Singapore’s Goods and Services Tax (GST) used to stop at the border for services. Foreign digital service providers streamed video into Singapore living rooms, sold software subscriptions to Singapore SMEs, and shipped low-value parcels to Singapore doorsteps, all free of GST while local competitors charged 9%. That gap has now been closed. Under the Overseas Vendor Registration (OVR) regime, overseas suppliers whose Singapore sales cross the GST registration thresholds must register with IRAS, charge GST, and remit it just as if they were domestic businesses. This 2026 guide explains how OVR works, who has to register, what “digital services”, “non-digital services”, and “low-value goods” mean, and the practical compliance obligations for both overseas vendors and Singapore buyers.
The Three Streams of OVR
OVR was introduced in stages. There are now three regimes running side by side under the Goods and Services Tax Act 1993:
| Stream | Effective | What It Catches |
|---|---|---|
| Digital services (B2C) | 1 January 2020 | Streaming, software downloads, cloud services, e-books, apps sold to Singapore consumers |
| Low-Value Goods (LVG) and non-digital services (B2C) | 1 January 2023 | Imported goods worth ≤ S$400 shipped by air or post; remote non-digital services (e.g. online tutoring) |
| Business-to-Business (B2B) imported services | 1 January 2020 (reverse charge) | Any imported services purchased by a Singapore GST-registered business that cannot fully claim input tax |
Who Must Register
An overseas supplier must register for GST in Singapore if both of the following thresholds are exceeded:
- Global turnover exceeds S$1 million in a 12-month period; AND
- Value of B2C digital services, non-digital services, or LVG supplied to customers in Singapore exceeds S$100,000 in the same 12-month period.
The overseas supplier registers as a “pay-only” GST registrant. It charges GST at 9% on its supplies to Singapore consumers, files GST returns quarterly, and remits net GST to IRAS. It does not need a Singapore establishment.
What Counts as a “Digital Service”?
Under the GST Act, digital services are services supplied over the Internet or an electronic network, the supply of which is essentially automated and involves minimal or no human intervention. Common examples:
- Streaming video and music (Netflix, Spotify).
- Downloadable software, apps, and e-books.
- Software-as-a-Service (SaaS) subscriptions.
- Online advertising services (Google Ads, Facebook Ads).
- Cloud storage and cloud computing.
- Online gaming and in-app purchases.
- Online membership fees for content platforms.
Services that require significant human intervention, such as an online tutoring session delivered live by a human teacher, are treated as non-digital remote services and, since 1 January 2023, are also caught by OVR.
Low-Value Goods (LVG) Explained
LVG are goods valued at S$400 or less imported into Singapore by air or post. Before 2023, these were largely GST-free. From 1 January 2023, overseas suppliers meeting the OVR thresholds must charge GST on LVG sold to Singapore consumers. Practical points:
- The S$400 threshold is per item, based on the sale price excluding transport and insurance.
- Goods worth over S$400 are subject to GST at the border by Singapore Customs, unchanged from before.
- Excise-liable goods (liquor, tobacco) are excluded from LVG-OVR.
- Overseas suppliers must clearly identify GST on invoices and confirm registration in shipping documents to avoid double taxation at the border.
The Reverse Charge for B2B Imported Services
For services imported by a Singapore GST-registered business, the reverse charge applies. Under the reverse charge, the Singapore buyer accounts for GST on the imported service as both output and input tax in the same GST return. In most cases, the two entries net to zero. But if the Singapore business cannot fully claim input tax (for example, a residential landlord or a financial services provider making exempt supplies), the reverse charge produces a real cost.
The reverse charge is a separate mechanism from OVR. The overseas supplier does not register or charge GST for pure B2B supplies to Singapore GST-registered buyers.
How to Register (Overseas Supplier)
Step 1: Check Thresholds
Confirm you exceed both S$1M global turnover and S$100k Singapore B2C supplies. Apply the “prospective test” (looking forward 12 months) and the “retrospective test” (looking back 12 months). If either fails, monitor and register when thresholds are crossed.
Step 2: Apply Online
Submit Form GST F1 (Application for GST Registration) through IRAS. Supporting documents include company registration details, evidence of Singapore sales, and appointment of a local agent if required.
Step 3: Charge and Collect GST
From the effective date of registration, charge 9% GST on B2C digital services, non-digital remote services, and LVG. Do not charge GST on B2B supplies to Singapore GST-registered buyers (they reverse-charge instead).
Step 4: File Quarterly Returns
File the GST F5 return online through myTax Portal within one month after the end of each quarter. Remit net GST payable to IRAS in Singapore dollars.
What Singapore Buyers Need to Do
Singapore consumers do not pay GST twice. If an OVR-registered overseas supplier charges GST on your subscription, that is the final GST payable. Do not accept a GST charge from a supplier who is not OVR-registered on B2C supplies.
For Singapore GST-registered businesses buying imported services or LVG:
- Confirm the supplier’s GST registration status (an OVR-registered supplier should not charge GST on B2B supplies).
- Reverse-charge B2B imported services in the GST F5 return.
- Track imported LVG for correct input tax claims.
- Update procurement checklists to flag foreign suppliers for GST treatment.
See our GST registration guide and Singapore e-commerce tax and compliance guide for related coverage.
Common Compliance Issues
- Confusing digital and non-digital services. Both are caught by OVR but the classification affects invoice content and reverse-charge behaviour.
- Not distinguishing B2B from B2C. Overseas suppliers must obtain and record the customer’s GST registration number to treat a supply as B2B.
- Missing the S$100,000 Singapore threshold. Small overseas suppliers often assume they are under the radar; IRAS actively data-matches against payment processors.
- Double-charging on LVG. If Singapore Customs also imposes GST at the border, the buyer overpays. Correct shipping documentation prevents this.
- FX conversion errors. All GST returns are filed in Singapore dollars using the average exchange rate for the return period.
Penalties for Non-Compliance
Failure to register when required, or failure to charge GST when registered, can result in:
- Backdated registration and payment of GST that should have been collected.
- Penalties of up to 200% of the GST underpaid.
- Late payment penalties: 5% of unpaid tax immediately, plus 2% per month up to 50%.
- Criminal prosecution for wilful default.
Frequently Asked Questions
Do I Charge GST on a Sale to a Singapore Company With a GST Number?
No. If the buyer provides a valid Singapore GST registration number and is receiving the service in its business capacity, you should not charge GST. The buyer will reverse-charge if required.
What Exchange Rate Do I Use to Convert Foreign Sales to SGD?
The average exchange rate for the GST return period. The Monetary Authority of Singapore publishes reference rates that IRAS accepts.
Do I Have to Appoint a Local Agent?
Not automatically. Overseas OVR registrants generally do not need a Singapore agent, but IRAS may require one in specific cases. Many overseas vendors appoint a Singapore corporate services firm to manage filings.
What Happens if My Singapore Sales Drop Below the Threshold?
You can apply to deregister. Continue filing until IRAS confirms deregistration. Deregistration is not automatic.
Can OVR-Registered Overseas Vendors Claim Input Tax?
No. OVR is a “pay-only” registration. Overseas vendors cannot claim input tax on Singapore GST paid on inputs. If input tax claims are important, a full GST registration through a Singapore-established entity is the alternative.
— The Editorial Team, Raffles Corporate Services