GST ON IMPORTS FOR SINGAPORE

GST are the indirect taxes to be paid on the consumption of goods and services. Every country has its own rules and regulations regarding its policies and returns.

Singapore, which is considered as tourist hub. It is also 15th largest importer in the world. The tax structure here is implemented and maintained by Inland Revenue Authority of Singapore which levies 7% GST on imports. Items purchased outside of the country are also subjected to GST of the cost of the item once they enter the territory.

From the effect from 19th February, 2019, IFRS has given certain relaxations on the imports in the country. It states that someone who spends less than 48 hours outside of the country will receive relief up to S$100 and one who spends 48 hours or more outside the country will be receiving relief up to S$500. This rule is implemented on goods that are brought as gifts, new articles, eatable that are for personal consumption only.

However, there are certain exceptions like items brought for commercial use or toxic items like liquor or tobacco will be subjected to pay GST.

Claiming GST in imports for Singapore customers

For claiming tax return, your applications must be supported by criteria laid by IRAS.

1) Have purchase invoice to support your claim that shows actual value of your purchases.

2) Your invoice must be GST compatible I.e. it should clearly show how much have you paid total GST.

3) The supplier’s name and addresses should be clearly mentioned in your invoice.

Rebate on GST on inputs

At the end of financial year, when the taxes are to be paid, the GST registered producers can claim their tax deductions on output, that are already paid during the process of input generation. At the time of input generation, the producers already pays while making purchases for raw materials. This become disguised tax that some unknowingly pay twice.For instance, if you are a producer, who made purchases worth S$1000, incurring tax up to S$70, then this S$70 can be claimed back while paying annual taxes.

Why do I have to pay GST on goods that I bring into Singapore from overseas?

GST is an indirect tax that are to be paid on consumption of goods and services. So every good or service that one consume, within or outside territory of the country will be subjected to pay GST.

However, there are certain relief provided which works according to the criteria set by the IRAS. According to the criteria, one who travels outside of Singapore for less then 48 hours will get relief of S$100 and who travels like 48 hours or more will get relief up to S$500.

For example, if I travels for a month and purchases goods of S$500, I am not be subjected to pay taxes. But if my purchases exceeds S$500, like for instance I spend S$1200, it will subjected to pay taxes only for S$700 (after deducting S$500).