Since 1 January 2023 Singapore introduced VAT on Low-Value Goods(LWG) for remote sellers.
VAT Standard rate
The standard VAT rate in Singapore in 2023 is 8%.
VAT Reduced rate
There are no reduced rates in Singapore.
Exempt supplies
Supplies that are exempt from GST are:
- the provision of financial services;
- the supply of digital payment tokens;
- the sale and lease of residential properties;
- the import and local supply of investment precious metals.
Threshold
There are two criteria for sellers to be registered for GST in Singapore:
- the first is a distant sales threshold is 100,000 Singapore dollars for goods sold to Singapore This amount includes the value of B2C LVG supplies and remote services supplied to Singapore;
- the second is a global revenue – of 1 million Singapore dollars.
That means that for non-Singapore businesses VAT registration obligation starts when both criteria are reached.
Deductible VAT
Overseas Sellers are registered under a simplified pay-only scheme (OVR). That means input tax is not deductible on taxable purchases made in Singapore. This scheme features simplified GST reporting and documentation requirements.
Low-value goods
An item with an intrinsic value of less than 400 Singapore dollars (approx. 300 USD) is a Low value good. An order may consist of several LVG items or LVG and non-LVG items. LVG goods are considered as LVG even when the intrinsic value of the parcel exceeds 400 Singapore dollars. Intrinsic value is a price that excludes insurance and freight costs when charged separately.
Registration procedure
Business is required to apply for GST registration within 30 days:
- after the end of the year 2022 when two thresholds are exceeded in 2022;
- or when in a current calendar year threshold is reached.
Documents required:
- director ID;
- certificate of Incorporation, officially translated into English and notarized.
Foreign business is not required to appoint a local nor is required to provide a security deposit.
VAT payment date
The due date for GST payment is within one month from the end of each quarter, but note that the date is considered as a date when tax authority received the money. We recommend paying 3-7 days before the deadline.
Filing VAT returns
The due date for GST return is within one month from the end of each quarter.
Penalties
A late submission penalty is $200 is imposed immediately once the GST return is not filed by the due date. A further penalty of $200 is imposed for every completed month that the GST return is not filed.