Singaporeans reminded that goods bought overseas are subject to GST here
By Amelia Teng, The Straits Times, 31 May 2014
SINGAPORE Customs issued twice as many warnings and fines last year compared with 2012, to people who did not declare goods bought overseas that are liable to be taxed here.
By Amelia Teng, The Straits Times, 31 May 2014
SINGAPORE Customs issued twice as many warnings and fines last year compared with 2012, to people who did not declare goods bought overseas that are liable to be taxed here.
It handed out 398 warnings and fines known as composition sums last year to people who did not declare goods bought abroad with values exceeding the goods and services tax (GST) relief amounts of $150 and $600. In 2012, there were 179 cases.
The number of cases include first-time and repeat offenders and items found at land, air and sea checkpoints.
On Tuesday, The Straits Times ran a story that reminded Singaporeans to pay GST on their overseas shopping.
On Tuesday, The Straits Times ran a story that reminded Singaporeans to pay GST on their overseas shopping.
All goods, including souvenirs, gifts and products for personal use, brought into Singapore are subject to 7 per cent GST.
The story went viral online, with many readers expressing surprise that the rule existed, and some questioning the "low threshold" of $600.
In response, Singapore Customs said the policy of imposing GST on goods brought into Singapore is not new.
It has been in force since April 1, 1994, when GST was first implemented in Singapore. The practice of imposing GST on imports is found in all countries with GST or value-added-tax systems.
Under the rules, if a traveller is out of Singapore for less than 48 hours, he does not have to pay GST on goods valued below $150. If he is out of the country for more than 48 hours, goods valued up to $600 are exempt from GST.
This is double the previous relief amount of $300, which was increased in 2012 to keep pace with rising expenditures.
This is double the previous relief amount of $300, which was increased in 2012 to keep pace with rising expenditures.
On arrival, travellers carrying products exceeding the GST relief or duty-free allowance are required to declare the goods at the Red Channel.
They can pay tax at the Singapore Customs tax payment office or at the self-service tax payment kiosk at checkpoints.
Failure to declare the value of purchases is an offence under the Customs Act and the GST Act. Offenders can be prosecuted in court and fined up to $10,000 and jailed for up to three years.
A Singapore Customs spokesman said that GST is applicable for items brought into the country even if foreign sales tax was paid on them, as they will be used here.
If receipts are not available, the value of goods will be assessed based on that of identical or similar goods, he added.
Mrs Abigail Tan, who works in the finance industry, said she had not heard of such a rule.
"I got a shock when I read the news. That makes going overseas to shop quite pointless," said the 27-year-old, who bought a bag for a few thousand dollars on a holiday in Europe this month.
She saved nearly $1,000 by buying the bag abroad because of overseas tax rebates. But she said: "I probably wouldn't spend more than $600 from now onwards on my next trips because of the risk involved."
GST rule for travellers: Singapore Customs replies
WE THANK Mr Trent Ng Yong En for his letter ("Review GST rule on goods bought overseas"; Monday), where he questioned the effectiveness of enforcing the goods and services tax (GST) rule on goods brought in by travellers and suggested that the Government review the rule.
WE THANK Mr Trent Ng Yong En for his letter ("Review GST rule on goods bought overseas"; Monday), where he questioned the effectiveness of enforcing the goods and services tax (GST) rule on goods brought in by travellers and suggested that the Government review the rule.
GST is a tax on consumption in a country. Similar to goods purchased in Singapore, goods imported or brought into Singapore for consumption are also subject to GST.
It is inconsistent to exempt an individual from paying GST on goods that he personally brings into Singapore, when GST is payable on goods imported via other modes (for example, by postal parcels) or purchased locally. Our GST practice is the same as other countries' in this regard.
Nonetheless, we recognise that it is common for travellers to bring into Singapore souvenirs and gifts purchased overseas.
To facilitate the flow of travellers at the checkpoints and tax administration, GST relief is granted for goods valued up to $600.
