IRAS updated guidance requires Singapore consumers to pay GST on all remote services from overseas GST-registered providers, with penalties for providing false information.
The Inland Revenue Authority of Singapore (IRAS) has published updated guidance on purchasing remote services from overseas service providers, clarifying the GST application for consumers in Singapore.
Under the guidance, non-GST registered customers in Singapore must pay GST on all remote services purchased from GST-registered overseas service providers, regardless of whether the services are digital or non-digital. The rules apply even if the services are not physically performed in Singapore, ensuring consistent GST treatment for both local and overseas purchases.
Remote services subject to GST include downloadable digital content, subscription-based media, software programs, electronic data management services, electronically provided support services, professional and personal services, as well as educational, professional membership, and examination services. Services requiring physical presence, such as hairdressing, attending live events, or local tours, are not considered remote services.
Only GST-registered providers are authorised to charge and collect GST from Singapore consumers. IRAS advises customers to verify provider registration using the GST-registered Business Search and report wrongful GST collection by unregistered providers through the Reporting Wrong GST Practices of Businesses form.
Price displays may not always include Singapore GST, as many overseas providers operate globally. GST is applied once the provider verifies that the customer resides in Singapore. Consumers are responsible for providing accurate information to determine GST applicability. Providing false information, such as a fake address or incorrect GST registration number, is a serious offence, punishable by fines of up to three times the tax amount and up to seven years’ imprisonment.
