Singapore updates Low Value Goods GST policy

Francisco Gomes
February 8, 2023

Singapore’s new Low Value Goods (LVG) rules came into effect at the beginning of the year. As of 1 January 2023, private consumers in the country must pay 8% GST on goods valued up to SGD 400 imported via air or post from GST-registered suppliers.

From 1 January 2024, the GST will increase to 9%.

Prior to this change , Low Value Goods procured locally from GST-registered businesses were subject to GST. Goods imported overseas via air or post were not. This change treats all goods consumed in Singapore in relation to GST.

The SGD 400 threshold does not include:

  • Transportation
  • Insurance costs
  • Any duties payable to Singapore Customs

For example, a private individual orders an item that costs SGD 390. Additional transportation fees are SGD 20. As the threshold excludes transportation fees, the product’s value is SGD 390. The consumer will have to pay GST on the purchase to the supplier.

Since 1 January 2023, GST is also levied on supplies of imported non-digital services purchased from GST-registered overseas suppliers. As a result, all B2C supplies of imported services – digital or otherwise – that are supplied and received remotely are taxed.

Non-established suppliers – such as electronic marketplace operators and re-deliverers – must register, charge and account for GST where:

  1. Their global annual turnover exceeds SGD 1 million
  2. The value of B2C supplies of import low value goods, digital services and non-digital services made to non-GST-registered customers in Singapore exceeds SGD 100,000

Companies may also voluntarily register.

Businesses should assess if these changes trigger the need to register for GST and other compliance challenges.

Need help with tax compliance in Singapore?

Still have questions about GST in Singapore? Speak to our tax experts.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.


Francisco Gomes

Francisco joined Sovos in 2022 as a Senior Consultant. He holds a Degree in Law with specialization in Fiscal Law and has 7+ years of cross-border VAT experience working in big multinational companies. Francisco specializes in VAT compliance obligations, tax due diligence and tax consulting advisory focusing on indirect taxes within the EU.
Share this post

IPT Spain
November 29, 2023
Taxation of Motor Insurance Policies: Spain

There is a wide variety of indirect taxes and parafiscal charges that apply to the different elements of coverage that can be included under a motor insurance policy in Spain. You can read our blog to learn more about taxation of motor insurance policies in Europe, this blog focuses on some of the specifics to […]

EMEA VAT & Fiscal Reporting
November 23, 2023
6 Possible Pitfalls in the Pursuit of VAT Compliance

The convergence of traditional Value Added Tax (VAT) and transactional compliance regimes is creating new obligations and responsibilities for companies doing business around the world. When it comes to VAT, compliance is so much more than just reporting. Here are six pitfalls you should avoid in the pursuit of VAT compliance:   1. Making the […]

E-Invoicing Compliance EMEA
October 23, 2023
Understanding the French E-Invoicing Mandate Delay: Five Ways to Make it Work for You

When it was announced recently that the introduction of a new French e-invoicing mandate had been delayed until September 2026 there was a collective sigh of relief amongst many in the tax and finance world. More time to adequately prepare, put systems and methodologies in place and have your business ready to be compliant from […]

EMEA VAT & Fiscal Reporting
October 23, 2023
Greece’s VAT reform: What you need to know

Greece’s VAT reform started back in 2020 and it has manifested itself in three continuous transaction control (CTC) initiatives. Namely, the initiatives are: myDATA e-audit scheme Voluntary CTC e-invoicing, performed through service providers who must meet certain certification criteria New generation cash registers which report B2C data to myDATA in real time Recently, the introduction […]

E-Invoicing Compliance EMEA
October 11, 2023
Types of e-documents

E-documents or electronic documents are rapidly growing in usage across businesses of all shapes and sizes, in countries around the world. While the automated exchange of e-documents is a relatively new phenomenon which is being adopted on a country-by-country basis, there is basic universal information that your business would benefit from understanding – and potentially […]