GST: Reverse Charge (PDF, 938KB)
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If you are not GST-registered and buy remote services from a GST-registered overseas provider, you must pay GST at the prevailing rate of 9%. This ensures GST is applied consistently whether services are purchased locally or from overseas.
What are remote services
Remote services are services you can use without being physically present where they are performed. Below are some examples of remote services:
| Service type | Examples |
|---|---|
| Digital content | Mobile apps, e-books, movies, music downloads |
| Streaming services | Netflix, Spotify, news subscriptions, magazines |
| Software | Programs, drivers, website filters, cloud storage |
| Professional services | Investment advice, consultancy, brokerage |
| Personal services | Online counselling, telemedicine, dating services |
| Education services | Online courses, professional certifications, membership subscriptions |
| Support services | Booking fees, transaction facilitation services |
Services that require you to be physically present where they are performed are not remote services. Examples include:
- Hairdressing or beauty treatments
- Physical attendance at events or shows
- Land tours
How to check if a provider can charge GST
Only GST-registered overseas providers are authorised to charge GST on remote services supplied to consumers in Singapore. Check if the provider is GST-registered using the GST-registered Business Search.
Note: If a non-GST registered provider charges you GST, you may report the case to IRAS using the Reporting Wrong GST Practices of Businesses form.
What you must do when purchasing remote services
As most GST-registered overseas service providers sell to customers in different countries, it may not be feasible for them to display prices inclusive of Singapore GST on their websites or online stores.
Therefore, you must provide complete and accurate information to overseas providers so that they can determine whether GST applies. This includes your residential address, IP address, and your payment and billing information. The provider will add GST to your final bill after confirming that you reside in Singapore.
Penalties for providing false information
Providing false information to overseas providers to avoid paying GST is a serious offence. This includes:
- Using a fake address outside Singapore
- Providing another business’ GST registration number when you are not GST-registered
You may face penalties of up to 3 times the tax amount and a jail term of up to 7 years.