Singapore Eyes Online Shopping GST

November 23, 2017 Taxation in Singapore

Online shopping taxSINGAPORE – Singapore’s rising government expenditure may soon be financed by a tax on online purchases.

As the spending needs of the government of Singapore grows, authorities may soon look into re-working the current legislation on the collection of Goods and Service Tax.

Currently, any goods or services purchased by a taxpayer from Singapore from an international online retailer, are not liable for GST, unless the cost exceeds SGD 400.

Some experts have suggested that the government may lower the threshold in order to capture more transaction under the net of GST.

While the government has not given any indication of how exactly the changes will work.

However, it is expected that the changes will either require merchants to register for GST in Singapore and collect taxes on behalf of taxpayers, or a system where taxpayers must account for their own purchases.

The alternative to looking at GST reform is to raise the rate of GST in all items in order to pay for the country’s rising social costs.