Overseas Vendor Registration Regime
FAQs
As more services are consumed “digitally”, it is becoming important for tax authorities to update tax rules to maintain a level playing field between domestic businesses and foreign businesses providing digital services.
To align the Goods and Services Tax (“GST”) treatment for all digital services consumed in Singapore, GST will apply to imported business-to-consumer (“B2C”) digital service transactions with effect from 1 January 2020. This will be achieved through an Overseas Vendor Registration (“OVR”) regime.
The OVR regime will have an impact on overseas vendors supplying digital services to customers in Singapore and operators of electronic marketplaces supplying digital services on behalf of suppliers and merchants through their marketplace to customers in Singapore. They will be required to register, charge and account for GST if certain conditions are met.
In this article, we have compiled some frequently asked questions on how the OVR regime is applicable to overseas vendors and operators of electronic marketplaces.