locally are subject to GST, while the same goods which are procured from overseas and imported via air or post are not. The change is intended to achieve a level playing field in GST treatment for all goods consumed in Singapore, whether procured locally or from overseas.
There is no change to the GST treatment for goods imported via sea or land as well as goods valued above S$400 which are imported via air or post. You will need to pay GST at the point of importation of such goods.
From 1 January 2023, you will also need to pay GST on supplies of imported non-digital services purchased from GST-registered overseas service providers. Digital services which are currently subject to GST will remain taxable. This means that all supplies of imported services, whether digital or non-digital, which can be supplied and received remotely will be subject to GST.
If you are a GST-registered business selling goods stored outside Singapore to customers in Singapore, the implications summarised below will be applicable to you, with the implementation of the OVR regime from 1 January 2023:
|Current||From 1 Jan 2023|
|Location of |
|Transaction||GST treatment||Transaction||· GST treatment|
|Goods located outside Singapore||Sales of such goods to customers in Singapore||No GST needs to be charged, as such sales are outside the scope of GST||(a)||Direct sales of low-value goods to customers who are not GST-registered in Singapore||· Charge GSTnew!|
|Import GST is payable by customer if goods are imported by sea/land or CIF value exceeds $400 for goods imported by air/post||(b)||Direct sales of low-value goods to GST-registered customers||· Not required to charge GST, if customers provide their GST registration numbersnew! |
· If GST was wrongly charged, you should refund the GST to the
|(c)||Sales of low-value goods through marketplaces/ redeliverers to customers in Singapore||· Not required to charge GST|
|(Electronic marketplace/ redeliverer is responsible for charging and |
accounting for GST)
|(d)||Sales of goods > $400 imported by air or post or goods imported by land or sea to customers in |
|· Not required to charge GST |
· Import GST payable by importer
|Goods located in Singapore||Sales of such goods to customers in |
|Charge GST||(e)||Sales of goods to customers in Singapore (directly or through |
|· Charge GST|
|Export of such |
|Zero-rated (GST @ |
|(f)||Export of such goods||· Zero-rated |
(GST @ 0%)