GST on Imported Services (Issue 2)
Taxing B2C digital services by way of an Overseas Vendor Registration (OVR) regime
If you belong outside Singapore, you are required to register for GST in Singapore if you:
1. have an annual global turnover exceeding $1 million; and
2. make B2C supplies of digital services to customers in Singapore exceeding $100,000.
Once registered for GST, you are required to charge and account for GST on B2C supplies of digital services made to customers in Singapore.
If you are an electronic marketplace operator
Under certain conditions, whether you are a local or an overseas operator of an electronic marketplace, you may be regarded as the supplier of the digital services made by the overseas suppliers through your marketplace.
In such cases, you are required to include the value of these services to determine your GST registration liability. If you are liable for GST registration or are already GST-registered, you are required to charge and account for GST on B2C supplies of digital services made through your marketplace to customers in Singapore on behalf of the overseas suppliers, in addition to digital services made by you directly to customers in Singapore.
To ease extra-territorial compliance burden, if you are an overseas operator, you will be registered under a simplified regime, with reduced registration and reporting requirements.
For more information, please refer to the e-Tax Guide GST: Taxing imported services by way of an overseas vendor registration regime.
GST-Registered Businesses purchasing digital services from GST-Registered Overseas Vendors
Under the OVR regime, supplies of digital services to consumers (i.e. individuals and non-GST registered businesses) are subject to GST. A GST-registered overseas service provider will thus have to determine if a customer is GST-registered to charge GST correctly.
If you are a GST-registered business purchasing digital services from a GST-registered overseas service provider under the OVR regime, you need to provide your GST registration number to the provider so that GST will not be charged on business purchases of digital services. If you are a Reverse Charge business, you are required to account for GST on the imported digital services by way of reverse charge instead.
To check whether your overseas digital service provider is registered for GST, you can use the GST-registered Business Search.