askST: What do I have to pay GST on after coming back from a holiday?

SINGAPORE – Planning a shopping spree at Mid Valley Southkey in Johor Bahru or Lotte World Mall in South Korea during the coming holiday season? Don’t forget about GST rules when you return to Singapore.

On Oct 10, a man entering Singapore via Changi Airport said he had nothing to declare, but was referred to Singapore Customs for investigation when it was found that he was

carrying assorted Pokemon trading cards

worth more than $30,000 in total.

The Straits Times looks at what travellers need to know for a hassle-free return to Singapore.

Q: I live for Olive Young and bought $1,000 worth of K-beauty items from the shop during a five-day trip to Seoul. Do I have to pay goods and services tax on them?

A: Yes. GST is payable if the value of the item exceeds the relief amount granted. Since you were away for at least 48 hours, you will be granted tax relief of up to $500 of the value of your purchased items.

This means that you will have to pay the prevailing GST rate for $500 if you are returning to Singapore with $1,000 worth of items after a five-day trip. The current GST rate is 9 per cent.

The tax relief is $100 for travellers who are away for less than 48 hours.

If you are a holder of an employment, student, dependant or long-term pass or a work permit, or are a transport crew member, you will not be eligible for the tax relief.

Those who fail to declare or make an incorrect declaration may have to pay a composition amount of up to 20 times the GST amount, subject to a minimum of $50.

Q: I bought $1,000 worth of Labubu blind boxes in Hong Kong and I don’t want to declare my purchases in person at the Red Channel. Is there any other way for me to declare my items?

A: You are not boxed in by in-person declarations. You can also use the Custom@SG web app to declare and make payment for GST-payable items up to three days in advance.

Once payment has been made, you will be notified via e-mail and you can download the receipt from the web app.

You will be able to exit the checkpoint by the Green Channel.

If you are stopped for checks, you can show the receipt on your mobile device or a printed hard-copy receipt as proof of tax payment.

You must declare and pay the duty or tax for all your overseas purchases in one declaration.

Q: I misplaced or threw away my receipts. Does that mean I don’t have to pay GST? How will Singapore Customs determine how much I have to pay?

A: GST is based on the price paid or payable for the goods, so you should keep receipts and invoices for ease of computing the GST payable.

If receipts or invoices are unavailable, Singapore Customs will assess the value of your goods based on the transaction value of identical or similar goods.

Q: I visited my friend in Thailand, and he gave me a bag but declined to say how much it cost. How will the GST be calculated since I do not have a receipt and will not be able to estimate the value of the gift?

A: If the receipt or invoice is not available, the value of the goods will be assessed based on the value of identical or similar goods when computing the GST payable.

Q: I took with me $700 worth of action figurines to showcase at a comic convention in the US. In order not to be subject to GST on my return to Singapore, how can I prove that I had the items before my trip and did not buy them overseas?

A: A snappy solution would be to take a picture of your items before departing, as some phones will retain information of when and where a photo was taken.

You can also produce receipts or invoices to prove that the goods were bought in Singapore.

According to Singapore Customs, its officers are trained to assess the specifics of each case to determine if the goods are liable for tax payment.

If in doubt, you can seek assistance upon arrival in Singapore at the Singapore Customs Tax Payment Office or approach the Red Channel.

Q: I bought a watch for $700 in Japan and did not claim a tax refund there. Do I still have to pay GST in Singapore?

A: You will have to pay GST on all items brought into Singapore even if foreign sales tax was paid for the item overseas.

It does not matter if you claimed a tax refund abroad or not.

Q: What if I had bought a $1,100 suitcase from one of the duty-free shops at Changi Airport while on the way out of Singapore? Would I have to pay GST on the bag when I return to Singapore after a trip that was shorter than 48 hours?

A: Newly purchased goods are subject to GST. GST is payable if the value of the item exceeds the relief amount granted.

In this case, you would have to pay the prevailing GST rate on $1,000 as the cost of the suitcase exceeds the $100 GST relief you are entitled to for a trip shorter than 48 hours.