A historical training presentation, not a new tax rate
The 52-slide webinar explains the extension of Overseas Vendor Registration (OVR) from 1 January 2023 and the air courier’s import-clearance role. Its worked tax example uses the 8% rate introduced in 2023; that historical calculation must not be applied to later transactions with a different rate. B2C means supplies to non-GST-registered customers, including individuals and businesses. From 2023, the extension covered imported low-value goods and non-digital remote services alongside digital services already covered from 2020.
Vendor registration and the courier’s responsibility
The presentation’s registration thresholds are worldwide turnover exceeding S$1 million and B2C low-value goods/remote services supplied to Singapore exceeding S$100,000 over a twelve-month period. Registered vendors charge GST at the point of sale to non-registered customers and GST-registered businesses buying for non-business use. The S$400 import-relief threshold remains relevant to air/post consignments. Couriers must determine whether the vendor has already charged GST on the particular goods, so import GST is not collected a second time where a qualifying non-payment declaration applies.
Four tests for low-value goods
At the point of sale, the goods must be non-dutiable or have the relevant duty waived under section 11 of the Customs Act; not exempt from GST; located outside Singapore for delivery by air or post; and within the S$400 entry-value threshold. The sales value used for classification excludes separately charged transportation/insurance to the Singapore delivery location, GST and Customs duties. By contrast, the taxable value of the supply includes related transportation and insurance paid by the customer.
The S$420 dress example and multiple-item shipments
A dress priced at S$420 includes separately identified S$25 transport/insurance. Its classification value is S$395, so it is LVG; taxable supply value remains S$420. At the slide’s historical 8%, GST is S$33.60 and the customer pays S$453.60. Ordinarily, test each item even when shipped together. The presentation shows S$150, S$150 and S$450 items in one S$750 consignment: the seller charges GST on the first two and Customs taxes the non-LVG item. Vendors may elect the specified consignment-CIF or individual-item-CIF alternatives; the courier should not invent such an election for a vendor.
Why double taxation occurs and what evidence prevents it
A single parcel may contain several LVG with total CIF above S$400; different exchange rates at sale and import can also cause double taxation. Two pieces of information must pass through the logistics chain: the vendor’s GST registration number and the GST amount or GST-paid indicator for each item. An overall statement that GST was paid, without identifying the items, is insufficient for a multi-item parcel. Look in invoices/packing lists, shipping manifests, vendor emails or EDI system printouts. Make them available to ICA on request and retain them for five years.
Choose payment or non-payment item by item
For a qualifying parcel above S$400 with complete GST evidence on every item, use the non-payment procedure. With evidence only for selected items, use non-payment for those items and payment for the others. The S$80/S$450 mixed example requires separate treatment if only the S$80 item has been taxed by the vendor. If the GST number, paid indicator or item allocation cannot be established, obtain clarification and, if unresolved, declare the payment permit required by the slides. Neither a GST number alone nor a paid indicator alone is enough.
Multiple suppliers and allocating freight/insurance
A consignment containing items from different OVR suppliers needs each supplier’s GST number recorded on the relevant declaration line. Complete evidence supports separate non-payment lines for each LVG; an item from a non-registered supplier is not covered just because another supplier is registered. For mixed LVG/non-LVG consignments, use item CIF when available. If only total freight/insurance is known, allocate it to the non-LVG items using a suitable proxy and compute their import GST on the resulting CIF. The slides advise vendors to avoid mixing LVG and non-LVG in one shipment/invoice to reduce errors.
The S$600 best-practice threshold is a red flag
The recommended S$600 per-item CIF threshold is a checking tool, not a replacement for the S$400 legal LVG definition. Apply it only after both GST-number and item-paid information are present. For item CIF at or below S$600, a non-payment permit is generally appropriate unless other evidence shows non-LVG. Above S$600, generally use payment unless evidence establishes genuine LVG: for example, a qualifying sales invoice, sufficiently high freight/insurance, or confirmation from the vendor/importer. The S$650 handbag/S$350 jacket illustration flags the handbag for further examination despite its paid indicator.
