Singapore 7% GST e-services review

Singapore is reviewing introducing the obligation for non-resident providers of goods and electronic services consumers to charge 7% Goods and Services Tax (GST).

GST is now the country’s second major tax, and there has been an increasing reliance on indirect taxes.  In line with this, the government is eager to ensure the burgeoning e-commerce market contributes to the tax take, including the growing number foreign e-commerce businesses.  Currently, imports of consumer goods below $400 are GST-free.  This also includes low-value consumer goods, as well as e-services (downloads/streaming music, games, e-books, software, apps, online journals etc.).

The potential change mirrors reforms in the EU, New Zealand, South Africa, Japan, Russia and many other states.  Australia last month imposed 10% GST on foreign e-services; but failed to withdraw its own GST-exempt low-value consignment stock threshold of AUS$1,000.

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