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Taxes and import charges

GST is a broad-based consumption tax levied on the import of goods, as well as nearly all supplies of goods and services in Singapore. In other countries, GST is known as Value-Added Tax or VAT.

 

New Goods and Services Tax (GST) rules in Singapore
As of 1 January 2023, low-value goods (i.e., goods with an item value up to and including S$400) and B2C non-digital services that are imported into Singapore are subject to GST.

Sellers' tax responsibilities

When you sell on eBay, you're responsible for complying with all applicable tax laws. If you're selling to buyers outside Singapore, you should inform them about the potential import charges they'll need to pay when they receive their item.

You are responsible for paying all fees and taxes associated with using eBay as an eBay seller. For more information on eBay's tax policy and your obligations, see our Tax policy and User Agreement.

Your tax-related responsibilities may include:

  • Paying consumption taxes (GST/VAT/sales tax) on eBay sales
  • Paying income tax on eBay sales
  • Informing overseas buyers about import charges

Effective 1 January 2023, the Ministry of Finance will implement significant changes to how GST is collected on low-value goods (i.e., goods with an item value up to and including S$400) and B2C non-digital services that are imported to Singapore.

eBay is complying with local laws and as of 1 January 2023 will begin collecting and remitting GST to the responsible tax authorities.

eBay will add GST to transactions on eBay involving Singapore-based buyers, if the transactions involve:

  • goods imported into Singapore with an item value up to and including S$400
  • B2C non-digital services imported into Singapore

If an order fits either of these criteria, neither sellers nor carriers should collect GST from buyers in Singapore. Instead, eBay will collect GST from the buyer based on their delivery address (for physical goods) and registration address (for B2C non-digital services). The GST collected will be remitted to the responsible tax authorities by eBay.

Sellers should avoid combining low-value goods and non-low-value goods in a single shipment.

For more information on these new requirements, refer to the Inland Revenue Authority of Singapore - opens in new window or tab (IRAS) website.

eBay won't collect GST in the following circumstances:

  • When the item location is Singapore and delivery location is Singapore. For B2C non-digital services, we will use the seller’s registration address to determine item location, and the buyer’s registration address to determine location of use
  • Imported goods valued above S$400. In practice, the recipient pays import GST to the shipping agent as part of customs clearance
  • When the buyer provides a valid Singapore GST number
  • When the transaction involves imported excise goods such as intoxicating liquor and tobacco products

In circumstances where eBay collects and remits GST, we will apply the GST as part of the listing price or at checkout. The GST will be collected from the buyer and remitted to the responsible tax authorities. There is no tax collection required by sellers.

GST requirement on shipping labels

To avoid double taxing goods and avoid package clearing delays at customs, eBay is required to include its GST number and a code for GST paid for goods on the shipping documents (shipping label, commercial documents, customs declaration or equivalent).

When sellers don't use eBay-issued shipping labels the following should be written on shipping documents exactly as follows:

  • When delivery is made by post:
    • eBay’s GST: ***********
    • Code: GST paid
  • When delivery is made by Air Express or Air Couriers:
    • eBay’s GST: ***********

If these instructions are not followed, some logistics providers may refuse parcels to Singapore if the GST is not properly documented. In order to avoid delays and double taxation at the time of delivery we recommend sellers use eBay issued labels.

Importing items to Singapore

In order for eBay to determine whether GST will be levied, and to facilitate customs clearances, sellers need to accurately represent the location of the items in their listings.

For information on requirements for sellers importing to Singapore, please see:

Items purchased before 31 December 2022

If a buyer purchased an item shipping from outside Singapore before 31 December 2022, and the order has not been delivered by 31 January 2023, then the order may be subject to GST. Buyers may be required to pay GST at time of delivery. Sellers should ensure timely delivery to avoid buyers paying GST on items purchased and paid for before 1 January 2023.

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