On or about 21 August 2019, the Inland Revenue Authority of Singapore (IRAS) has updated the content of its website to explain the process of GST registration, of which the same rules apply for both local and overseas entities.
An overseas entity is defined as one that is not a resident in Singapore and/or does not have an established place of business in Singapore.
The registration is done by appointing a local agent in Singapore, known as a Section 33(1) agent, who will act on behalf of overseas entity for all its GST matters. This agent is responsible for the accounting and payment of GST.
Alternatives for Overseas Entities that Import Goods for Supply in Singapore are:
- The Overseas Entity can import goods into Singapore and supply them in its business name. If your taxable supplies exceed the threshold, GST registration is compulsory otherwise voluntary, and can claim GST paid on imports.
- The Overseas Entity may appoint a GST-registered Singapore agent who will import and supply goods on your behalf. This agent, known as a Section 33(2) agent, is responsible for the goods as if he is the principal. He will import goods into Singapore in his name and claim GST paid on imports. Subsequent supply of the goods will be treated as his taxable supplies and he has to account for GST on the supplies. The Overseas Entity needs not register for GST.
Source: IRAS website, 21 August 2019