On January 1, 2023, Singapore’s national Goods and Services Tax (GST) will come into force. Singapore-based consumers must pay GST on goods valued at S$400 or below. Low-value goods, or LVG, are those that are imported into Singapore via air or post that don’t exceed the value of S$400.
–
READ MORE: Registering for the IOSS
–
Non-Singapore-based suppliers of low-value consignments are required to register for GST in Singapore, in case they:
- Ship B2C Low-Value Goods to Singapore exceeding SGD100,000.
- Have a yearly global turnover of more than SGD1 million.
Reverse Charge for B2B Imports of LVG.
A reverse charge should be performed on low-value items by a GST-registered customer subject to it (referred to as an “RC business”). All low-value goods must be reverse charged, including low-value items bought from domestic and international suppliers, operators of electronic marketplaces, and redeliverers, regardless of whether they are GST-registered.
Shipping to Singapore
The Inland Revenue Authority of Singapore requires shippers to provide this GST number on the CN22/23 label as well as in any invoices or other business documents attached to the outside packages and other items.
Parcels must have a sign indicating if the GST has been paid. (Only consignments below SGD400 should be GST-paid. The current practice of the items being charged GST after they arrive in Singapore is in effect for goods costing more than SGD400.)
Subscribe to our blog and visit our website and LinkedIn page for more updates. You can also reach out to us by sending a message to info@mydutycollect.com. We will be delighted to hear from you.
