Singapore’s 2023 Regulatory Changes: Know the Rules to Avoid Shipping Delays
●Register for a Singapore Goods and Services Tax (GST) number as an overseas vendor.
●Charge GST on eligible low-value goods (up to SGD 400) when consumers make a purchase.
●File regular GST returns with the Singapore tax authority and pay the tax due.
The new rules apply only to e-commerce platforms (overseas vendors) that meet the following minimum thresholds:
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Global annual sales of more than SGD 1 million.
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Annual sales of low-value goods (LVG) to Singapore of more than SGD 100,000.
If an e-commerce platform (overseas supplier) does not meet the minimum thresholds for the two criteria above, the low-value exemption still applies (as under the current process).
What does this mean for shippers?
>If an e-commerce platform selling to and shipping goods to individual consumers in Singapore (overseas supplier) meets the minimum thresholds set by the Inland Revenue Authority of Singapore (that is, annual global turnover exceeds SGD 1 million, and annual sales of low-value goods to Singapore exceed SGD 100,000), it must provide the following additional information, where applicable:
- OVR GST number: Include the overseas vendor's (OVR) Singapore Goods and Services Tax (GST) registration number on the commercial invoice when shipping via DHL.
- OVR GST payment indicator: In addition, indicate in the commercial invoice details whether GST on low-value goods was collected at the time of purchase.
>>To ensure smooth customs clearance and a good experience for end customers, e-commerce platforms (overseas suppliers) selling low-value goods to Singapore must provide complete and accurate commercial invoice data through DHL Express electronic shipping solutions.
How can shippers avoid delays?
>To avoid delays, shippers sending goods to Singapore from other parts of the world should:
√Understand the changes to Singapore's GST regulations and review whether the policy applies to their business.
√Update their systems to charge GST on low-value goods (up to SGD 400) sold to Singapore.
√Inform Singapore consumers (end customers) about the regulatory changes.
√Provide complete and accurate commercial invoice data electronically through DHL Express electronic shipping solutions.
Note:
Violations of the Inland Revenue Authority of Singapore’s regulations may result in the following consequences:
●Shipments may be delayed.
●Goods may be held in a bonded warehouse.
●Double taxation may occur if GST is charged again upon import.
●The Inland Revenue Authority of Singapore may impose a fine.
For more information about regulatory policy updates, please visit the Inland Revenue Authority of Singapore (IRAS) website (https: //www. iras. gov. sg/taxes/goods -services-tax-(gst) ) or email GST@iras. gov. sg
Disclaimer:Although we have made every effort to ensure that the information contained herein is obtained, compiled, and processed from reliable sources, we make no express or implied warranties regarding its accuracy, adequacy, completeness, legality, reliability, or availability. All information contained in this article is provided on an “as is” basis. Under no circumstances shall DHL Express or its affiliated partners and companies within Deutsche Post DHL Group, or their partners, agents, or employees, be liable for any decisions made or actions taken by you or anyone else based on this information, or for any indirect, special, or similar damages, even if the possibility of such damages has been advised.
