On or about 26 August 2019, the Inland Revenue Board of Singapore (IRAS) has released the second edition of the e-Tax guide, GST: Taxing imported services by way of an overseas vendor registration regime. It replaces the first edition published on 4 February 2019.
The guide incorporates the following updates:
- new section on concession for local electronic marketplaces to account for GST on B2B supplies made by suppliers through the marketplace
- amended the prospective basis to remove examples that may not be relevant for Overseas Vendors
- added a note on the relevant 12-month period for prospective registration liability occurring before 1 January 2020:
- added details on the features of the simplified pay-only regime: GST registration application process
- group registration process and requirements
- highlights that the Overseas Vendors registered under the simplified pay-only regime are required to charge and account for GST on all taxable supplies
- footnote to highlight the specific boxes available under the simplified pay-only regime
- additional details to clarify how errors made in GST returns should be corrected
- footnote edited for clarity on the process to claim bad debts.
- new section on reporting requirements for digital services made to non-GST registered customers in Singapore
- amended content on the transitional rules for discrete supplies of digital services for greater clarity
- amended content on the transitional rules for continuous supplies of digital services for greater clarity
- new addition to clarify when a discrete/continuous supply straddling 1 January 2020 should be reported
- new addition on the transitional rules and concessions applicable for discrete supplies of digital services where invoice is issued on or after 1 January 2020
- new addition information on penalties for misrepresentation by customers
- added details to the FAQs
- amended paragraph 15.2 for greater clarity.
- added paragraphs 15.4, 15.5 and 15.6 to highlight other common questions/ scenarios.
- amended Annex A to highlight that only cross-border telecommunication services are excluded from the scope of digital services, and
- amended Annex B to highlight implications of digital services made by overseas establishments to customers in Singapore.
- amended Annex C to add scenarios for transactions straddling 1 Jan 2020 with suppliers’ invoices issued on/ after 1 Jan 2020.
- added Annex D to illustrate the transitional rules for a continuous supply of digital services.
- other editorial changes.
For more information, please visit the IRAS website.
Source: IRAS website, 26 August 2019