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Digital service providers have registered for GST under Singapore’s Overseas Vendor Registration (OVR) regime, and will charge GST on their deals of digital administrations to Singapore buyers with effect from 1 Jan 2020. 

At present, only locally procured services are subjected to GST, while services acquired from abroad are most certainly not. As reported in the 2018 Budget Statement, the OVR system is planned to accomplish a level playing field in GST treatment for services, administration regardless of whether acquired locally or abroad. 

Comparable measures have been taken by nations like Australia, Japan, New Zealand, and South Korea from as early as 2015. 

Digital services are characterized as services that are provided over the web or an electronic organization that requires negligible or no human mediation and is inconceivable without the utilization of data innovation. 

Under the OVR system, abroad digital service providers with a yearly worldwide turnover of more than S$1 million that sell more than S$100,000 worth of computerized administrations to clients in Singapore in a year time span are needed to enroll for GST and charge GST.

Take note that will be no changes in the GST treatment for online purchases of goods: GST remains payable on all goods imported into Singapore, with the exception of goods valued S$400 and below imported via air or post.

 

What’s expected from Jan 2020 

Costs paid by shoppers to GST-registered abroad digital services providers for the acquisition of digitalized services will be inclusive of GST from 1 Jan 2020. abroad digital services providers will proclaim and pay the GST gathered to IRAS. Buyers allude to people and non-GST enrolled organizations. 

GST-registered companies that make comparative buys may need to account GST through reverse charge.  They ought to give their GST enrollment number to the abroad digital services providers so GST won’t be charged. 

To check whether an abroad digital services provider is enlisted for GST in Singapore, shoppers and organizations may look for the business utilizing the GST-registered Businesses Search e-Service on the IRAS site. Shoppers should alert IRAS in the event that they experience any unjust assortment of GST by unregistered abroad services providers

 

What buyers need to do 

As abroad overseas service providers use data, for example, payment and billing information to decide whether clients reside in Singapore, organizations and purchasers are liable for giving total and exact data to the enlisted overseas service provider. It is a serious offense to give wrong or bogus data to overseas service providers to abstain from paying GST on digital services.

Costs paid by shoppers to GST-registered abroad digital services providers for the acquisition of digitalized services will be inclusive of GST from 1 Jan 2020. abroad digital services providers will proclaim and pay the GST gathered to IRAS. Buyers allude to people and non-GST enrolled organizations. 

GST-registered companies that make comparative buys may need to account GST through reverse charge.  They ought to give their GST enrollment number to the abroad digital services providers so GST won’t be charged. 

To check whether an abroad digital services provider is enlisted for GST in Singapore, shoppers and organizations may look for the business utilizing the GST-registered Businesses Search e-Service on the IRAS site. Shoppers should alert IRAS in the event that they experience any unjust assortment of GST by unregistered abroad services providers

 

For more information, please refer to the IRAS webpage on Purchasing Digital Services from Overseas Vendors.