Tag Archives: Singapore

Singapore – GST on Imported Digital Services—What is Your Game Plan?

 

Globally, the rapid growth of e-commerce in recent years has left tax administrators worldwide scrambling to find and implement mechanisms to secure a piece of the (untouched) digital tax pie.

Consumers are spending an ever-increasing amount on “digital services” such as games, streaming services and online news subscriptions and this is largely driven by the ubiquity of the smartphone and the vast array of mobile applications, which have changed forever the way which businesses reach out to and deliver services to their customers. The Internet of Things has also resulted in businesses gravitating towards “Product-as-a-Service” business models where the outcome of using the product is sold rather than the product itself.

Singapore: Goods and Services Tax for e-commerce transactions in Singapore

To provide clarity on the Goods and Services Tax (“GST”) treatment for e-commerce transactions, the Inland Revenue Authority of Singapore (“IRAS”) has issued a new e-tax guide: “GST: Guide for e-Commerce”.

The e-tax guide clarifies that the medium through which a transaction occurs does not alter the taxability of the transaction. In other words, a supply of goods or services made via the Internet or other electronic media is no different from that made via traditional methods. As such, a GST-registered business is required to charge and account for GST on such transactions, as applicable. The e-tax guide also provides guidance on the GST treatment for the supply of physical goods, digitised goods and services made via the Internet and other electronic media.

What does this mean for you?

If you do business in Singapore and also have a GST registration, you should be aware that GST should be applied to all goods that are ordered or delivered on-line.