Overseas Entity Register for GST in Singapore and Claim Input GST

Overseas entities doing business with Singapore may sometimes incur Singapore Goods and Services Tax (“GST”), even if they do not have a physical office or presence in Singapore. A common example is where an overseas company imports goods into Singapore and pays import GST at the point of importation. The company may also incur Singapore GST when purchasing goods or services from GST-registered suppliers in Singapore.

1. Overseas Vendor Registration (OVR) vs Full Domestic Regime
   
   

   (1)

   Singapore provides an Overseas Vendor Registration (“OVR”) regime for certain overseas suppliers of remote services and low-value goods to customers in Singapore.

   (2)

   Under the Simplified Pay-Only Regime, the registration and GST reporting requirements are simplified. However, the overseas entity registered under Simplified Pay-Only Regime is not entitled to claim input GST incurred in Singapore. Therefore, where an overseas entity incurs significant GST input tax and wishes to recover the GST, it may need to consider registration under the Full Domestic Regime, subject to meeting the relevant conditions.

   
   
2. GST Options for Overseas Entity Import Goods into Singapore
   
   

   (1)	Register for GST and Appoint a Section 33(1) Agent As an overseas entity without a business or fixed establishment in Singapore, the company is required to appoint a Section 33(1) local agent when registering for GST. The Section 33(1) agent acts on behalf of the overseas entity in relation to its Singapore GST matters and is responsible for the accounting and payment of GST.
   (2)	Appoint a Section 33(2) Agent Without Registering for GST Alternatively, the overseas entity may appoint a GST-registered Singapore agent to import and supply the goods on its behalf. This agent is known as Section 33(2) agent.
   (3)	Key Difference The key difference between the two options is who is registered for and accounts for GST in Singapore. Under Section 33(1) agent, the overseas entity register for GST and carries out the importation and supply in its own business name, with a Session 33(1) agent acting on its behalf for GST matters. Under Section 33(1) agent, the overseas entity does not register for GST. Instead, a GST registered Section 33(2) agent imports and supplies the goods for GST purposes and accounts for the relevant GST in its own name.

   
   
3. Conclusion
   
   Subject to meeting the relevant GST registration and input tax claiming conditions. An overseas entity that wishes to import and supply goods in Singapore in its own business name may register under the Full Domestic Regime and appoint a Section 33(1) local agent. Once registered, the company may claim eligible input GST, including import GST, subject to the applicable conditions.
   
   Alternatively, the overseas company may appoint a Section 33(2) agent to import and supply the goods on its behalf, in which case the overseas company itself does not need to register for GST in respect of those transactions.
   
   As the appropriate GST arrangement depends on the company's business model, transaction flow and import arrangements, overseas companies should review their GST position before deciding which option is most suitable.
   
   If your company is importing goods into Singapore and would like to understand whether the import GST can be recovered, our team can assist in reviewing the transaction flow and advising on the appropriate GST registration structure.
   

Disclaimer All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.

If you wish to obtain more information or assistance, please visit the official website of Kaizen CPA Limited at www.kaizencpa.com or contact us through the following and talk to our professionals:
Email: info@kaizencpa.com
Tel: +852 2341 1444
Mobile : +852 5616 4140, +86 152 1943 4614
WhatsApp/ Line/ WeChat: +852 5616 4140
Skype: kaizencpa