{"id":25843,"date":"2021-02-17T18:09:49","date_gmt":"2021-02-17T10:09:49","guid":{"rendered":"https:\/\/www.you.co\/sg\/?p=25843"},"modified":"2021-04-08T10:29:54","modified_gmt":"2021-04-08T02:29:54","slug":"budget-2021-gst-imported-online-shopping","status":"publish","type":"post","link":"https:\/\/www.you.co\/sg\/blog\/budget-2021-gst-imported-online-shopping\/","title":{"rendered":"Budget 2021: GST will be charged on all overseas online shopping from Jan 2023."},"content":{"rendered":"\n<h2 class=\"wp-block-heading\"><strong>PSA YouTroopers: Singapore Budget 2021 just announced that all overseas online shopping, imported either by air or post, will be charged with GST.<\/strong><\/h2>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">If you\u2019ve been shopping online and buying your favourite hauls cheaper from <a rel=\"noreferrer noopener\" href=\"https:\/\/www.you.co\/sg\/blog\/amazon-prime-day-singapore-shipping-guide\/\" target=\"_blank\">Amazon<\/a>, Taobao, <a rel=\"noreferrer noopener\" href=\"https:\/\/www.you.co\/sg\/blog\/iherb-vs-watsons-guardian-which-is-cheaper\/\" target=\"_blank\">iHerb<\/a>, <a rel=\"noreferrer noopener\" href=\"https:\/\/www.you.co\/sg\/blog\/sephora-vs-cult-beauty-cheaper-skincare-makeup\/\" target=\"_blank\">Cult Beauty<\/a>, and the <a rel=\"noreferrer noopener\" href=\"https:\/\/www.you.co\/sg\/blog\/ultimate-overseas-online-shopping-compilation-guide\/\" target=\"_blank\">likes from other overseas stores<\/a> \u2013 head\u2019s up! Things are about to change.&nbsp;In Budget 2021 on Tuesday (February 16), Deputy Prime Minister Heng Swee Keat announced that all low-value goods imported by air or post will now be subjected to goods and services tax (GST).&nbsp;<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Ultimate YouTrip Guide To Budget 2021:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Budget 2021: GST will be charged on all overseas online shopping from Jan 2023<\/strong><\/li><li><strong><a href=\"https:\/\/www.you.co\/sg\/blog\/budget-2021-summary-travellers-shoppers\/\" target=\"_blank\" rel=\"noreferrer noopener\">Budget 2021 Summary: What Travellers &amp; Shoppers Need To Know<\/a><\/strong><\/li><\/ul>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Budget 2021: What import taxes are we paying now?<\/strong><\/h2>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Only overseas goods imported by air or post are subjected to GST&nbsp;<\/strong><\/h4>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Currently, shoppers are <a href=\"https:\/\/www.customs.gov.sg\/businesses\/valuation-duties-taxes-fees\/goods-and-services-tax-gst\" target=\"_blank\" rel=\"noreferrer noopener\">subjected to GST only if their total value of goods hits above S$400<\/a>. This arrangement not only allows for a speedier clearance process at customs \u2013 so that our anticipated loots reach us much earlier \u2013 but it has also allowed international shoppers like us to enjoy significant savings (on top of <a href=\"https:\/\/www.you.co\/sg\/blog\/using-credit-card-overseas-transaction-fees-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">avoiding foreign currency fees with YouTrip<\/a>).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Oh and remember that painful price hike of S$1 &#8211; S$3 that we had to ensure for our Netflix subscription? Ouch.&nbsp;<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Imported digital services have been subjected to GST since Jan 1, 2020<\/strong><\/h4>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Consumers, like you and I, have already been paying for GST on our favourite imported digital services, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Netflix<\/li><li>Spotify<\/li><li>Adobe&nbsp;<\/li><li>Microsoft<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This will include all other downloadable digital content, software programmes, cloud services, video and music streaming services, and other subscription-based media. This tax is only applicable to companies with \u201c<a href=\"https:\/\/www.iras.gov.sg\/irashome\/News-and-Events\/Newsroom\/Media-Releases-and-Speeches\/Media-Releases\/2019\/GST-payable-on-overseas-digital-services-from-1-Jan-2020\/\" target=\"_blank\" rel=\"noreferrer noopener\">a yearly global turnover of more than S$1 million that sell more than S$100,000 worth of digital services to customers in Singapore<\/a>\u201d.