Travellers are required to comply with the GST rule and violations are subject to penalties.
The rule is displayed on prominent signboards before the customs clearance points in the arrival halls of our major checkpoints.
Brochures in different languages are also available.
To complement the self-declaration system for GST payment, routine checks are conducted at the checkpoints.
We assure Mr Ng that our officers are trained to assess the specifics of each case, such as the condition of the goods presented, to ascertain whether the goods are liable for GST payment.
Travellers are advised to consult Singapore Customs officers at the Tax Payment Office if they are unsure about the GST relief they are entitled to, or whether the items that they are carrying are liable for GST payment.
People who are transferring their residence to Singapore after staying overseas for more than six months, like Mr Ng, are granted GST relief for the importation of their used household articles and personal effects, subject to certain conditions.
In addition, reasonable quantities of personal belongings hand-carried by travellers or in their luggage are not subject to GST.
More information on this is available on the Singapore Customs website (www.customs.gov.sg).
Edgar Lee
Head
Corporate Communications
Singapore Customs
ST Forum, 7 Jun 2014
Head
Corporate Communications
Singapore Customs
ST Forum, 7 Jun 2014
Review GST rule on goods bought overseas
I READ the Singapore Customs' online travel advisory on goods and services tax (GST) payable on shopping done abroad, and question the advisory's effectiveness and how Customs intends to enforce this law.
Singaporeans travel regularly and often bring back goods worth more than $600, without paying any GST.
There are many inherent difficulties in the policy to tax a traveller who shopped abroad.
The Customs website states that GST is payable for "new items brought in by a bona fide traveller" that include "new articles, souvenirs, gifts and food preparation which are for personal use and not meant for sale".
"New articles" imply goods that are unused, still in their packaging or with labels still attached and so on.
This suggests that travellers who wish to avoid paying GST merely need to use their articles before returning to Singapore, such as wearing their new clothes or start using the new gadget.
As a university exchange student who has been abroad for six months now, I have surely purchased goods worth more than $600, including clothing I have worn and books I have read.
Will they count as "new articles" upon my return to Singapore?
Another inherent difficulty would be where records are not kept. Singaporeans who shop in places such as Bangkok and Hong Kong may have made purchases with no receipts.
Travellers like myself who have been abroad for a much longer time also face the onerous duty of maintaining a record of all our purchases.
I understand that Customs officers are empowered to make an assessment where receipts are lacking. This may result in inaccurate assessments if these officers cannot tell luxury items from non-luxury ones.
The law on taxing shopping done abroad is too vague and difficult to police, short of causing massive congestion at Customs checkpoints.
The Government should review this law - either to repeal it for its vagueness or to issue better guidelines on its implementation.
Trent Ng Yong En
ST Forum, 2 Jun 2014
ST Forum, 2 Jun 2014
Travellers returning to Singapore to pay GST for purchases
The Straits Times, 27 May 2014
The Straits Times, 27 May 2014
June is coming and that means overseas holidays for many families. But beware of lugging back too much shopping from your jaunts as your spoils could be subject to Goods and Service Tax (GST) once you get home.
Singapore Customs has issued an advisory to remind travellers that GST is exempt only for certain values. If you travel out of Singapore for less than 48 hours, then you will not have to pay GST for goods valued up to $150. If you are away for more than 48 hours, you are exempt from GST for goods valued up to $600.
Travellers will have to pay GST only on the value of the goods that exceeds the GST relief. For example, if you buy $800 worth of goods on a four-day trip to Hong Kong, you will need to pay GST for the $200 worth of goods. At 7 per cent, that comes up to $14.
You will have to produce invoices or receipts of these purchases to help calculate the tax payable. You can pay taxes at the Singapore Customs' Tax Payment Office or at the self-service Tax Payment Kiosk at the checkpoints.
Failure to declare the value of your purchases is an offence under the Customs Act and the GST Act. Offenders may be prosecuted in court, fined up to $10,000 and jailed for up to three years.
