With effect from 1 January 2020, GST will be applicable to cross-border Business-to-Customer (B2C) supplies (such as supplies made to individuals and businesses that are not registered for GST in Singapore) of imported digital services through the overseas vendor registration (OVR) regime. This is to achieve parity in GST treatment regardless of whether the service is procured from overseas or locally.
Overseas providers with a yearly global turnover of more than $1 million and sell more than $100,000 worth of digital services to Singapore customers in a 12-month period are required to register for GST and charge GST to their customers.
Common examples include downloadable digital content such as mobile apps and movies, software programs and subscription-based media such as Netflix.
As a committed tax advisor to our clients, we welcome any opportunity to discuss the relevance of the GST changes to your business, particularly how your processes and controls would be affected and the steps to take to ensure compliance.