2023 Changes to Singapore Goods and Services Tax
EasyPost would like to inform you that effective January 1st, 2023, Goods and Services Tax (GST) will apply to goods imported by air or post with an invoice valued at S$400 or below (also known as low-value goods) purchased by consumers in Singapore.
An overseas supplier, Electronic Marketplace Operator (EMO), or re-deliverer will be liable for GST registration with Inland Revenue Authority of Singapore (IRAS) if they meet the sales turnover threshold of goods or non-digital services as follows:
- Have an annual global turnover exceeding S$1 million; and
- Supplies B2C low-value goods into Singapore exceeding S$100,000 over a period of 12 months, either on a:
- Retrospective basis—when your global turnover and value of B2C supplies of low-value goods and remote services to Singapore for the calendar year (i.e. 1st of Jan to 31st of Dec) exceeds S$1 million and S$100,000 respectively, or
- Prospective basis—when you reasonably expect the value of your global turnover and B2C supplies of low-value goods and remote services to Singapore to exceed S$1 million and S$100,000 respectively for the next 12 months.
This will ONLY impact businesses selling directly to consumers in Singapore (B2C) and not those selling to other GST-registered businesses (B2B). After the registration of GST with IRAS, you may then charge and account for GST on B2C supplies of low-value goods made into Singapore.
From January 1, 2023, those shipping low-value goods to consumers in Singapore will be required to provide an active GST registration number on the commercial invoice of their shipment and indicate if GST had been paid for each of the items in the shipment by their consumer at point of sale to prevent GST from being collected at the time of import again.
If the relevant GST information is not furnished, the carrier may treat the goods as GST payable, which would result in double taxation if GST had already been charged to the consumer prior.
The GST registration number is similar to how other Merchant Tax IDs (IOSS, UK, Australia, etc.) are handled and should be inputted in the field “taxId” or “taxIdType.”