From 1 January 2023, the Inland Revenue Authority of Singapore (known as IRAS) will require e-commerce platforms that sell and ship to individual consumers in Singapore (known as Overseas Vendors – OVRs):
– Apply for Singapore Goods and Services Tax (GST) registration number for overseas suppliers.
– Goods and Services Tax (GST) is levied on eligible low-value goods (up to S$400) when consumers purchase goods.
– Submit GST returns to the Singapore Inland Revenue Authority of Singapore and pay taxes regularly.
The new rules only apply to e-commerce platforms (overseas suppliers) that meet the following minimum standards:
- Global annual sales exceed S$1 million.
- Annual sales of low-value goods (LVG) to Singapore exceeding S$100,000.
- If the e-commerce platform (overseas supplier) does not meet the minimum standards of the above two elements, the low value exemption still applies (same as the existing process).
What does this mean for shippers?
- If an e-commerce platform (overseas supplier) that sells and ships to individual consumers in Singapore meets the minimum standards set by the Singapore Inland Revenue Authority of Singapore (i.e. annual global sales exceeding S$1 million and annual sales of low-value goods into Singapore exceeding S$100,000), the following additional information must be provided (if applicable):
- OVR GST Number: When shipping via DHL, include the Overseas Supplier (OVR) Singapore Goods and Services Tax (GST) registration number on the commercial invoice.
- OVR GST Payment Mark: In addition, it should be stated in the commercial invoice details whether GST on low value goods is charged at the time of purchase.
How can shippers avoid delays?
To avoid delays, shippers shipping to Singapore from other parts of the world should:
- Understand the changes in Singapore's GST regulatory policy and review whether the policy is applicable to their business.
- Update the system to collect GST on low-value goods (up to S$400) sold into Singapore.
- To educate consumers (end customers) in Singapore about regulatory changes.
Notice:
Violations of IRAS regulations may result in the following consequences:
– Shipping may be delayed.
– Goods may be held in bonded warehouses.
– If GST is levied again at the time of import, double taxation may occur.
– Fines may be imposed by the Singapore Inland Revenue Authority of Singapore.
For more information on regulatory changes, please visit the Inland Revenue Authority of Singapore (IRAS) website (https://www.iras.gov.sg/taxes/goods-services-tax-(gst)) or send an email to GST@iras.gov.sg
This message comes from DHL
English 
Chinese