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Singapore e-commerce GST extension

  • Feb 22, 2017 | Richard Asquith

Singapore e-commerce GST extension

The Singaporean government has announced that it is considering the extension of the Goods and Services Tax net on goods and electronic services being provided to consumers by non-resident providers.

Currently, non-resident e-service providers are exempt from charging 7% GST to Singaporean consumers.  Singapore is now going to consider including the charging of GST by foreign providers on fees for downloads of games, music, videos, e-books, membership websites, app’s etc.

Many countries across the world (EU, Japan, South Korea, South Africa and Australia) have required such foreign providers to calculate VAT or GST at the rate of the country of residency of the consumer and pay to the appropriate tax authority.

For the sale of goods by foreign sellers, there is a Singapore GST-free threshold of $S400 per import.  This is considered to disadvantage local e-commerce businesses.  The EU and Australia are both considering scraping their low-value goods indirect tax exemptions, too.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.