GST on imported Low-Value Goods

There is no change when you purchase goods which are:

• imported via sea or land (regardless of value); or

• imported via air or post (valued above $400).

You will continue to pay GST at the point of importation to Singapore Customs via your courier service provider (for import via sea, land and air) or SingPost (for import via post).  No GST is payable at the point of purchase.

For purchase of goods valued at or below $400 (“Low-Value Goods”) which are imported into Singapore via air or post, GST will be payable at the point of purchase if the goods are purchased from suppliers that are registered for GST with effect from 1 Jan 2023.

Low-Value Goods are goods with sales value at or below S$400. 

The sales value refers to the selling price of the goods, which is the amount of consideration received or receivable for the supply but excluding any amounts charged for:

• Transportation and insurance costs (i.e. fees charged to customer for transportation and insurance) for transporting the goods from overseas to the place of delivery in Singapore;
• Any GST chargeable on the supply of Low-Value Goods; and
• Any duties payable to Singapore Customs

Example 1:

Elsie places an order for a dress from a GST-registered overseas fashion retailer and provides her Singapore home address as the delivery address for shipment via post. The dress is listed for sale at S$420 and includes a separate and explicit charge of transportation and insurance fees of S$25.

To determine whether the supply of the dress falls within the sales value of S$400, the transportation and insurance fees will have to be excluded. Hence, the sales value of the dress is S$395.  As it is below the sales value of S$400, Elsie will have to pay GST on the purchase of the dress to the supplier.

Purchase from GST-registered suppliers

You have to pay GST on the purchase of goods valued at S$400 or below (“Low-Value Goods”) from GST-registered suppliers if the goods are imported into Singapore via air/post. The supplier will provide the courier service provider with the relevant GST information (i.e. GST registration number of the supplier and an indication that GST has been paid).  GST will not be payable at the point of importation of the goods.

Purchase from non GST-registered suppliers

If you purchase goods from a non-GST registered overseas supplier and the total value exceeds S$400, GST will be payable at the point of importation.

Example 4: 

Keith purchases a pair of sneakers valued at S$390 from a GST-registered overseas supplier. The sneakers will be imported into Singapore via air. There is an additional transportation and insurance costs of S$35 charged to him.

As the sales value of the goods is S$390 (i.e., below the entry value threshold of S$400), the supplier charges GST on the sale of Low-Value Goods. GST will be charged on the total value of the goods and services. Keith will pay S$463.25 (i.e. $390 + $35 + GST of $38.25) to the supplier.   

The supplier will provide the courier service provider with the relevant GST information (i.e. GST registration number of the supplier and an indication that GST has been paid). GST will not be payable at the point of importation of the goods.   

Example 4a:

Keith purchases a pair of sneakers valued at S$390 from an overseas supplier which is not registered for GST.  The sneakers will be imported into Singapore via air. There is an additional transportation and insurance costs of S$35 charged to him.  No GST is payable on the purchase of the sneakers as the supplier is not registered for GST.  

As the CIF value of the goods exceeds S$400 and does not qualify for GST import relief, GST will be collected by Singapore Customs on the importation of the sneakers.  The courier service provider will pay the GST to Singapore Customs and collect the GST from Keith.

Purchase from GST-registered suppliers

GST is payable on the purchase of goods from GST-registered suppliers which will be imported into Singapore via air/post if the Singapore dollar equivalent value of the goods at the point of sale is S$400 or below (“Low-Value Goods”). The supplier will provide the courier service company with the relevant GST information (i.e. GST registration number of the supplier and an indication that GST has been paid).  GST will not be payable at the point of importation of the goods.  

Purchase from non GST-registered suppliers

If you purchase goods from a non-GST registered overseas supplier, GST will be payable at the point of importation if the total value determined at the point of importation exceeds S$400.


Example 5:

Lisa purchases a bag which will be imported into Singapore via air from a GST-registered overseas supplier.  As the Singapore dollar equivalent sales value of the bag is S$398 based on the exchange rate applied at the point of sale, the supplier charges and collects GST from Lisa. 

