GST on imported Low-Value Goods

Low-Value Goods refer to items with sales value of S$400 or less. 

The sales value refers to the price of the goods, which is the amount received or receivable for the supply. It excludes:

• Charges for transportation and insurance costs incurred in delivering the goods from overseas to the place of delivery in Singapore;
• Any GST applicable on the supply of the goods; and
• Any customs duties payable to Singapore Customs

Example 1:

Elsie purchases a dress from an overseas fashion retailer that is registered for GST. She selects delivery to her home in Singapore via postal service. The dress is listed at S$420, with a separate and clearly stated charge of S$25 for transportation and insurance.

To determine whether the dress qualifies as a Low-Value Good, the transportation and insurance fees are excluded from the sales value. This means the sales value of the dress is S$395, which falls below the S$400 threshold.

As the item qualifies as a Low-Value Good, GST is chargeable, and Elsie will need to pay GST to the supplier at the point of purchase.

If you purchase several Low-Value Goods – each individually priced at S$400 or below – from a GST-registered supplier and they are shipped together via air or post, GST still applies to each item individually.

Even if the combined value of the shipment exceeds S$400, the entry value threshold is assessed per item, not per consignment. This means each item is treated separately for GST purposes, regardless of how they are bundled for delivery.

Example 2:

Francis buys 5 business shirts from an online retailer that is registered for GST. The shirts are shipped from China to Singapore by air. Each shirt is priced at S$90, excluding S$60 in air transport charges.

For GST purposes, the retailer must assess the entry value threshold of S$400 individually for each item.  Since the sales value of each shirt is below S$400, they are treated as Low-Value Goods, and GST must be charged on each item. 

This applies even though the total value of the entire order exceeds S$400.

Helen orders a jacket from an overseas retailer that is not registered for GST, and requests delivery to her home in Singapore via post. The jacket is priced at S$280, with a separate and clearly stated charge of S$25 for transportation and insurance. 

Since the retailer is not GST-registered, GST is not charged at the point of sale.

Additionally, because the CIF value is below $$400, GST is not payable at the point of importation either.

Purchases from GST-registered overseas suppliers

If you buy Low-Value Goods (S$400 or less per item) from an overseas supplier that is registered for GST, and the goods are shipped to Singapore via air or post, GST is charged at the point of purchase.

The supplier will provide the relevant GST details – such as their GST registration number and confirmation of GST payment) – to the courier service provider.

As GST has already been paid, no GST is payable at the point of importation.

Purchases from non-GST registered overseas suppliers

If you buy goods from an overseas supplier not registered for GST, and the total value including transportation and insurance exceeds S$400, GST will be charged at the point of importation.

Example 4: 

Keith orders a pair of sneakers priced at S$390 from an overseas retailer that is registered for GST. The sneakers are shipped to Singapore by air, with an additional S$35 charged for transportation and insurance.

Since the sales value of the sneakers is S$390, which is below the S$400 threshold, the retailer treats the item as a Low-Value Good and charges GST at the point of sale. GST is calculated on the total amount (S$390 + S$35), resulting in a payment of S$463.25 (including GST of $38.25).

The retailer will provide the courier service provider with the necessary GST details, including their GST registration number and confirmation that GST has been paid. Therefore, no GST is payable at the point of importation.

Example 4a:

Keith orders a pair of sneakers priced at S$390 from an overseas supplier that is not registered for GST.  The sneakers are shipped to Singapore by air, with an additional S$35 charged for transportation and insurance. 

Since the supplier is not GST-registered, GST is not charged at the point of purchase.  

However, the CIF value totals S$425, which exceeds the S$400 threshold for GST import relief. As a result, GST will be collected at the point of importation.  The courier service provider will pay the GST to Singapore Customs on Keith’s behalf and subsequently recover the GST amount from Keith.

If you buy Low-Value Goods priced in foreign currency, GST treatment depends on the Singapore dollar equivalent value at different stages: 

Purchases from GST-registered overseas suppliers

If the Singapore dollar equivalent value at the point of sale is S$400 or less, the goods qualify as Low-Value Goods, and GST is charged at the point of purchase. The supplier will provide the courier service provider with the necessary GST details, including their GST registration number and confirmation that GST has been paid.  In this case, GST is not payable at the point of importation.  

Purchase from non-GST registered overseas suppliers

If the Singapore dollar equivalent value at the point of importation exceeds S$400, then GST will be charged at the point of importation.

Example 5:

Lisa buys a bag from an overseas supplier that is registered for GST, and the item is shipped to Singapore by air.  Based on the exchange rate at the time of sale, the Singapore dollar equivalent of the bag’s sales value is S$398.

Since the value is below the S$400 threshold, the supplier treats the item as a Low-Value Good and charges GST at the point of sale. 

The supplier will provide the courier service provider with the necessary GST details – such as their GST registration number and confirmation that GST has been paid.

As a result, GST is not payable at the point of importation.  

Example 5a:

Lisa buys a bag from an overseas supplier that is not registered for GST, and the item is shipped to Singapore by air. At the time of purchase, the Singapore dollar equivalent of the bag’s value is S$398, based on the exchange rate used.

Since the supplier is not GST-registered, GST is not charged at the point of sale. 

However, at the time of importation, the Singapore dollar equivalent value of the bag is S$402, based on the exchange rate applied at the time of importation. As this exceeds the S$400 threshold, the bag does not qualify for import GST relief, and GST will be collected at the point of importation.

The courier service provider will pay the GST to Singapore Customs and recover the amount from Lisa. 

Generally, GST should only be charged once on your purchase. If you have already paid GST at the point of purchase of Low-Value Goods, you should not be charged GST again at the point of importation if the GST-registered supplier has given the courier service provider the necessary GST details – such as their GST registration number and confirmation that GST has been paid. You have been asked to pay GST again at the point of importation because the courier service provider did not receive the necessary GST details from your supplier in time and the goods have been treated by Singapore Customs as an import for which GST is payable.

As you would have paid GST twice on the same goods, you can request a refund from the supplier. To support your claim, provide one of the following documents as proof of GST payment to Singapore Customs:

• A tax invoice or permit notification from the air express couriers (i.e. Federal Express (S) Pte Ltd, United Parcel Service Singapore Pte Ltd or DHL Express (Singapore) Pte Ltd) handed to you upon delivery of the goods; or
• An in-payment permit issued by Singapore Customs, provided by the courier at delivery; or
• A GST payment receipt issued by SingPost at the time 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)