From January 2023, Singapore will introduce GST on imported sales of low-value goods and non-digital services to consumers at a rate of 8%.
Since 1 January 2020, there has been a requirement for non-resident vendors supplying digital services to consumers to register for GST and charge this at a rate of 7% on their sales. This is subject to the non-resident supplier, within a 12-month period, exceeding a global turnover threshold of S$1 million (approx. £586,000) and making supplies to non-GST registered customers within Singapore at a value over S$100,000 (approx. £59,000).
From 2023, the Singaporean government will extend this requirement to include sales of low-value goods and non-digital services, which do not require the customer to be physically located where the services are performed (such as online counselling, training, or coaching services). They will also increase the GST rate in the country from 7% to 8%.
This is to remove the unfair advantage given to businesses outside of Singapore over resident providers making these types of supplies. It will force non-resident businesses, who can currently take advantage of the import GST exemption for imported goods under a value of S$400 (approx. £230) or sell non-digital services without the need to charge GST, into registering with the Singaporean tax authorities to start charging GST at 8% on their supplies subject to the thresholds stated above.