On January 1, 2023, Singapore began imposing Goods and Services Tax (GST) on low-value goods costing S$400 or below. Under the Overseas Vendor Registration (OVR) regime, GST-registered overseas suppliers of low-value goods to consumers in Singapore must charge and collect GST at the prevailing rate (9% as of 2024). The implementation of GST on low-value goods came at a time of significant shift in consumer purchasing behaviour from brick-and-mortar stores to e-commerce, particularly during the COVID-19 pandemic. The new measures aimed to ensure equitable taxation and maintain a level playing field, enabling local businesses to compete fairly with international e-commerce sellers and platforms. As early as 2017, the Government explored various approaches to impose GST on transactions conducted over the digital economy as outlined and discussed by the Organisation for Economic Co-operation and Development (OECD). Eventually, the vendor collection model, which is also used in Australia and New Zealand, was adopted because it was assessed to be the most effective and efficient taxation model for Singapore in terms of GST collection, compliance and administrative costs, and feasibility of implementation. Recognising that suppliers would need time to adapt, the policy change was officially announced in 2021, two years before it was implemented. A year into the implementation of GST on imported low-value goods, the Inland Revenue Authority of Singapore (IRAS) and Ministry of Finance, Singapore Customs looked back on the two years of dedicated effort they had invested into the entire process. They believed the seamless rollout, achieved without major issues and a high level of transparency, could be attributed to meticulous planning, early and regular communication, massive outreach efforts, and extensive consultation with businesses like UPS. Ultimately, it demonstrated Singapore’s commitment to aligning tax policies with the ever-evolving global business landscape. The case study on Singapore’s implementation of OVR is co-authored by Annie Koh, PhD, Sin-Mei Cheah (Dr) and Themin Suwardy. It is available at https://smu.sg/mqgk. #SMUCases
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Co-authored by Annie Koh, PhD, Sin-Mei Cheah (Dr) and Themin Suwardy, this case study offers valuable insights into Singapore's implementation of Overseas Vendor Registration (OVR) Regime. Case study available here: https://smu.sg/mqgk. Inland Revenue Authority of Singapore (IRAS) | Ministry of Finance, Singapore Customs #SMUCases #SGTax #OVR
On January 1, 2023, Singapore began imposing Goods and Services Tax (GST) on low-value goods costing S$400 or below. Under the Overseas Vendor Registration (OVR) regime, GST-registered overseas suppliers of low-value goods to consumers in Singapore must charge and collect GST at the prevailing rate (9% as of 2024). The implementation of GST on low-value goods came at a time of significant shift in consumer purchasing behaviour from brick-and-mortar stores to e-commerce, particularly during the COVID-19 pandemic. The new measures aimed to ensure equitable taxation and maintain a level playing field, enabling local businesses to compete fairly with international e-commerce sellers and platforms. As early as 2017, the Government explored various approaches to impose GST on transactions conducted over the digital economy as outlined and discussed by the Organisation for Economic Co-operation and Development (OECD). Eventually, the vendor collection model, which is also used in Australia and New Zealand, was adopted because it was assessed to be the most effective and efficient taxation model for Singapore in terms of GST collection, compliance and administrative costs, and feasibility of implementation. Recognising that suppliers would need time to adapt, the policy change was officially announced in 2021, two years before it was implemented. A year into the implementation of GST on imported low-value goods, the Inland Revenue Authority of Singapore (IRAS) and Ministry of Finance, Singapore Customs looked back on the two years of dedicated effort they had invested into the entire process. They believed the seamless rollout, achieved without major issues and a high level of transparency, could be attributed to meticulous planning, early and regular communication, massive outreach efforts, and extensive consultation with businesses like UPS. Ultimately, it demonstrated Singapore’s commitment to aligning tax policies with the ever-evolving global business landscape. The case study on Singapore’s implementation of OVR is co-authored by Annie Koh, PhD, Sin-Mei Cheah (Dr) and Themin Suwardy. It is available at https://smu.sg/mqgk. #SMUCases
Overseas Vendor Registration Regime: Singapore’s Goods and Services Tax on the Digital Economy
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Together with Ministry of Finance, Singapore Customs, we reflect on the successful transition and implementation of the Overseas Vendor Registration (OVR) regime. Through meticulous planning, regular communication and extensive consultations with stakeholders, we achieved a seamless rollout that fosters a fair and competitive business environment for both local and overseas vendors. This effort underscores IRAS’ commitment to modernising our tax system and keeping pace with the digital economy. Check out the case study published by SMU Centre for Management Practice to learn more about our implementation of the OVR regime.
