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GST on Digital Services to Kick in Next Month, More than 100 Vendors Already Registered

Starting from 1 Jan 2020, consumers will have to pay 7 percent GST on overseas digital services such as Netflix.

Other such services include video streaming, apps, listing fees on electronic marketplaces, software and online subscription fees.

More than 100 vendors have since registered to charge GST, under the Overseas Vendor Registration scheme.

When implemented, the scheme is expected to pull in about S$90 million in tax revenue each year.

The implementation of the OVR scheme follows a Bill passed in November 2018, which requires overseas vendors to pay GST if they have an annual global turnover above S$1 million and make more than S$100,000 in providing digital services to Singapore.

Currently, GST is charged only on locally procured services.

Concerns have been raised as to whether people from lower income groups will be further disadvantaged.

Currently, many use online learning and entertainment services because they are lower-priced.

However, the government has reiterated that the GST voucher scheme is in place to help those from low income households.



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