Guide to Singapore Overseas Vendor Registration Regime (OVRR)

Singapore's Overseas Vendor Registration Regime (OVRR) is a crucial framework aimed at ensuring fair taxation of digital services and low-value goods imported by consumers. For overseas vendors, electronic marketplace operators, and redeliverers, understanding this regime is essential to stay compliant with Singapore's Goods and Services Tax (GST) laws. This guide provides a comprehensive overview of the OVRR, its requirements, and its implications for businesses.

What is the Overseas Vendor Registration Regime?

Introduced on January 1, 2020, the Overseas Vendor Registration Regime requires overseas businesses to register, charge, and remit GST on:

• Digital Services: Services such as streaming, software, e-books, and apps supplied to non-GST registered consumers in Singapore.
• Low-Value Goods (as of January 1, 2023): Physical goods valued at S$400 or less, imported via air or post, and sold to consumers in Singapore.

Who Needs to Register Under the OVRR?

1. Overseas Vendors

Businesses supplying digital services or low-value goods to Singapore consumers must register if:

• Annual global turnover exceeds S$1 million.
• Annual supplies of digital services or low-value goods to Singapore consumers exceed S$100,000.

2. Electronic Marketplace Operators

Operators facilitating the sale of digital services or low-value goods must register and account for GST on behalf of their overseas suppliers.

3. Redeliverers

Entities arranging the delivery of low-value goods from overseas to Singapore on behalf of consumers must comply with GST obligations.

How to Register for GST Under OVRR

1. Determine Your Eligibility: Assess your global turnover and taxable supplies to Singapore consumers.
2. Apply for GST Registration: Register through IRAS's myTax Portal and provide required information, including business details and estimated turnover.
3. Charge and Collect GST: Apply GST at the prevailing rate (9% as of January 1, 2024) on taxable supplies to Singapore consumers.
4. File GST Returns: Submit simplified GST returns quarterly via the myTax Portal.

What Are Digital Services Under the OVRR?

• Streaming services (e.g., music and video platforms).
• E-books and online courses.
• Software and cloud-based services.
• Online gaming and apps.

What Are Low-Value Goods Under the OVRR?

• Physical goods imported via air or post.
• Goods valued at S$400 or less.
• Excludes goods subject to other duties (e.g., tobacco or alcohol).

Compliance Requirements for OVRR

1. Charging GST: GST must be included in the price displayed to Singapore consumers.
2. Maintaining Records: Keep accurate records of taxable supplies, GST collected and remitted, and invoices issued.
3. Filing and Payment: File simplified GST returns quarterly and remit GST collected to IRAS by the due date.
4. Responding to Audits: Be prepared for IRAS audits by maintaining clear documentation of transactions.

Penalties for Non-Compliance

• Fines and Penalties: Penalties of up to 200% of the GST due.
• Late Payment Charges: Additional fees for late submission or payment.
• Prosecution: Severe cases of non-compliance may lead to legal action.

Benefits of Complying with OVRR

• Avoid Penalties: Ensure compliance to avoid fines and reputational damage.
• Maintain Market Access: Compliance allows businesses to continue operating in Singapore's lucrative market.
• Build Consumer Trust: Transparent GST practices enhance credibility with customers.

How Apexia Corporate Advisory Can Help

Navigating the Overseas Vendor Registration Regime can be challenging for overseas businesses. At Apexia Corporate Advisory, we provide:

• GST Registration Assistance: Guide your business through the registration process with IRAS.
• Compliance Management: Ensure accurate GST collection, filing, and payment.
• Advisory Services: Provide tailored advice on GST obligations under the OVRR.
• Audit Support: Assist in preparing documentation and responding to IRAS audits.

Contact us today to learn more about our services.