On or about 4 February 2019, the Inland Revenue Authority of Singapore (IRAS) has published the first edition of GST e-Tax Guide: Taxing imported services by way of an overseas vendor registration regime.
In Budget 2018, the Finance Minister has announced that GST will apply to imported digital services in the context of business-to-consumer (“B2C”) transactions by way of an overseas vendor registration regime with effect from 1 Jan 2020. This will achieve parity in GST treatment for all services consumed in Singapore regardless of whether the service is procured from overseas or locally.
A Reverse Charge mechanism would also be implemented on 1 Jan 2020 to tax business-to-business (“B2B”) supplies of imported services. (Refer to the e-Tax Guide “GST: Taxing imported services by way of reverse charge” for information on the measure.)
This guide explains the features of the overseas vendor registration regime, and the related GST registration and reporting rules. It also covers the compliance guidelines, as well as the transitional rules applicable to transactions spanning the implementation of the registration regime on 1 Jan 2020.
It is applicable to:
- An overseas supplier making sales of digital services to customers in Singapore;
- An operator of a local or overseas electronic marketplace supplying digital services to customers in Singapore, on behalf of suppliers and merchants, through your marketplace; or
- A consumer in Singapore making purchases of digital services from overseas suppliers and electronic marketplaces.
Source: IRAS, 4 February 2019