International VAT Guides – Singapore
GST rates in Singapore
How much is GST in Singapore?
The Singapore GST system is an example of a modern, highly developed, and, on a regulatory basis, similar to the EU-based VAT framework. The Inland Revenue Authority of Singapore represents the first point of contact for tax inquiries.
The GST framework in Singapore has different GST compliance systems in place for foreign providers of digital services and for imports of low-value goods. Since January 1, 2020, Singapore has had a so-called overseas vendor registration regime (OVR (simplified registration-reporting system)) for non-resident providers of digital services to customers residing in Singapore.
B2C transactional reporting is done through a simplified pay-only method.
Following international trends, the simplified reporting regime has been expanded to include providing all remote services (including digital) and low-value goods according to the Singapore de minimis rules to equalize the competing terms between local and non-resident suppliers.
Starting from January 1, 2023, any non-resident supplier who surpasses the global turnover of S$ 1 million, and the Singapore-based threshold of S$ 100,000 for all remote services and/or low-value goods, is mandated to register for GST following the OVR regime (simplified registration and reporting mechanism).
From 1 Jan 2020, any supplier outside Singapore with a global turnover exceeding S$1 million and making supplies of digital services exceeding S$100,000 to non-GST registered customers in Singapore (B2C supplies) is required to register, charge, and account for GST.
The Singapore GST regime is mainly based on the:
- The GST Act;
- Income Tax Act;
- Different GST Guides (e.g., the Overseas Vendor Registration Regime and the like).
| Singapore GST Rate | Rate Type | Coverage and imposition |
| 9% | Standard Rate | The general GST rate applies to all supplies of goods and services that aren’t zero-rated or exempt. |
| 0% | Zero-rate | Provision of international services; exports. |
| Tax-exempt | Tax-exempt | Financial services; supply of digital payment tokens. |
GST threshold in Singapore
The simplified registration regime is defined in the GST Singapore Act and in more detail in the overseas vendor registration regime guides. The Inland Revenue has prepared detailed guides for all stakeholders involved to eliminate confusion and ease the navigation for non-resident providers of remote services or low-value parcels when the place of supply is in Singapore.
The amendments of the Singapore Goods and Services Act (GST Act) that came into effect on January 1, 2023, expanded the scope of transactions used to calculate the registration threshold for non-resident suppliers.
The GST threshold in Singapore for overseas providers of remote services (digital and non-digital), as well as imports of low-value goods, is explained in detail through the GST OVR guides.
The GST registration threshold calculation system is based on the parameters of the so-called retrospective and prospective basis.
Retrospective basis: Overseas suppliers within the calendar year reach the global turnover threshold of S$ 1 million and the SG-based threshold of S$ 100,000(for suppliers of remote services and LVG).
Prospective basis: Overseas supplier can reasonably expect that it will, in 12 months, surpass he global turnover threshold of S$ 1 million and the SG-based threshold of S$ 100,000(for suppliers of remote services and LVG).
GST Taxable Activities in Singapore
Types of taxable activities that trigger mandatory GST registration:
- Supply of goods and services for consideration;
- Exports;
- Imports of goods and services;
- Overseas sales of low-value goods to customers in Singapore;
- Provision of digital services to customers in Singapore.
Tax Representative in Singapore
Non-resident digital services providers are not required to engage with the local third-party service provider for GST registration and filing purposes.
Tax registration
Standard Registration
Foreign or domestic economic operators that cannot adhere to the OVR regime scheme should register under the standard GST scheme.
Simplified tax registration
To reduce administrative burden and related compliance costs for non-resident providers of digital and non-digital cross-border services, the Singaporean Revenue Authority has established the Overseas Vendor Registration regime (OVR regime). This simplified registration and reporting regime is based on the pay-only methodology, i.e., without the possibility of incurring tax credits and making supported claims.
The overseas vendors and digital platform operators called to register under this regime have significantly reduced the scope of requirements compared to local businesses, and the invoicing requirements have been simplified.
Foreign providers of remotely deliverable services or low-value goods can register for GST in Singapore using the simplified OVR scheme.
GST on Electronically Supplied Services in Singapore
Digital Services
The first version of the OVR regime that came into effect on January 1, 2020, had only digital services in scope. The later extension of the regime in 2023 also included the cross-border non-digital services.
After OVR registration and issuance of the OVR tax ID, non-resident suppliers of digital services should charge GST for B2C supplies. Regarding B2B supplies, the reverse charge mechanism should be used when the recipient is a GST-registered business that is registered locally.
How much is GST in Singapore for Electronically Supplied Services?
The GST rate Singapore for supplies of most remote services(digital and non-digital) is 9%.
Taxable Digital Services in Singapore
The following types of digital services trigger mandatory GST registration of non-resident providers:
- Audio and video streaming services;
- SaaS services;
- Intermediation between third parties offering goods or services and those seeking them;
- Travel arranging services.
Marketplace and Digital Platform Operators Rules
In specific cases when a local or foreign non-resident digital platform facilitates the provision of remote services, the platform operator has the obligation to register, charge, and collect GST on these supplies. The platform operator becomes a GST-responsible party for this third-party supply.
Invoicing Rules
A GST-registered non-resident supplier of remote services isn’t obligated to issue a tax invoice to its customers.
The minimum requirements of the invoice are the following:
General information:
- Date of invoice issuance;
- Date and time of supply.
Seller information:
- Company name;
- Full address (head office);
- Billing address if different from company address;
- GST number.
Customer information:
- Name;
- Full address;
- GST number (if applicable);
Fiscal Information:
- Tax amount for each type of goods or services supplied;
- Net value per tax rate;
- Distinct line of gross value per tax rate or tax-exempt supply;
- Type of the transaction by reference to the categories indicated in the GST Act;
- Total tax amount;
- Invoice Total tax exclusive;
- The rate of any discount;
- Total invoice amount.
Foreign Currency Invoice in Singapore
In most cases, issuing an invoice in a foreign currency is permitted. However, GST declarations should be submitted exclusively in the local currency.
GST Return in Singapore
Standard Return
Local businesses and foreign businesses with a permanent establishment in the country should follow the general reporting and accounting rules, and shall submit and pay the ordinary GST return.
Simplified return
Non-resident providers of electronic services that have registered through a simplified form should submit a simplified return.
GST Simplified Return
| GST Return Name | OVR simplified return |
| Filling frequency | Quarterly |
| Online Filling | Mandatory |
| Annual Return | No |
| Filing deadline | Within a month of the end of the reporting period |
| Payment deadline | Same as for the submission of the quarterly return |
| Payment currency | SGD |
| Language | English |
| Local GST acronym | GST |
Penalties for late reporting and omitted declarations
Late GST return filing, payment, and registration are situations in which taxable persons are most likely to experience the unwanted expense of paying a fine, penalty, and/or interest for failing to comply within the prescribed timeframe.
Fines and penalties according to the GST Singapore Act:
The late registration penalty will probably cover the following:
The registration date will be backdated to the date the taxable person should have been registered for GST. The late registrant shall be obliged to pay for all GST that should have been collected since the effective date of its registration. It will probably face a fine of up to $10,000 and a penalty equal to 10% of the GST due.
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