When you buy services online from companies outside Singapore — such as software subscriptions, streaming services, or online classes — you might assume no local tax applies. However, under Singapore’s Goods and Services Tax (GST) regime, remote services purchased from GST‑registered overseas service providers are subject to GST when consumed in Singapore. This article explains what counts as a remote service, when GST is payable, examples, and key steps for consumers and businesses.
1. What Are “Remote Services” for GST Purposes?
Remote services are services that you can receive without being physically present where the service is performed. This includes both digital 和 non‑digital services supplied over the internet or electronically.
Common examples include:
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Subscription media (movies, music, news)
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Downloadable content (apps, e‑books)
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Cloud storage and software programs
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Online support, booking or facilitation services
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Professional services delivered remotely (e.g., consultancy or advisory)
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Personal services like online fitness coaching or telemedicine
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Online education, membership, and exam services
Services requiring you to be physically present — like salon services, local events or land tours — are not treated as remote services for GST purposes.
2. When Is GST Payable on Overseas Remote Services?
From 1 January 2023, Singapore’s GST system expanded to apply to all remote services (digital and non‑digital) sold to non‑GST‑registered customers in Singapore (i.e., consumers and businesses not registered for GST).
Key Conditions for GST to Apply:
✅ The overseas service provider is GST‑registered under the Overseas Vendor Registration (OVR) regime.
✅ You are a non‑GST‑registered customer in Singapore.
✅ The service qualifies as a remote service.
Overseas vendors must register for GST in Singapore if:
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Their global turnover exceeds S$1 million, 和
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Sales of remote services to Singapore customers exceed S$100,000 annually.
Once registered, the overseas provider must charge GST at the prevailing rate on your purchase and remit it to IRAS.
3. Practical Examples
Here are real‑world examples to show how GST applies:
Example 1: Streaming Subscription
Grace subscribes to a video streaming service from an overseas vendor. If that vendor is GST‑registered under OVR, GST will be charged on her subscription fees.
Example 2: Mobile App Purchases
John buys paid apps and in‑app purchases from an overseas app store. Since these are remote digital services, GST applies if the provider is GST‑registered.
Example 3: Online Fitness Coaching
Natalie purchases online personal trainer sessions from an overseas company. With the expanded regime, GST is now payable on her fees if the provider is GST‑registered.
4. Price Display & Providing Correct Information
Because many overseas service providers operate globally, they might not display Singapore GST in prices shown on their platforms. In such cases, providers may add GST only after determining you are a Singapore consumer.
As the consumer, it’s your responsibility to provide accurate billing and payment information (such as Singapore address or payment details) to help providers correctly determine whether GST should apply.
If a provider wrongfully charges GST when they are not GST‑registered, you can report this to IRAS.
Final Words
Singapore’s GST treatment of remote services from overseas vendors aims to create a level playing field between local and foreign service providers, ensuring similar tax treatment regardless of where services originate. By understanding when GST is payable and how remote services are defined, consumers and businesses can avoid surprises and stay compliant.
Disclaimer: This article is for informational purposes only and does not constitute any professional advice. Feel free to contact us to consult with our professional advisors team for personalized advice and guidance.
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