non Finance, non loan, non property, non banking, non credit card
GST will be imposed on low-value goods that are bought online and imported by air or post from 1 January 2023 onwards.
The new imposition will also be extended to non-digital services that are imported, such as live interactions wil ocerseas providers of counselling, tele-medicine and fitness training.
Deputy Prime Minister Heng Swee Keat said that this will help to level the playing field for local businessed to compete effectively.
Previously, low-value goods below $400 that are imported via air or post were not subject to GST to facilitate border clearance, but the tax is paid on such goods that are bought here.
It is worth noting that all goods imported via land or sea are already taxed, regardless of value.
DPM Heng said:
One aspect of a fair and resilient tax system is ensuring a level playing field for our local businesses vis-a-vis their overseas counterparts.
This is especially relevant as e-commerce for sales of goods and services, is growing.”
Overseas suppliers of goods and services will be subject to the same GST treatment as local suppliers,
Shoppers will have to pay the GST when they buy from overseas suppliers, just like how they are being charged when they buy things from local businesses.