Singapore ends GST exemption on e-commerce 2023

Low-value SG$400 consignment stock relief GST exemption scrapped; traditional services B2C also liable

Singapore Gazetted this month its Goods and Services Tax (Amendment) Act 2021. This will withdraw the current SG$ 400 threshold on Goods & Services e-commerce B2C imports from 1 January 2023. This does not include digital services. This has been liable since January 2020. Singapore is also extending the tax net to non-digital services to consumers.

e-commerce goods GST exemption withdrawn 2023

Non-resident providers and facilitating marketplaces will be able to use a simplified GST registration process. This will not allow the claiming of local GST suffered. The existing overseas vendor registration (OVR) for B2C and reverse charge (RC) regimes for B2B to cover low-value goods imported via air or post.

The removal of the low value consignment stock relief, as termed in Europe, is a common trend across the world. Australia, New Zealand, with Malaysia looking at 2023. Norway have already implemented this. The European Union ecommerce VAT package implemented similar changes in July 2021 and the UK in January 2021..

GST on non-digital services Jan 2023

At the same time, Singapore is implementing GST on foreign providers of traditional services (i.e. non-digital)  to its consumers. This would include: non-automated educational learning; fitness training and wellbeing; and telemedicine. Singapore GST on digital services came into effect January 2020.

At the same time as announcing the e-commerce GST change, the government indicated that GST will rise from the current 7% to 9% sometime between 2022 and 2025.

You can check the e-commerce VAT calculations on individual or batch transactions with our Advisor and Auditor services.

Asia Pacific VAT on digital services