The supplier will provide the courier service provider with the relevant GST information (i.e. GST registration number of the supplier and an indication that GST has been paid for the Low-Value Goods). GST will not be payable at the point of importation of goods.  

Example 5a:

Lisa purchases a bag which will be imported into Singapore via air from an overseas supplier which is not registered for GST. The Singapore dollar equivalent sales value of the bag is S$398 based on the exchange rate applied at the point of sale. No GST is payable on the purchase as the supplier is not registered for GST. 

At the border, the Singapore dollar equivalent of the bag is S$402 based on the exchange rate applied at the time of importation into Singapore. GST will be collected at the point of importation as the CIF value of the bag is above S$400 and does not qualify for import relief.  

GST is payable when the total value of goods imported is more than $400.  However, if you have paid GST at the point of purchase of Low-Value Goods, GST is not payable to Singapore Customs at the point of importation.  In order for the courier service provider to be aware that the GST has been paid, the supplier is required to provide the relevant GST information to the courier service provider.  If the courier service provider does not have the relevant GST information, you will be required to pay GST at the point of importation.

As you would have paid GST twice on the same goods, you should approach the supplier directly for a GST refund with the following evidence to substantiate that import GST was paid to Singapore Customs:

• Tax invoice or permit notification issued by the air express couriers (i.e. Federal Express (S) Pte Ltd, United Parcel Service Singapore Pte Ltd or DHL Express (Singapore) Pte Ltd which will be handed to you at the point of delivery of the goods; or
• In-payment permit issued by Singapore Customs which will be handed to you by the courier service provider at the point of delivery of the goods; or
• GST payment receipt issued by SingPost at the point of payment.
  

Wrong GST practices of overseas suppliers include:

• Charging and collecting GST on Low-Value Goods before 1 Jan 2023
• Charging and collecting GST on non-Low-Value Goods
• Charging and collecting GST when they are not registered for GST

If you have been wrongly charged GST by the supplier, you should approach the supplier directly for a GST refund.  You may report wrong GST practices of overseas suppliers to IRAS by submitting this form.

The suppliers are required to provide a refund to the customer if the customer has paid GST twice, once to the supplier and once to Singapore Customs on the importation of Low-Value Goods. Hence, you will have to approach the supplier directly for a GST refund and provide your supplier with the following evidence to substantiate that import GST was paid to Singapore Customs:

• Tax invoice or permit notification issued by the air express couriers (i.e. Federal Express (S) Pte Ltd, United Parcel Service Singapore Pte Ltd or DHL Express (Singapore) Pte Ltd) which will be handed to you at the point of delivery of the goods; or
• In-payment permit issued by Singapore Customs which will be handed to you by the courier service provider at the point of delivery of the goods; or
• GST payment receipt issued by SingPost at the point of payment.

You should also maintain the following documents pending a refund from the supplier:

1. Commercial invoice or any other supporting document (e.g., email correspondence from supplier, order form etc.) to show that the supplier has charged GST at the point of sale;
2. Shipping document for the importation of the goods (e.g., Delivery/Consignment Note); and
3. Evidence of payment for the goods e.g., credit card statement.

If you are unable to obtain a GST refund from the supplier, you may seek assistance from your courier service provider to submit a refund claim application on your behalf to Singapore Customs.  You will need to submit the following documents to make the refund claim:

1. Evidence that you had tried to obtain a refund from the supplier and the supplier had refused to refund the GST to you;
2. Commercial invoice or any other supporting document (e.g., email correspondence from supplier, order form etc.) showing the supplier had charged GST at the point of sale;
3. Shipping document for the importation of the goods (e.g., Delivery/Consignment Note);
4. Evidence of payment for the goods, e.g., credit card statement; and
5. Evidence that you had paid import GST to Customs via your courier service provider or to SingPost (e.g. Tax invoice or permit notification issued by the air express couriers; or In-payment permit issued by Singapore Customs; or a GST payment receipt issued by SingPost)