SINGAPORE - More than 100 overseas digital service providers have registered for goods and services tax (GST), the Inland Revenue Authority of Singapore (Iras) said on Monday (Dec 9).
This is ahead of GST for imported digital services kicking in on Jan 1.
Currently, only locally procured services are subject to GST.
The Overseas Vendor Registration (OVR) regime levels the playing field in GST treatment for both local and overseas services, Iras said.
Similar measures have also been adopted by countries like Australia, Japan, New Zealand and South Korea from as early as 2015, it noted.
Digital services are those provided over the Internet or an electronic network.
Common examples include downloadable digital content such as mobile apps and movies, software programs and subscription-based media such as Netflix.
Overseas providers with a yearly global turnover of more than $1 million and sell more than $100,000 worth of digital services to Singapore customers in a 12-month period are required to register for GST and charge GST to their customers.
The prices of these digital services will be inclusive of GST from Jan 1, 2020, when sold to individuals and non-GST registered businesses.
There are no changes in GST treatment for online purchases of goods.
Iras said that GST needs to be paid for all goods imported except those valued at less than $400 and are imported via air or post.