- Singapore’s new Overseas Vendor Registration (OVR) system started on January 1, 2020
- Foreign digital companies with customers in Singapore must register, collect, and remit 7% GST
- The system includes a two-tier threshold based on annual global turnover and sales to Singapore consumers
- The new system is expected to recoup SGD$90 million in extra tax revenue each year
- B2B imported services will be taxed via a reverse charge mechanism
- B2C imported services will be taxed through the OVR system
- Overseas suppliers and electronic marketplace operators must register with IRAS for B2C services
- Singapore is the first country to introduce the contractual approach for VAT/GST collection on digital services
Source: vertexinc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
