GST: Reverse Charge (PDF, 790KB)
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GST on remote services
If you are a consumer (i.e., non-GST registered customer) in Singapore, you must pay GST on all remote services - digital or non-digital, when purchased from GST-registered overseas service providers. These services do not require the customer to be physically located where the services are performed. This rule ensures consistent GST treatment for all services, whether you buy them locally or from abroad.
What are remote services?
Examples of remote services which you must pay GST when purchased from a GST-registered overseas service provider:
- Downloadable digital content (e.g. mobile applications, e-books and movies)
- Subscription-based media (e.g. news, magazines, streaming of TV shows and music)
- Software programs (e.g. software, drivers and website filters)
- Electronic data management services (e.g. website hosting and cloud storage)
- Support services provided electronically to arrange or facilitate transactions, which may not be digital in nature (e.g. service or booking fee charged to the suppliers or customers)
- Professional services (e.g. investment advisory, brokerage, consultancy services)
- Personal services (e.g. online counselling, online personal trainer, telemedicine, online dating and matchmaking),
- Educational, professional membership and examination services (e.g. distance learning classes, online examinations to obtain professional certification, membership subscription to professional associations).
Services that require you to be physically located where they are performed are not considered remote services. Examples include hairdressing, physical attendance at entertainment or sporting events, or land tours. If you consume these services overseas, you may need to pay any local taxes imposed in that country.
Who can charge GST
Only GST-registered providers are authorised to charge and collect GST from consumers in Singapore. You can use the GST-registered Business Search to check whether an overseas digital service provider is registered for GST.
You may submit the Reporting Wrong GST Practices of Businesses form if you encounter any wrongful collection of GST by unregistered overseas providers.
Price display
As most of the GST-registered overseas service providers operate in a global market, it may not be feasible for them to display prices inclusive of Singapore GST on their websites or online stores.
Some of these providers may only be able to determine whether Singapore GST is chargeable after verifying that you reside in Singapore. Once the GST-registered provider has ascertained that Singapore GST is chargeable, the price that they charge you will be inclusive of GST.
Customer’s responsibility to provide correct information
Overseas service providers will determine if you reside in Singapore based on information you provide to them. This includes your payment and billing information.
You are responsible for providing complete and accurate information to GST-registered overseas service providers so that they can determine whether Singapore GST is applicable.
It is a serious offence to provide incorrect or false information to overseas providers to avoid paying GST (e.g. providing a false address to misrepresent yourself as residing outside Singapore or using a business’ GST registration number when you are not GST-registered).
Upon conviction, offenders may face penalties of up to 3 times the amount of tax chargeable and a jail term of up to 7 years.
FAQs
Does the OVR regime affect food delivery services in Singapore?
Under the OVR regime for imported services, GST is chargeable on business to consumer (B2C) remote services provided by overseas GST-registered suppliers. Food delivery services in Singapore are not subject to the OVR regime as they are locally procured services.
However, domestic GST rules still apply to goods and services provided by local GST-registered companies. As such, if the local delivery service provider or its partnering restaurants are GST-registered, GST will be charged on the delivery fees or purchased food items as they are locally procured goods and services.