New Law Introducing GST for Imported Low Value Goods by Air or Mail, Political News and Top Stories
SINGAPORE – Proposed changes to the law were tabled in parliament on Monday (October 4th) to make goods imported by air or mail worth $ 400 or less subject to GST.
If passed, the Bill on Goods and Services Tax (Amendment) will see the GST for such low value goods, which will be introduced from January 1, 2023. The GST is also used for imported non-digital services from businesses to consumers such as interacting with live. surveyed foreign providers of educational learning and telemedicine.
Currently, these imported goods and services are not subject to GST.
The Treasury Department (MOF), which introduced the bill, said: “The extension of GST to such imported low-value goods and non-digital services imported from businesses to consumers complements the existing GST measures for imported businesses to enterprise services and business-to -Consumer imported digital services that went into effect on January 1st last year.
“Together they ensure a level playing field for our local companies. Overseas suppliers of goods and services will be subject to the same GST treatment as local suppliers. This change also keeps our GST system resilient in a growing digital economy. “
These changes were first announced in the 2021 budget on February 16 this year.
In addition to the GST for goods and services, the bill also updates the GST treatment for media sales, which focus on the sale of advertising space for printed print and outdoor advertising, advertising time for television and radio broadcasts, and media space for web advertising. refer to email, the web, or mobile devices.
According to this change, from January 1st next year, GST treatment will be based on where the customer and direct beneficiary of the service belongs, rather than where the advertising is distributed.
That is, if the customer of the service is outside of Singapore and the direct beneficiary is either outside of Singapore or is GST registered in Singapore, the media sales will be rated zero. Otherwise, GST will be charged at the standard rate.
Other changes include updating the transitional rules to give people clarity on whether the old or new GST treatment applies, and changes to the rules for registering foreign suppliers, for example to provide tax security.
Meanwhile, the MOF also tabled another bill on Monday to consolidate existing laws to allow government borrowing for investment purposes.
“The amalgamation of existing government borrowing for investment and market development into a single law will clearly separate existing non-spending borrowing from new borrowing to fund large, long-term infrastructure under the recently introduced Major Infrastructure Government Loan Act (Singa)”, said MOF.
Singa will allow the government to borrow to pay for the infrastructure, which will last at least 50 years.
Under the new law, the Local Treasury Bills Act will be merged with the Government Securities Act to create a single credit limit of $ 1.065 trillion. Unlike Singa, these loan proceeds are not intended for expenditure.
The Department of Labor (MOM) also tabled two bills on retirement and reinstatement and the Central Provident Fund (CPF) on Monday.
MOM had already announced that from next year the retirement age will be raised from 62 to 63 and the retirement age from 67 to 68.
This is part of a gradual increase that will set the retirement age to 65 and the re-employment age to 70 by 2030.