<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Budget 2021: GST to be applied to all overseas imported goods<\/strong><\/h2>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Based on the recent Budget 2021 presented, here are the major changes that\u2019ll be affecting everyone who shops online from Jan 1, 2023.&nbsp;<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"900\" height=\"900\" src=\"https:\/\/www.you.co\/sg\/wp-content\/uploads\/sites\/2\/2021\/02\/GST-infographic-02-copy.jpg\" alt=\"Budget 2021: GST will be charged on all overseas online shopping from Jan 2023.\" class=\"wp-image-25907\" srcset=\"https:\/\/www.you.co\/sg\/wp-content\/uploads\/sites\/2\/2021\/02\/GST-infographic-02-copy.jpg 900w, https:\/\/www.you.co\/sg\/wp-content\/uploads\/sites\/2\/2021\/02\/GST-infographic-02-copy-300x300.jpg 300w, https:\/\/www.you.co\/sg\/wp-content\/uploads\/sites\/2\/2021\/02\/GST-infographic-02-copy-150x150.jpg 150w, https:\/\/www.you.co\/sg\/wp-content\/uploads\/sites\/2\/2021\/02\/GST-infographic-02-copy-768x768.jpg 768w, https:\/\/www.you.co\/sg\/wp-content\/uploads\/sites\/2\/2021\/02\/GST-infographic-02-copy-600x600.jpg 600w, https:\/\/www.you.co\/sg\/wp-content\/uploads\/sites\/2\/2021\/02\/GST-infographic-02-copy-100x100.jpg 100w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/figure>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>What&#8217;s Coming: GST will be taxed on all low-value goods imported by air or post&nbsp;<\/strong><\/h4>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">From Jan 1, 2023, all low-value goods imported by air or post will be subjected to GST.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Remember the times we would avoid hitting the S$400 mark in our combined shopping cart value so that we can avoid paying taxes to the government? That\u2019s not going to cut it soon.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Regardless of value, the government announced that all imported shopping goods will have to be charged with GST. This will mean that shopping from <a href=\"https:\/\/www.you.co\/sg\/blog\/taobao-shopping-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">Taobao<\/a>, Amazon, iHerb, <a href=\"https:\/\/www.you.co\/sg\/blog\/asos-hack-save-money-gbp-currency\/\" target=\"_blank\" rel=\"noreferrer noopener\">ASOS<\/a>, eBay, and our endless list of favourite overseas merchants, will soon get a little bit more expensive not because of the increase in their prices, but because of the duties and taxes that we\u2019ll have to pay in Singapore.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bringing this closer to home, this change will potentially affect the current low prices that we enjoy with our local marketplaces, such as Carousell, Shopee, and Lazada. Both local resellers and overseas suppliers aplenty on these platforms will be subjected to GST when they import to Singapore. As a result, we can probably expect an increase in product prices as local and overseas suppliers manage the increasing costs.&nbsp;<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>What&#8217;s Coming: GST will be taxed on non-digital B2C services<\/strong><\/h4>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">On top of the current taxed digital services, non-digital Business-to-Consumer (B2C) services will also be charged GST. This includes all internet services and facilities that require human intervention, such as fitness training, telemedicine, counselling, and educational offerings.&nbsp;<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>What\u2019s next for us with this GST announcement?&nbsp;<\/strong><\/h4>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">While no clear implementation method has been shared yet, Deputy Prime Minister Heng Swee Keat announced that the purpose of this is to level the playing field for local businesses to compete effectively.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We know that an increase in GST will happen soon, it\u2019s just officially \u201csooner rather than later\u201d.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Regardless, we\u2019ll be keeping an eye out for how this will affect us as international shoppers. Bookmark this page for future updates.&nbsp;<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Shop GST-free while it lasts with YouTrip<\/strong><\/h2>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/media.giphy.com\/media\/PkAG8cQIWuOHTZSHj5\/source.gif\" alt=\"&quot;Add to cart&quot; Budget 2021: GST will be charged on all overseas online shopping, including low-value goods, from Jan 2023.