On January 1, 2023, Singapore began imposing Goods and Services Tax (GST) on low-value goods costing S$400 or below. Under the Overseas Vendor Registration (OVR) regime, GST-registered overseas suppliers of low-value goods to consumers in Singapore must charge and collect GST at the prevailing rate (9% as of 2024). The implementation of GST on low-value goods came at a time of significant shift in consumer purchasing behaviour from brick-and-mortar stores to e-commerce, particularly during the COVID-19 pandemic. The new measures aimed to ensure equitable taxation and maintain a level playing field, enabling local businesses to compete fairly with international e-commerce sellers and platforms. As early as 2017, the Government explored various approaches to impose GST on transactions conducted over the digital economy as outlined and discussed by the Organisation for Economic Co-operation and Development (OECD). Eventually, the vendor collection model, which is also used in Australia and New Zealand, was adopted because it was assessed to be the most effective and efficient taxation model for Singapore in terms of GST collection, compliance and administrative costs, and feasibility of implementation. Recognising that suppliers would need time to adapt, the policy change was officially announced in 2021, two years before it was implemented. A year into the implementation of GST on imported low-value goods, the Inland Revenue Authority of Singapore (IRAS) and Ministry of Finance, Singapore Customs looked back on the two years of dedicated effort they had invested into the entire process. They believed the seamless rollout, achieved without major issues and a high level of transparency, could be attributed to meticulous planning, early and regular communication, massive outreach efforts, and extensive consultation with businesses like UPS. Ultimately, it demonstrated Singapore’s commitment to aligning tax policies with the ever-evolving global business landscape. The case study on Singapore’s implementation of OVR is co-authored by Annie Koh, PhD, Sin-Mei Cheah (Dr) and Themin Suwardy. It is available at https://smu.sg/mqgk. #SMUCases
Overseas Vendor Registration Regime: Singapore’s Goods and Services Tax on the Digital Economy
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Discover Malaysia's sales tax on low-value goods and its impact on consumers and businesses in the e-commerce landscape. Read more: https://lnkd.in/gsFJkp9H Contact us for a FREE consultation! Email: info@premiatnc.com #taxation #malaysia
Sales Tax on Low Value Goods Malaysia | Read on
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The #Malaysian government's recent move to expand the service #tax exemption scope within the #logistics sector, focusing particularly on B2B transactions, signals a significant stride towards enhancing operational efficiency and competitiveness in the industry. By addressing the issue of double taxation or cascading tax effects across the logistics supply chain, this policy adjustment aims to foster a more conducive business environment for logistics service providers. It encompasses a broader range of services, including freight forwarding, warehousing, ports, shipping, and cold chain facilities, thus offering a comprehensive relief that could transform operational dynamics and cost structures. We will keep monitoring Malaysia's policy changes, keeping you informed, and adapting our strategies to ensure our strategies align with the evolving landscape. Follow our page or visit in https://lnkd.in/g9xJEfPF navigating these changes together! https://lnkd.in/gt5Hq-bE
Service tax exemption: Govt to widen scope for logistics, especially B2B
thestar.com.my
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54th GST Council Meeting: Significant Tax Reforms & Trade Facilitation for a Stronger Economy 1. Goods: - Namkeens & Extruded/Expanded Savoury Food Products 🍿: GST rate reduced from 18% to 12% for extruded/expanded savoury products (except un-fried/un-cooked snack pellets). - Cancer Drugs 💉: GST rate on Trastuzumab Deruxtecan, Osimertinib, and Durvalumab reduced from 12% to 5%. - Metal Scrap ♻️: Reverse Charge Mechanism (RCM) introduced for supply by unregistered persons to registered persons; 2% TDS on supply by registered persons. - Railway AC Units 🚆❄️: Roof Mounted Package Unit (RMPU) air conditioning machines for railways to attract 28% GST. - Car & Motorcycle Seats 🛵🚗: Car seats classified under HSN 9401 with 28% GST (up from 18%). 