Imposition of GST on low-value imported goods a matter of time

IN THE Budget 2018 statement, Minister for Finance Heng Swee Keat announced that Singapore would implement an Overseas Vendor Registration (OVR) regime effective Jan 1, 2020, which is intended to tax the import of digital services into Singapore supplied to non-GST registered consumers (i.e, B2C), commonly referred to as the "Netflix tax".

In the same vein, Mr Heng stated that Singapore was not yet ready to address the further imposition of GST on low-value imported goods. Instead, the tax authority would further consult with the industry and review the developments in other countries.

The standard rule covers goods (for example, new or used articles, online purchases, gifts) imported via post or courier services to be subjected to payment of GST and/or duty at the point of importation. However, GST relief is available on goods that are imported by post or air, excluding intoxicating liquors and tobacco, as long as the total CIF (Cost + Insurance + Freight) value does not exceed S$400. That said, the OVR regime excludes GST payment on imported low-value non-dutiable goods into Singapore not exceeding a CIF value of S$400.