IRAS stated that more than 100 overseas digital service providers have registered for goods and services tax (GST), ahead of GST imported digital services kicking in on 1 January 2020.
Digital services are those provided over the Internet or an electronic network such as mobile apps and movies and even subscription-based services such as Netflix.
Overseas providers with a yearly global turnover of more than $1m and sell more than $100,000 worth of digital services to Singapore customers in a 12-month period are required to register for GST as well as charge GST to their customers. The prices which are GST inclusive will be sold to individuals and non-GST registered businesses from1 January 2020.
There are no changes in GST treatment for online purchases of goods or for goods imported which are valued at less than $400.
The Overseas Vendor Registration (OVR) regime levels the playing field in GST treatment for both local and overseas services. Similar measures have also been adopted by countries like Australia, Japan, New Zealand and South Korea.
Source: The Strait Times, 9 December 2019