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.
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.
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.
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.
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.
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.
- 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.
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.