2. Services: - Life & Health Insurance 💼💊: Group of Ministers (GoM) to study GST issues and report by October 2024. - Passenger Transport by Helicopter 🚁: 5% GST on seat-sharing services; 18% for charter services. - Flying Training ✈️: DGCA-approved flying training courses exempted from GST. - Research & Development Services 🧑🔬📚: GST exemption for R&D services by Government Entities, universities, or institutions notified under Section 35 of the Income Tax Act. - Preferential Location Charges (PLC) 🏗️: PLC for construction services to be treated as part of composite supply of main construction services. - Affiliation Services 🎓: GST exemption for affiliation services provided by state/central educational boards to government schools; 18% GST for universities' affiliation services. 3. Other Measures: - B2C e-Invoicing 🧾: Pilot for B2C e-invoicing to be rolled out in select sectors/states. - New Ledgers 📒: Introduction of RCM ledger, Input Tax Credit (ITC) Reclaim ledger, and Invoice Management System (IMS). - Renting Commercial Property 🏢: Renting of commercial property by unregistered persons to registered persons brought under RCM. - Import Services by Foreign Airlines ✈️📦: Exemption for import services by foreign airline branches in India when done without consideration. - Ancillary Services in Goods Transport 🚛: Clarification on classifying ancillary services by GTA as part of composite supply. 4. Measures for Trade Facilitation: - Waiver of Interest/Penalty ⚖️: New rule 164 for waiving interest/penalty under section 73 of CGST Act for FY 2017-18 to 2019-20. - Section 16 Amendments ✏️: Special procedure for rectifying wrong input tax credit (ITC) claims under Section 16 of the CGST Act. 5. GST Clarifications: - Export Refunds & Place of Supply 🌍: Clarifications on IGST refunds for exporters, place of supply for advertising services, demo vehicle ITC, and data hosting services. #GSTCouncilMeeting #TaxReforms #BusinessUpdates #TradeFacilitation #GoodsAndServices #TaxRelief #IndianEconomy #GSTChanges #mpcs #money_pluse_consultancy_services CA Harsh Mehta ADV. (CS) Lokesh Shah CA Sunilkumar Patel ADV. Mitesh Karavadiya Malay Deliwala
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54th GST Council Meeting: Significant Tax Reforms & Trade Facilitation for a Stronger Economy 1. Goods: - Namkeens & Extruded/Expanded Savoury Food Products 🍿: GST rate reduced from 18% to 12% for extruded/expanded savoury products (except un-fried/un-cooked snack pellets). - Cancer Drugs 💉: GST rate on Trastuzumab Deruxtecan, Osimertinib, and Durvalumab reduced from 12% to 5%. - Metal Scrap ♻️: Reverse Charge Mechanism (RCM) introduced for supply by unregistered persons to registered persons; 2% TDS on supply by registered persons. - Railway AC Units 🚆❄️: Roof Mounted Package Unit (RMPU) air conditioning machines for railways to attract 28% GST. - Car & Motorcycle Seats 🛵🚗: Car seats classified under HSN 9401 with 28% GST (up from 18%). 2. Services: - Life & Health Insurance 💼💊: Group of Ministers (GoM) to study GST issues and report by October 2024. - Passenger Transport by Helicopter 🚁: 5% GST on seat-sharing services; 18% for charter services. - Flying Training ✈️: DGCA-approved flying training courses exempted from GST. - Research & Development Services 🧑🔬📚: GST exemption for R&D services by Government Entities, universities, or institutions notified under Section 35 of the Income Tax Act. - Preferential Location Charges (PLC) 🏗️: PLC for construction services to be treated as part of composite supply of main construction services. - Affiliation Services 🎓: GST exemption for affiliation services provided by state/central educational boards to government schools; 18% GST for universities' affiliation services. 3. Other Measures: - B2C e-Invoicing 🧾: Pilot for B2C e-invoicing to be rolled out in select sectors/states. - New Ledgers 📒: Introduction of RCM ledger, Input Tax Credit (ITC) Reclaim ledger, and Invoice Management System (IMS). - Renting Commercial Property 🏢: Renting of commercial property by unregistered persons to registered persons brought under RCM. - Import Services by Foreign Airlines ✈️📦: Exemption for import services by foreign airline branches in India when done without consideration. - Ancillary Services in Goods Transport 🚛: Clarification on classifying ancillary services by GTA as part of composite supply. 4. Measures for Trade Facilitation: - Waiver of Interest/Penalty ⚖️: New rule 164 for waiving interest/penalty under section 73 of CGST Act for FY 2017-18 to 2019-20. - Section 16 Amendments ✏️: Special procedure for rectifying wrong input tax credit (ITC) claims under Section 16 of the CGST Act. 5. GST Clarifications: - Export Refunds & Place of Supply 🌍: Clarifications on IGST refunds for exporters, place of supply for advertising services, demo vehicle ITC, and data hosting services. #GSTCouncilMeeting #TaxReforms #BusinessUpdates #TradeFacilitation #GoodsAndServices #TaxRelief #IndianEconomy #GSTChanges #mpcs #money_pluse_consultancy_services CA Harsh Mehta ADV. (CS) Lokesh Shah CA Sunilkumar Patel ADV. Mitesh Karavadiya Malay Deliwala
