For those of us familiar with online shopping, here’s a sign to get the shirt or item that you’ve been eyeing for months.
And it’s not exactly because 11.11 is coming up, although one may argue that 11.11 is always a good reason to buy more things.
Come 1 January next year, consumers in Singapore will be required to pay for goods that cost less than $400 (also known as low-value goods) if they are imported from overseas via air or post.
According to the Inland Revenue Authority of Singapore’s website, this will apply to goods that are imported into Singapore via air or post (also known as imported low-value goods).
First Announced in Budget 2021
In last year’s Budget 2021, it was announced that GST will be imposed for goods “procured overseas and imported via air or post”.
According to Budget 2021, the change is to “achieve a level playing field in GST treatment for all goods consumed in Singapore, whether procured locally or from overseas”.
Currently, the only low-value goods that are subject to GST are those that are procured locally.
Apart from that, goods imported via sea or land, as well as those imported via air or post but are priced at above $400 are also subject to GST.
The GST rates for these items will not change.
Other Services Will Also Have GST Imposed
Apart from low-value imported items, imported non-digital services that are purchased from GST-registered overseas service providers will also be charged GST from 1 January next year onwards.
And if that didn’t make any sense to you at all, it basically means that GST will be charged for any remote services, which includes “all supplies of imported services, whether digital or non-digital, which can be supplied and received remotely”.
There will also be no tax change to the digital services that are currently subject to GST.
For more examples as to which items are subject to GST, you can check out the ICAS website here.
Featured Image: leungchopan / shutterstock.com
