Singapore is home to many SGD Importers and their goods are a huge source of revenue for the country. They are in a position to help the local economy and boost exports, particularly in the current trade war between the United States and China.
SGD Importers, as you may have guessed by now, are the ones who purchase and sell the goods and services that make up the supply chain for their company. Whether it’s flowers, plants or other items, they provide quality products at competitive prices.
As a result, their business has grown rapidly and is now one of the most well-known and trusted in the Singapore market. In fact, many businesses in Singapore and even around the world choose to use SGD Importers to source their materials.
How to Pay Import Tax in Singapore
All businesses selling goods and services in the country will need to remit taxes to the government. Those taxes include the Goods and Services Tax (GST) and duty. Currently, all goods entering the country are subject to GST at a rate of 7%, but this is expected to rise to 9% by 2025.
However, for some goods that are imported into Singapore for personal use, the 7% GST is not applied to their CIF value. This is because Singapore has a 400 SGD tax de minimis for goods, meaning that they are not subject to import tax if the total value of their goods does not exceed 400 SGD.
If you want to comply with Singapore’s new Low-value Import Tax Scheme, it’s important to know how to value your goods and how to charge the GST on them. You will also need to know how to remit the tax to IRAS on a quarterly basis.
Defining and Assessing Low-Value Item Sales
To determine if a product or order is low-value, you need to determine the value of the item plus shipping costs. If the total value is less than 400 SGD, you must collect the GST at checkout and remit it to IRAS on a quarterly basis.
There are several ways to determine if an item is low-value, but the most common way to do this is to calculate the CIF value of each individual item and subtract the shipping cost.
Another approach to determining if an item is low-value is to compare its price with the average price of similar items sold in Singapore. If the average price is lower than the average price of similar items sold in Singapore, you can be sure that it’s a low-value item.
You can also assess the value of an item based on its condition. If the item is in poor condition, it will be low-value.
Generally, the more damaged the item is, the more expensive it will be to repair or replace. In these cases, Medicare will reimburse you at a much higher percentage of the fee schedule amount than it would for a device that is in good condition.