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Singapore – Jan 2023 B2C 8% GST on low-value goods and non-digital services

Extension of GST from digital services to low-value consignments and traditional services provided by Overseas Vendors

Non-resident providers (‘Overseas Vendors) of low-values goods and non-digital services to Singaporean consumers will be liable to charge, collect and remit Goods and Services Tax from 1 January 2023.  For Overseas Vendors above the registration threshold, the special registration portal is open from 1 October 2022.

Singaporean GST is currently 7%. But it will rise to 8% from 1 January 2023.

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e-commerce low-value goods GST exemption withdrawn January 2023

Overseas vendors 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.

Which goods and services liable to GST?

Supplies of digital services are already subject to GST since 2020. But 2023 will see the following become liable to GST:

  1. Import consignments of goods sold to consumers (low-value goods) not exceeding S$400. Consignments above this limit are still subject to import GST instead; and
  2. Non-digital services (e.g. online training or coaching) where the customer is not necessarily located where the services are performed

Singapore GST registration thresholds

There is an annual GST threshold, as follows:

  • Global turnover exceeding S$1 million (about US$ 710,000) ; AND
  • Local supplies above S$ 100,000 (combing B2B and B2C supplies of goods and services).

Business exceeding these thresholds may start to GST register from 1 October 2022.

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