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As the digital economy and cross-border e-commerce expand, digital tax has become a topic of great interest for governments and businesses alike. In our latest article on the State of Digital Taxation in Vietnam, we introduce the approach of Vietnam - a rising star in the global digital economy. 📊 Key Highlights: · Vietnam has a booming digital economy, which is expected to reach US$ 90-200 billion by 2030. · Overseas Suppliers of digital products (goods and services) are subject to different Corporate Income Tax (CIT) and Value-Added Tax (VAT) rates will be applied depending on the nature of the activities. · Overseas Suppliers must track certain information to identify if their consumer is based in Vietnam for the tax declaration. · Overseas Suppliers without a permanent establishment in Vietnam are required to register with the Vietnamese Tax Authority for tax declaration and payment or to authorise a Vietnamese entity to do so. · If Overseas Suppliers fail to comply, their Vietnamese counterparts (B2B) or banks and IPSPs (for B2C) are tasked with withholding the taxes. 🔗 Read the full article here: https://bit.ly/3Ku7hF1 We look forward to your thoughts and discussions on this pressing topic. Let's drive the conversation forward on the impact of digital taxation! #DigitalTaxation #VietnamEconomy #InternationalEconomics #DigitalEconomy #BusinessInsights Paul Baker Loan Le
Vietnam: The State of Digital Taxation - International Economics
tradeeconomics.com
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🌎 Chile's New VAT Bill Could Reshape E-commerce for International Suppliers! Chile's recently approved Tax Reform Bill is introducing sweeping VAT changes impacting e-commerce and digital goods. Notably, it will: -Impose a 19% VAT on low-value imports under a simplified system for non-resident sellers. -Eliminate VAT exemptions on goods supplied from abroad to Chilean consumers. -Introduce anti-avoidance rules targeting asset transfers in reorganizations. Tax pros and e-commerce operators—get ready to adapt! Learn more about these potential new compliance requirements and share your thoughts. 👉 Read full article https://lnkd.in/dApqEFDz #VAT #Chile #Ecommerce #DigitalTax #TaxReform #GlobalBusiness
Chile's Tax Reform Bill: Major VAT Changes Impacting E-commerce & Digital Goods - VATabout
vatabout.com
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"Understanding VAT in Uganda- Key Points for SMEs to Note" VAT also known as Value Added Tax is a tax charged on taxable supplies made in Uganda by taxable persons , imports of goods other than exempt imports and supply of imported services. For SME's understanding VAT is not just about tax obligations- It's about leveraging opportunities to streamline operations and enhance growth Who is required to register for VAT? 📍 Compulsory Registration: A business is required to be registered if the turnover of the taxable supplies of the enterprise for 3 consecutive months is UGX 37.5 million or UGX 150million annually 📍 Voluntary Registration: Businesses below the compulsory threshold can voluntarily register for VAT when working with larger companies. However the Commissioner General can deny registration if: 1. The person has no fixed place of business 2. If the Commissioner General has grounds to believe that the person won't keep proper accounting records relating to the business activity, will not submit regular and reliable returns and is not a fit and proper person to be registered VAT Deductions and Input Tax 📍 Registered Businesses can deduct VAT paid on purchases (Input VAT) from the VAT charged on sales. This mechanism prevents VAT from becoming a cost to businesses as long as the goods and services are taxable supplies used during the course of ordinary business Tax Refund 📍 Where the input VAT (purchases) is greater than the output VAT (sales) the difference becomes VAT refundable, which can be claimed as a refund. Where the VAT refundable is more than UGX 5 million, an individual can opt to claim the refund from URA or offset that amount against any future liability. VAT Compliance and Penalties 📍 VAT returns are filed monthly by the 15th of the following