There is no GST relief for liquor, tobacco products, petroleum and goods imported for commercial purposes.
For more information on customs rules, go to www.customs.gov.sg.
On Tuesday, a Straits Times story which reminded Singaporeans to pay Goods and Services Tax on their overseas shopping went viral.
Singapore Customs explains that the policy of imposing GST on goods brought into Singapore is not new. It has been in force since April 1, 1994 when GST was first implemented in Singapore.
According to the rules, if a traveller is out of Singapore for less than 48 hours, he does not have to pay GST for goods valued below $150. If you are out of the country for more than 48 hours, GST is exempt for goods valued up to $600.
Here is a detailed FAQ on what you need to know about how GST applies to your shopping spoils from overseas holidays.
1. Why do Singaporeans have to pay GST on their purchases overseas?
1. Why do Singaporeans have to pay GST on their purchases overseas?
GST is a tax on local consumption. As such, all goods brought into Singapore are subject to 7 per cent GST regardless of whether they are imported through commercial shipments or hand-carried by travellers for their own personal use. Such goods include new articles, souvenirs, gifts and food preparations purchased overseas and meant for the traveller’s personal use.
The practice of imposing GST (known in some countries as Value Added Tax) on imports is consistent in all countries with GST or Value Added Tax systems.
To minimise inconvenience to international travellers and returning residents who bring a small amount of goods into Singapore for their personal use or consumption, GST relief is granted and the amount is based on the value of goods they bring in and the period that they are away from Singapore. Travellers will have to pay GST on the value of the goods which is in excess of the GST relief granted to them.
2. If a traveller receives a gift, how is the tax calculated since he/she will not have a receipt and will not be able to estimate the value of the gift? What if the gift is a vintage object? What if you say you have no receipts at all for the items?
2. If a traveller receives a gift, how is the tax calculated since he/she will not have a receipt and will not be able to estimate the value of the gift? What if the gift is a vintage object? What if you say you have no receipts at all for the items?
If the receipts are not available, the value of the goods will be assessed based on the values of identical or similar goods when computing the GST payable.
3. How many people have been caught not declaring taxable goods in the past year? If I'm caught but I say I will pay the GST there and then, will I still be charged? What is the process if I'm charged? Do I go to court or can it be settled with a fine? Will I have a criminal record?
3. How many people have been caught not declaring taxable goods in the past year? If I'm caught but I say I will pay the GST there and then, will I still be charged? What is the process if I'm charged? Do I go to court or can it be settled with a fine? Will I have a criminal record?
Travellers who are stopped at the checkpoints for not declaring goods purchased abroad with values exceeding their GST relief quantum will be referred to Singapore Customs. The GST due is collected from the travellers, with an advisory to pay GST for goods exceeding their GST relief. For repeat offenders and persons carrying commercial goods, warnings or composition sums may be issued. In 2012 and 2013, there were 179 and 398 cases respectively where warnings or composition sums were issued.
4. What if I buy a $1,000 bag from one of the shops at Changi Airport's duty free while leaving Singapore - will I be taxed on the bag when I come back together with the bag?
4. What if I buy a $1,000 bag from one of the shops at Changi Airport's duty free while leaving Singapore - will I be taxed on the bag when I come back together with the bag?
The newly purchased bag is subject to GST if it exceeds the traveller’s GST relief amount.
5. If a traveller removes the price tag/packaging and uses the item bought overseas immediately, is the item still subject to GST?
5. If a traveller removes the price tag/packaging and uses the item bought overseas immediately, is the item still subject to GST?
These items are considered as new articles and are subject to GST if the traveller’s GST relief amount is exceeded when the new items are brought into Singapore.
6. If I have already paid sales tax for an item overseas and did not claim tax rebate, do I still have to pay GST?
6. If I have already paid sales tax for an item overseas and did not claim tax rebate, do I still have to pay GST?
GST is applicable for items imported into Singapore regardless of whether foreign sales tax was paid for the items overseas as the items will be consumed in Singapore.
