Singapore Tax Authorities - updated GST guidance

The Singapore Tax Authorities have updated a number of tax guides, including GST: Guidelines on Determining the Belonging Status of Supplier and Customer

4.5 With effect from 1 Jan 2020, the following imported services will be brought within the charging scope: …..(b) Business-to-consumer2 (“B2C”) imported digital services will be subject to GST by way of an overseas vendor registration regime.

4.6 With effect from 1 Jan 2023, the overseas vendor registration regime will be extended to tax B2C supplies of non-digital services, as well as imported low-value goods (“LVG”). The reverse charge regime will also be extended to imported LVG.

4.11 To determine where your customer belongs for the following services, please refer to the administrative rules in the e-Tax Guides stated below:

• Services comprising the provision of digitised goods – refer to “GST: Guide for E-Commerce”
• B2C imported digital services – refer to “GST: Taxing imported services by way of an overseas vendor registration regime”
• B2C imported remote services – refer to “GST: Taxing imported remote services by way of the overseas vendor registration regime”

Paragraph 5.6 of GST: Taxing imported remote services by way of the overseas vendor registration regime includes Educational, professional membership and examination services (e.g., distance learning classes, online examinations to obtain professional certification, membership subscription to professional associations) within the definition of “remote services” that are subject to the tax.

Annex A to this guide provides a list of services that are “included” or “excluded” from the list of remote services  - included services that are relevant to the HE sector are:

• Supply of digital products E.g. supply of mobile applications and ebooks
• Supply of software programs E.g. downloading of software, drivers, website filters and firewalls
• Supply of images, text and information and making available of databases E.g. subscription to online newspapers and journals, downloading of licensed images
• Supply of music, films and games
• Supply of distance teaching via prerecorded medium or e-learning E.g. supply of online courses
• Supply of live streaming services, regardless whether there is interaction with the content provider
• Supply of membership by professional, academic or recreational bodies E.g. membership fees for professional accounting or financial analyst organisations, academic institutions or sports clubs
• Supply of educational and examination services E.g. distance learning classes, online examination to obtain professional certification
• Remote supplies of cultural, artistic, sporting, educational or entertainment, exhibition or convention services performed outside Singapore E.g. livestreaming of virtual concerts performed outside Singapore, virtual tours of museums located outside Singapore
• Advertising services (including the supply of web advertising space), regardless of the place of circulation

We are in the process of arranging a Time to Talk on the Singapore 1 January 2023 Tax changes to take place this Autumn.