Singapore Updates GST Guidance on Purchasing
Remote Services from Overseas Providers

The Inland Revenue Authority of Singapore (IRAS) has published updated guidance on Purchasing Remote Services from Overseas Service Providers. The update consolidates information on the GST (Goods and Services Tax) treatment for remote services, which includes both digital and non-digital services, and introduces new clarity on compliance.

Key Highlights from the New Guidance:

• Authority to Charge GST: Only GST-registered overseas service providers are authorized to charge and collect GST from consumers in Singapore. Consumers can use the GST-registered Business Search to verify the provider’s registration status and should report wrongful collection by unregistered vendors.
• Conditions for Claiming Input Tax: Guidance on the conditions for claiming Input Tax by GST-registered businesses has been updated.
• OVR Invoices are Invalid for Input Tax: A crucial update is the inclusion of invoices issued by an overseas vendor registered under the Overseas Vendor Registration (OVR) regime as an example of an invalid tax invoice for claiming input tax.
• Rule for GST-Registered Buyers: If a local GST-registered business purchases remote services or low-value goods, they should not be charged GST. If they are incorrectly charged, they must contact the overseas vendor to obtain a refund, instead of claiming the Input Tax on the purchase.

These updates are vital for businesses to ensure correct GST treatment and compliance when procuring services from vendors abroad.

https://www.iras.gov.sg/taxes/goods-services-tax-(gst)/consumers/purchasing-remote-services-from-overseas-service-providers