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Singapore 2023 GST scheme key changesUpdated a year ago

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Effective January 1, 2023 Singapore will be introducing two (2) key changes to its existing GST scheme:

  1. The import GST
    de minimis De minimis is the price threshold below which fewer or no taxes are charged on shipments.
    will essentially go away (going from $400 SGD to $0 SGD), which means GST will be owed on all goods, regardless of value.

    This change is only applicable to retailers who meet the following thresholds:
    • The total value of your annual global turnover for a 12-month period exceeds S$1 million or is expected to reach this amount in the next 12-months. Here’s an IRAS guide to determine how to compute your taxable business turnover.

    • Make B2C supplies of digital services, non-digital services and low-value-goods (below SGD400) to customers in Singapore exceeding S$100,000
  2. Another significant change, also effective January 1, 2023, is that Singapore’s GST rate is increasing from 7% to 8%. Then in January 2024, it will increase from 8% to 9%. This increase applies to everyone, not just retailers who meet the above thresholds.

 


 

Am I Affected?

Businesses shipping to Singapore customers will be required to register as an Overseas Vendor if:

  1. The total value of your annual global turnover for a 12-month period exceeds S$1 million or is expected to reach this amount in the next 12-months. Here’s an IRAS guide to determinehow to compute your taxable business turnover.
  2. Make B2C supplies of digital services, non-digital services and low-value-goods (below SGD400) to customers in Singapore exceeding S$100,000

Once registered for GST, you are required to charge and account for GST on B2C supplies of low-value goods made to Singapore.

 


 

I’m a registered overseas vendor, what’s next?

  1. Eligible companies must display and charge the 8% GST to customers upon checkout. 
  2. Eligible companies who are liable to collect GST at checkout must provide us (Teleport) with their GST or OVR registration number along with the GST payment status on an item level for the items being shipped in your order for customs clearance purposes.

To ease the transition, all registered overseas vendors are required to complete three (3) simple questions which will take no more than 3 minutes of your time. 

Teleport reseller with OVR customers are required to declare all OVR customers via the same form.

 


 

Teleport Upcoming Changes

In view of the upcoming changes, Teleport will be making it mandatory for all GST & Duty amounts of all parcels to be paid before arriving at customs. With this implementation, we’ll be able to significantly reduce the time required for shipments to clear the customs checkpoint.

 

 


 

Frequently Asked Questions

 

Am I subject to the low-value goods (LVG) GST if I am shipping as an individual or a non-registered overseas vendor?

No. Individuals / Non-registered overseas vendors are not subject to the low-value goods (LVG) GST. Nevertheless, the 8% GST will apply for shipments valued over S$400.

Are resellers of Teleport delivery services required to do anything?

Only in the event a reseller is assisting an OVR vendor to ship to Singapore, will the reseller be required to collect the vendor's GST Registration number and identify whether the GST amount has been paid. The information should then be cascaded to Teleport via this form.

Can I opt not to pay for the GST upon placing an order with Teleport?

No. For any unpaid GST / Duty amount will be collected by Teleport to ensure that all parcels clear the customs checkpoint

I'm a registered overseas vendor shipping to a GST-registered business in Singapore, will I be required to pay the LVG GST?

In this situation, the GST registered business in Singapore will bear the GST payable amount. As such, the GST amount declared when placing an order with Teleport should be RM0 and the order should be declared as unpaid.

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