New Singaporean legislation to impact UK and EU exporters and e-commerce businesses
Eurora Solutions, the provider of an AI/ML-powered (artificial intelligence/machine learning) cross-border trade compliance platform, notes the upcoming regulation changes in Singapore, which directly affects UK and EU companies exporting low-value goods to Singapore.
From January 1st 2023, the Singapore GST exemption on imported low-value goods (up to S$400 or £250) will be discontinued, and all goods delivered to Singapore via air or post will be subject to GST. Simultaneously, the current GST rate will rise from seven per cent to eight per cent.
From the beginning of next year, overseas vendors are liable for registration, under either the retrospective or prospective basis, if they have a global turnover exceeding S$1 million (£626,000/€717,500) and supply B2C low-value goods and remote services (i.e. digital services) to Singapore, exceeding S$100 000 (£62,100/€71,800) in value. Businesses exceeding these thresholds could start registering for GST on 1 October 2022.
Eurora makes compliance seamless
As the extension of GST is similar to the legislative changes introduced by the EU, Eurora, through its wholly-owned subsidiary, a Singapore-based logistics provider GTS Express, is ideally placed to make for affected businesses. Eurora’s tax consultants help businesses navigate the changes in legislation whilst the companies can focus on growing their business. Registration for the scheme with Eurora can take as little as two hours, and thanks to the company’s AI/ML-powered technology, Eurora can offer its services at an unmatched quality and price point.
A global trend of scrapping VAT exemptions
Singapore’s move follows a global trend to scrap the VAT or GST exemptions on imported online sales of goods. Countries such as and the recently scrapped the VAT exemption for low-value goods, and in July 2021, the followed suit. Governments worldwide aim to create a level playing field for national online and high-street retailers and boost tax revenues following the rapid growth of e-commerce during the COVID-19 crisis. According to ‘s coverage of IBM’s US Retail Index,
overseas vendor registration regime without companies having to navigate the paperwork. Additionally, our proprietary AI/ML-powered cross-border compliance platform calculates the GST and automates filing the necessary documentation with the Singaporian customs authorities, allowing companies to focus on their core business