Overseas Vendor Registration Regime
Satish Bakhda
Serial entrepreneur and investor in private equity, venture capital, roll ups, and asset-backed lending.
What is Overseas vendor registration regime?
With effect from 1 January 2020, GST will be applied to cross-border Business-to-Customer (B2C) supplies (such as supplies made to individuals and businesses that are not registered for GST in Singapore) of imported digital services through the overseas vendor registration (OVR) regime. This is to level the playing field in GST treatment for both local and overseas services.
According to the Inland Revenue Authority of Singapore (IRAS) guidelines, ‘digital services’ are services supplied over the internet or an electronic network, where the supply is automated and involves minimal or no human intervention, and is impossible without the use of information technology. These include the supplies of digital products, subscription-based and licensed content as well as support services to arrange or facilitate, via electronic means, the provision of transactions that may not be digital in nature.
Compulsory GST registration on imported services:
An overseas supplier, local or overseas electronic marketplace operator will be liable for GST registration within 30 days at the end of the relevant calendar year or making the forecast, under either the retrospective or prospective basis, if the following conditions are met:
How to Assess your GST registration liability?
Our team of tax professionals can help to assess if the OVR rules would apply and advise on the appropriate course of action. Reach out to us to find out more!