Singapore Set for Goods and Services Tax

Singapore’s national Goods and Services Tax (GST) will take effect on January 1, 2023. Consumers in Singapore will need to pay GST on goods valued at S$400 or below (“low-value goods” or LVG), which are imported into Singapore via air or post and purchased from GST-registered suppliers. As a result, all suppliers of low-value goods that are not based in Singapore are required to register for GST in Singapore if they:

• send business-to-consumer (B2C) supplies of low-value goods to Singapore exceeding SGD100,000.

• have an annual global turnover exceeding SGD1 million; and

SingPost notes: “While this change does not impact designated operators of Union member countries directly, senders of international postal items containing goods (including vendors, suppliers or marketplaces) fulfilling the above conditions are liable for GST registration in Singapore. If they are GST-registered, they are required to charge and account for GST on B2C supplies of SVG to Singapore.”

The Inland Revenue Authority of Singapore expects shippers to print this GST number on the CN22/23 label and/or in the invoice or commercial document affixed to the exterior of the parcel or item. They should put an indicator beside each item on whether the item has the GST paid. (Only items <SGD400 should have the GST paid. For items above SGD400, the current practice of the items being charged GST when they arrive in SG applies.) There is no requirement for USPS to transmit the GST registration number in ITMATT. Indications will be printed on the CN22/23 labels.

See the tax authority's website for more information.