Have you registered for GST in Singapore yet?
If your digital services business has not registered for GST in Singapore as yet, time is ticking.
More than 100 overseas digital service providers have registered for goods and services tax, reported the Inland Revenue Authority of Singapore on Monday 9th December 2019. The rush of companies to register is ahead of the Singapore legislation introduced on GST for Imported Digital Services kicking in on January 1st 2020.
As reported in Straits times, the Overseas Vendor Registration (OVR) regime levels the playing field in GST treatment for both local and overseas services, Iras said.
Similar measures have also been adopted by countries like Australia, Japan, New Zealand and South Korea from as early as 2015, it noted.
Digital services are those provided over the Internet or an electronic network.
Common examples include downloadable digital content such as mobile apps and movies, software programs and subscription-based media such as Netflix.
Overseas providers with a yearly global turnover of more than $1 million and sell more than $100,000 worth of digital services to Singapore customers in a 12-month period are required to register for GST and charge GST to their customers.
The prices of these digital services will be inclusive of GST from Jan 1, 2020, when sold to individuals and non-GST registered businesses.
There are no changes in GST treatment for online purchases of goods. Iras said that GST needs to be paid for all goods imported except those valued at less than $400.
vatglobal is able to help your business register for GST in Singapore and avoid penalties further down the line. To book a free consultation, email firstname.lastname@example.org.