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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e-commerce goods GST exemption withdrawn 2023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

Comments (click for details) Rate Date Threshold Comments
Australia 10% Jul 2017 AUD $75,000
Azerbaijan 12% Jan 2017
Armenia 20% Jan 2022 AMD 115million
Bangladesh 5% - 15% Jul 2019 B2B and B2C
Bhutan 7% Jul 2021 Nu 5million
Cambodia 10% Mar 2022 KHR 250m
China 6%-13% N/a Nil Withholding VAT; B2B and B2C
Fiji 9% TBC FJD 300,000
India 18% Jul 2017 -
Indonesia 11% Aug 2020 IDR600m or 12k customers
Japan 10% Oct 2015 JPY 10 million
Kazakhstan 12% Jan 2022 Nil
Kyrgyzstan 12% Jan 2022 Nil
Laos 7% Feb 2022 LAK 400m
Malaysia 6% Jan 2020 RM500,000
New Zealand 15% Oct 2016 NZD 60,000
Pakistan 2% Sep 2021 Nil Marketplace Withholding VAT
Philippines 12% TBC P 3million
Singapore 7% Jan 2020 S$ 100,000
South Korea 10% Jul 2015 Nil
Taiwan 5% May 2017 NTD 480,000
Tajikistan 18% Jan 2021
Thailand 7% Sep 2021 1.8m Baht
Uzbekistan 15% Jan 2020 Nil
Vietnam 10% Dec 2020

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