Effective 1 January 2023, the Inland Revenue Authority of Singapore (IRAS) has introduced changes to the Goods and Services Tax (GST) regulations under the Overseas Vendor Registration (OVR) Regime. Below is an overview of the updates:
Key Features of the OVR Regime
Under the OVR regime, overseas suppliers are required to register for GST if they meet the following conditions:
- Annual Global Turnover: Exceeds S$1 million.
- B2C Supplies to Singapore: Makes business-to-consumer (B2C) supplies of Low-Value Goods (LVG) and/or remote services (digital and non-digital) exceeding S$100,000 annually.
Under the OVR regime, any supplier belonging outside Singapore are liable for registration under either retrospective or prospective basis.
- Retrospective Basis:
- Annual global turnover and the value of B2C LVG supplies to Singapore exceeded S$1 million and S$100,000 respectively in the preceding calendar year (1 January – 31 December 2024).
- Prospective Basis:
- Supplier reasonably expects to exceed the above thresholds in the next 12 months.
Requirements for Eligible Suppliers
Suppliers eligible under the OVR regime must:
- Register for GST in Singapore
- Charge GST at the prevailing rate on LVG (valued at less than S$400) imported into Singapore via air or post at the point of sale
Information for OVR Sellers Shipping to Singapore
If you are an OVR-registered seller, please ensure you provide the following details to your logistics provider when creating an order:
- GST registration number issued by IRAS
- Value of each item in the parcel
- Indication of whether GST has been paid for each item (Yes/No)
Impact on Consumers in Singapore
From 1 January 2023, consumers in Singapore will be charged GST by GST-registered sellers on:
- Goods valued at S$400 or below (“Low-Value Goods”), imported via air or post.
- The GST will apply to the total value of the LVG, including transportation and insurance costs.
Exclusions
This OVR regime does not affect:
- Purchases of LVG from non-OVR registered sellers
- Goods imported via sea or land (regardless of value)
- Goods imported via air or post valued above S$400
For Further Information
For more information, please visit the IRAS website or consult your logistics provider to understand how these changes may impact your supply chain.