7. Are goods shipped back separately (from same trip) also subject to GST?
For goods imported by post, a GST relief amount of up to $400 per shipment is granted. Where the value of the shipment exceeds $400, GST is payable on the total value of the shipment.
7. Are goods shipped back separately (from same trip) also subject to GST?
For goods imported by post, a GST relief amount of up to $400 per shipment is granted. Where the value of the shipment exceeds $400, GST is payable on the total value of the shipment.
With the new Singapore Customs mobile app Customs@SG, you can now declare and pay the duty and/or Goods and Services Tax...
Posted by Singapore Customs on Wednesday, January 13, 2016
* New Customs app makes paying duties, GST easier
Free app allows travellers to declare goods purchased overseas, pay taxes in advance
By Audrey Tan, The Straits Times, 14 Jan 2016
Shoppers who buy goods overseas will now find it easier to declare and pay the duty and Goods and Services Tax (GST) for their purchases before arriving in Singapore.
A free Singapore Customs mobile app, called Customs@SG - which was launched yesterday - allows travellers to make an advance declaration and payment before arriving here.
An e-receipt will be provided as proof of tax payment.
Those stopped for checks at the channel need only present their e-receipt to the inspecting officer.
Free app allows travellers to declare goods purchased overseas, pay taxes in advance
By Audrey Tan, The Straits Times, 14 Jan 2016
A free Singapore Customs mobile app, called Customs@SG - which was launched yesterday - allows travellers to make an advance declaration and payment before arriving here.
An e-receipt will be provided as proof of tax payment.
Those stopped for checks at the channel need only present their e-receipt to the inspecting officer.
Travellers have to pay GST only on the value of the goods that exceeds the GST relief. GST for goods valued below $150 is not applicable for travellers who are out of Singapore for less than 48 hours. For those who are out of the country for more than 48 hours, GST is exempted for goods valued up to $600.
Without the app, travellers with goods purchased overseas that exceed their duty-free allowance or GST relief must declare and pay the fees at the Customs Tax Payment Office or at a Self-Service Tax Payment Kiosk.
Without the app, travellers with goods purchased overseas that exceed their duty-free allowance or GST relief must declare and pay the fees at the Customs Tax Payment Office or at a Self-Service Tax Payment Kiosk.
The Customs@SG app is available on both iOS and Android devices and can be downloaded from the Apple Store or Google Play.
A Web application, accessible via the Singapore Customs website at www.customs.gov.sg, is also available for those who prefer to make the declaration and payment online through their computers.
Users must key in details, such as whether it is a personal or commercial declaration, as well as the date and place of arrival - such as Changi Airport, Woodlands Checkpoint or a cruise centre.
Users must key in details, such as whether it is a personal or commercial declaration, as well as the date and place of arrival - such as Changi Airport, Woodlands Checkpoint or a cruise centre.
They can then make an advance declaration and pay the duty and/or GST for their goods before arriving in Singapore.
Once the payment has been made, the traveller will receive an e-receipt on his mobile phone.
Upon arriving in Singapore, the traveller can exit the checkpoint through the Customs Green Channel without having to stop to declare and pay the duty/GST for the goods at the Customs Tax Payment Office. If stopped for checks, the traveller can show the e-receipt as proof of tax payment to the inspecting officer.
Members of the public can also use the app to provide tip-offs on suspected illegal cigarette peddling activities.
Feedback or queries to the Singapore Customs can be sent via the app.
Ms Clarissa Poon, 26, who works in the aviation industry, said: "It is more convenient and will save time if I can declare and pay ahead."
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New Singapore Customs app allows travellers to pay duty, Goods and Services Tax for their overseas purchases before they arrive in Singapore
Is it true that I have to pay GST on items purchased overseas?
New Singapore Customs app allows travellers to pay duty, Goods and Services Tax for their overseas purchases before they arrive in Singapore
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