\" width=\"533\" height=\"300\" \/><\/figure><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Psst, if you\u2019re still not on YouTrip yet, quickly take advantage of competitive exchange rates that comes when you spend with YouTrip on all your overseas online shopping. With zero fees, and <a rel=\"noreferrer noopener\" href=\"https:\/\/www.you.co\/sg\/blog\/what-are-wholesale-exchange-rates-how-to-use\/\" target=\"_blank\">wholesale exchange rates<\/a> offered, now\u2019s the time to enjoy taxless international shopping before 2023 hits us \u2013 hard.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you don\u2019t have a YouTrip card yet, use &lt;<strong><a rel=\"noreferrer noopener\" href=\"https:\/\/youtrip.onelink.me\/HnkC\/49ead0da\" target=\"_blank\">BLOG5<\/a><\/strong>&gt; during your sign-up to enjoy a free S$5 in your account! \ud83d\ude0e<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For more great guides and tips like this,&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/t.me\/youtripsquad\" target=\"_blank\"><strong>join our Telegram Community (@YouTripS<\/strong><\/a><strong><a rel=\"noreferrer noopener\" href=\"https:\/\/t.me\/youtripsquad\" target=\"_blank\">q<\/a><\/strong><strong><a rel=\"noreferrer noopener\" href=\"https:\/\/t.me\/youtripsquad\" target=\"_blank\">u<\/a><\/strong><strong><a rel=\"noreferrer noopener\" href=\"https:\/\/t.me\/youtripsquad\" target=\"_blank\">a<\/a><\/strong><a rel=\"noreferrer noopener\" href=\"https:\/\/t.me\/youtripsquad\" target=\"_blank\"><strong>d<\/strong><\/a><a rel=\"noreferrer noopener\" href=\"https:\/\/t.me\/youtripsquad\" target=\"_blank\"><strong>)<\/strong><\/a>&nbsp;and&nbsp;<strong><a rel=\"noreferrer noopener\" href=\"https:\/\/go.you.co\/blog-newsletter\" target=\"_blank\">subscribe to our free weekly newsletter here<\/a><\/strong>&nbsp;or down below!<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Related Articles<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><a rel=\"noreferrer noopener\" href=\"https:\/\/www.you.co\/sg\/blog\/ultimate-overseas-online-shopping-compilation-guide\/\" target=\"_blank\">The Ultimate Overseas Online Shopping Compilation Guide<\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/www.you.co\/sg\/blog\/when-can-we-travel-again\/\" target=\"_blank\" rel=\"noreferrer noopener\">When Can We Travel Again: 2023 For Travel to Fully Resume<\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/www.you.co\/sg\/blog\/taobao-free-shipping\/\" target=\"_blank\" rel=\"noreferrer noopener\">How to Use Taobao Free Shipping Zone<\/a><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/youtrip.onelink.me\/HnkC\/49ead0da\"><img decoding=\"async\" width=\"728\" height=\"90\" src=\"https:\/\/www.you.co\/sg\/wp-content\/uploads\/sites\/2\/2020\/04\/15_728x90.jpg\" alt=\"\" class=\"wp-image-15551\" srcset=\"https:\/\/www.you.co\/sg\/wp-content\/uploads\/sites\/2\/2020\/04\/15_728x90.jpg 728w, https:\/\/www.you.co\/sg\/wp-content\/uploads\/sites\/2\/2020\/04\/15_728x90-300x37.jpg 300w\" sizes=\"(max-width: 728px) 100vw, 728px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><em><sub>*Top banner Budget 2021 logo from <a href=\"https:\/\/www.mof.gov.sg\/singaporebudget\/about-budget\" target=\"_blank\" rel=\"noreferrer noopener\">MOF<\/a><\/sub><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Overseas online shopping tax is coming<\/p>\n","protected":false},"author":32,"featured_media":25861,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[621],"tags":[39132],"class_list":["post-25843","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-foreign-exchange","tag-trending"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.you.co\/sg\/wp-json\/wp\/v2\/posts\/25843","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.you.co\/sg\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.you.co\/sg\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.you.co\/sg\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/www.you.co\/sg\/wp-json\/wp\/v2\/comments?post=25843"}],"version-history":[{"count":0,"href":"https:\/\/www.you.co\/sg\/wp-json\/wp\/v2\/posts\/25843\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.you.co\/sg\/wp-json\/wp\/v2\/media\/25861"}],"wp:attachment":[{"href":"https:\/\/www.you.co\/sg\/wp-json\/wp\/v2\/media?parent=25843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.you.co\/sg\/wp-json\/wp\/v2\/categories?post=25843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.you.co\/sg\/wp-json\/wp\/v2\/tags?post=25843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}