month. Penalties relating to VAT include: ✖ Failure to submit return by the due date: UGX 200,000 and 2% interest (whichever is greater) ✖ Failure to maintain accurate records: Fine not exceeding UGX 2,000,000 ✖ Failure to pay the outstanding return: Penal tax of 2% of the tax amount for the period the amount remains outstanding Benefits of VAT Registration ✔ Enhances your ability to supply large organizations that require VAT invoices ✔ Prevents unfair assessments and the risk of penalties for non-registration. ✔ Promotes proper tax compliance, reducing risks of penalties related to filing and payment issues. Key Points to note: 📌 Maintain accurate records of all sales and purchases to claim input VAT effectively 📌 Keep a close eye on your business turnover as it grows to avoid missing compulsory registration deadlines. 📌 Implement a tax filing system or engage a tax consultant to ensure timely returns and avoid penalties. ☎ Want to ensure your business is VAT compliant? Let's talk! Call us on 0704532285 #TaxConsultancy #TaxComplaince #TaxTips #BusinessGrowth
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Billions of dollars worth of products are transacted via Shopee and TikTok each month. Should they be exempted from VAT? On the afternoon of April 23, continuing the 32nd session, the Standing Committee of the National Assembly gave its opinion on the draft Law on Value Added Tax (amended). Presenting the examination report, Mr. Le Quang Manh, Chairman of the Finance and Budget Committee, said that the issue of great concern to the investigation agency is the inclusion of provisions on not collecting value added tax (VAT) on gifts, donations, properties falling within the import tax exemption threshold, and the exemption of VAT on imported goods of small value. Mr. Le Quang Manh, Chairman of the Finance and Budget Committee. (Photo: Duy Linh) According to Mr. Le Quang Manh, the exemption of VAT on imported goods of small value derives from the fact that the tax revenue is insignificant compared to the cost of tax administration by the customs authorities and the cost of tax compliance by taxpayers. ” Previously, the quantity of imported goods of small value was not too large, so the overall impact on tax revenue was insignificant. Currently, with the boom of cross-border e-commerce, the common trend in many countries shows that the volume of cross-border trade in goods of small value has increased several times in recent times “, Mr. Le Quang Manh stated the reality. The examination report cites data from the Vietnam Posts and Telecommunications Corporation, indicating that as of March 2023, there were an average of approximately 4–5 million orders per day being transported from China to Vietnam, with the value of each order divided into 100,000–300,000 VND. Daily, there is an average of approximately 45–63 million USD, and monthly, there is approximately 1.3–1.9 billion USD worth of goods being circulated through the platforms Shopee, Lazada, Tiki, TikTok, etc. ” Currently, many countries have removed the provision on the exemption of VAT on imported goods of small value to protect tax revenue and create an equal business environment between domestically produced goods and imported goods. Therefore, it is recommended that the Government refer to the general trend to consider removing this provision, facilitating the expansion of and generalizing tax revenue sources in the context of current budget constraints “, the Chairman of the Finance and Budget Committee said. Speaking at the meeting about the subjects not subject to VAT, Mr. Vuong Dinh Hue, Chairman of the National Assembly, raised the issue of whether the press and publishing sector is included in this draft law. ” Currently, both print and electronic newspapers are facing difficulties. Previously, we only mentioned print newspapers, but now electronic newspapers are also encountering challenges due to the strong development of online platforms. The press economy is facing a great deal of hardship in the conditions of the strong dev...
Billions of dollars worth of products are transacted via Shopee and TikTok each month. Should they be exempted from VAT? On the afternoon of April 23, continuing the 32nd session, the Standing Committee of the National Assembly gave its opinion on the draft Law on Value Added Tax (amended). Presenting the examination report, Mr. Le Quang Manh, Chairman of the Finance and Budget Committee...
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3wThanks for writing up this case! Inland Revenue Authority of Singapore (IRAS) / Ministry of Finance, Singapore Customs