From GST relief to what’s taxable or not, and even how to pay GST on your purchases, we’re giving you the 411 on bringing home luxury items from your vaycay!
Shopaholics, listen up! Do you find yourself wanting to take that luxury shopping trip to Europe and splurge your little hearts out on shiny branded leather goodies? If the only thing stopping you is uncertainty when it comes to additional costs or taxes to pay when you return back to home-sweet-home, worry not! We’re here with a complete guide on things to take note of when bringing home your precious luxuries.
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Do I Have To Pay GST?
Image Credits: Patriot Software
First off, let’s break down what GST is shall we? It’s the tax that’s levied on the value of imported goods. This includes the cost, insurance and freight (CIF), as well as other chargeable costs — plus the duty payable, if applicable. This is regardless of whether these items were brought in through commercial shipments or hand-carried by travelling residents.
So do you have to pay GST? Yes. 😟 With Singapore’s Goods and Services Tax rising to 8% in 2023 and expectations of it increasing up to 9% in 2024, you might be disheartened to know that you’ll have to pay GST on the total value of items brought back from your trips. But I guess some things can’t be helped. 🤷♀️
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Is There A GST Relief?
Image Credits: Changi Airport
Thankfully, there’s a GST import relief on goods that are purchased overseas and brought into Singapore (excluding liquor and tobacco)! This relief is available to all travellers except those on a work pass, student pass, dependent pass, or long-term pass issued by the government and flight crew members.
For those wondering how much GST relief they’d be getting, here’s a quick and handy table:
| 🕔 Time Away From Singapore | 💰 Value Of Goods Granted GST Relief (SGD) |
| > 48 hours | $500 |
| < 48 hours | $100 |
With this, travellers will have to take note that any purchases with values exceeding the GST relief will have to be taxed on the excess. For instance, if a traveller purchases an $800 handbag and was overseas for more than 48 hours, they’d have to pay GST on the remaining $300.
Likewise, that same traveller would have to pay GST on the remaining $700 if they spent less than 48 hours out of Singapore. Going by this logic, it makes more sense to purchase big-ticket items if you’re travelling for a longer period of time!
This also applies to online purchases as all imported goods via post or air are taxable. Take note that for these purchases, GST is payable on the total value of the shipment and there will be no relief for goods imported by other transport modes such as sea freight and land!
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How Will I Know What Is Taxable?
Image Credits: The Smart Local
Any item that’s purchased overseas will be considered taxable and travellers will have to make a declaration when they arrive in Singapore. As long as it comes with a receipt and has a value exceeding the amount of GST relief that you’re eligible for, GST must be paid. The only exemption would be items that have a value lower than the relief. But even so, make sure you perform your due diligence before exempting these items from your declarations!
For used personal items such as used clothing, bags, and toiletries, travellers are not required to declare and pay GST. However, this is up to the officers’ discretion and in certain scenarios, travellers might have to pay the tax on used personal items too.
If you receive a taxable item as a gift, you might want to hold your horses and check with the gifter if the GST has been paid for it. Although you might not have the receipt, officers at the airport might ask you to pay GST for the item if it exceeds the relief amount. This means they’ll have to base the item’s value on similar or identical goods. 👀
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What If I Had Already Paid The Sales Tax Overseas?
Image Credits: CNA
Regardless of whether foreign sales taxes were paid, GST must still be paid on all goods arriving in Singapore. Heads up: Even if you purchased your items at a Tax-Free shop overseas, you’ll still be required to pay GST upon entering Singapore! ⚠️
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How Do I Pay GST On My Purchases?
Image Credits: Asia Law Network
Here’s what you need to do when paying GST on your purchases:
1️⃣ After Immigration Clearance, head towards the arrival hall where you’ll see Red and Green Channel indicators above the examination desks.
2️⃣ Declare all of your purchases at the Red Channel
3️⃣ Before passing through immigration, inform the inspector at the Red Channel if you’re carrying any dutiable, taxable, regulated, or prohibited products. You’ll be required to present a valid Customs import permit for clearance if you are carrying any of the below:
| Items that require a customs import permit |
| > 0.4kg of cigarettes or other tobacco products |
| > 10 litres of liquor products |
| > 10 litres of motor fuel in a spare container of a motor vehicle |
| > 0.5kg of investment precious metals for personal use |
| Goods for trade, commercial or business purposes, in which the GST payable exceeds S$300 |
| Goods marked as trade samples with a value exceeding S$400 (excluding liquor and tobacco products) |
4️⃣ Afterwards, GST can be paid online using credit cards (Visa or Master on the Customs @ SG web application and American Express), mobile wallets, NETS, and Cashcard at the Singapore Customs Tax Payment Office
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What If I Don’t Declare My Items?
Image Credits: Times Of India
Unfortunately, travellers that do not declare their items will be penalised under the Customs Act and the Regulation of Imports and Exports Act (REIA).
Not declaring items or making an incorrect or incomplete declaration on the value of goods imported are considered offences. Those found guilty will be fined up to S$10,000 or the equivalent of the amount of GST payable — whichever is the greater amount. Serious offences will also carry a jail sentence of up to 12 months or both.
While you might think it’s fine to risk it every now and then, think again! In 2018, a woman was arrested at Changi Airport after failing to declare her branded purchases worth over $11,000. Since these items were imported for commercial purposes, there’s no GST relief on these goods. Annnndd her failure to declare these items landed her in prison. Definitely something worth avoiding. 🫣
Bringing Home Luxury Items From Your Vacation?: Find out more on failure to declare items at customs here
Always Remember To Declare Away!
After a fulfilling getaway from home, don’t forget to declare your items and pay off those GST taxes! And whether you’re splurging on luxury goods or delicious foreign snacks, don’t forget to use your YouTrip Card to lock in our ever-reliable wholesale exchange rates!
As Singapore’s favourite multi-currency wallet, we aim to get those pesky fees out of the way and help you save on your travels. If you don’t already have a YouTrip card, sign up now with <YTBLOG5> to get FREE S$5 in your account! Be sure to check out our YouTrip Perks page for exclusive offers and promotions too! For more great tips and articles like this, join our Telegram(@YouTripSG) and subscribe to our free weekly newsletter here or down below!
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