Where only total CIF is available
Multiply S$600 by the number of items to obtain the checking threshold. The two-item S$900 example is below S$1,200, allowing the stated non-payment approach if the required GST evidence is complete and no item is known to be non-LVG. If the total exceeds the computed threshold, the slides call for payment unless evidence establishes the relevant LVG treatment. If only sales values are available, impute item CIF by including insurance/freight. A second S$900 example lacks a paid indicator and therefore fails the evidence test: the best-practice threshold cannot cure missing information. Some flowcharts use less-than signs while the explanatory text states the per-item rule at or below S$600; do not infer a new S$400 import boundary from those chart labels.
Air/post and exceptional land/sea supplies
For non-controlled, non-dutiable air consignments with CIF at or below S$400, the slides retain the existing advance-manifest/summary-list clearance and no import permit requirement. Above S$400, taxed OVR LVG uses the qualifying non-payment permit with complete evidence. Controlled goods still require the appropriate permit even below the threshold. The presentation also notes that some vendors may obtain approval to charge GST on qualifying goods delivered by sea/land; those approved arrangements can support non-payment rather than a second import charge. Non-controlled postal imports have separate permit applicability.
TradeNet declarations and controlled goods
For qualifying air LVG consignments above S$400, the presentation specifies the following INP(APS) fields, with CA/SC codes declared at line-item level. For taxed OVR non-dutiable controlled goods, INP(APS) is needed both below and above S$400. For non-OVR non-dutiable goods, above-threshold imports use an In-Payment GST/duty-exemption permit; controlled goods below the relief threshold use the stated In-Non-Payment GST-relief/duty-exemption permit. The non-OVR comparison slide carries a misleading heading saying GST paid at point of sale; its substantive table is the ordinary import treatment, not evidence of vendor GST collection.
| Permit field | Required value |
|---|---|
| Message Type | In-Non-Payment (INP) |
| Declaration Type | Approved Premises/Schemes (APS) |
| Place of Receipt Code | OVR |
| CA/SC Product Code | OVR |
| CA/SC Code 1 | The relevant OVR vendor GST registration number |
All eighteen advance-manifest fields
Slide 47 is an image table rather than extractable text. The following complete field list was checked against the rendered slide. Keep the GST evidence linked to the goods and identifiers; a consignment total alone does not identify which items were taxed.
| No. | Manifest field |
|---|---|
| 1 | Transporter name |
| 2 | Transporter UEN |
| 3 | Import clearance date |
| 4 | Tracking/HAWB/reference number |
| 5 | Outer packing number |
| 6 | Supplier name |
| 7 | Supplier address |
| 8 | Supplier GSTN |
| 9 | Consignee name |
| 10 | Consignee address |
| 11 | Consignee postcode |
| 12 | Consignee telephone |
| 13 | Consignee email |
| 14 | Description |
| 15 | Item CIF value (SGD) |
| 16 | Total CIF under the same tracking/HAWB/reference (SGD) |
| 17 | Country of origin |
| 18 | Port of loading |
What to do after double taxation
The default route is to ask the OVR vendor to refund the point-of-sale GST. The vendor must refund where the customer proves import GST was paid, for example with the courier’s tax invoice/permit notification, import permit or transporter GST receipt. Preserve the vendor invoice/email/order showing original GST, delivery/consignment note and payment evidence such as a card statement. After refunding, the vendor accounts for the refund in its next GST return. The deck also depicts courier assistance with a Customs refund route but provides no detailed eligibility or application procedure; do not assume both refunds may be retained.
Operational preparation and customer scam prevention
Agree with overseas partners whether GST information comes by invoice, manifest or EDI; update systems to capture it and train staff on item checks and non-payment declarations. Publish the company’s authentic payment channels clearly. Warn customers about fake import-GST requests seeking card/NRIC information, false refund links by email/SMS and purported couriers diverting GST collections. The slides suggest explicitly stating that personal/banking details are not requested over SMS, WhatsApp or Telegram. Verify any payment request through the published official channel.
Further resources and enquiry channels
The final resource slide directs readers to IRAS material on imported services, low-value goods, approval for sea/land charging and the two OVR e-Tax Guides. It lists GST@iras.gov.sg for IRAS enquiries and customs_documentation@customs.gov.sg for permit/Customs matters. Those are the presentation’s contacts, not a promise that a historical operational address remains the correct channel indefinitely. The presentation explains its tax guidance is accurate at presentation time and cannot cover every issue; check subsequent official procedures before live clearance.
Official source
This article independently explains the substantive contents of the official PDF, including the relevant conditions, procedures and annexes. The linked document remains the authoritative source for its original wording, and later changes should be checked separately.
Read the official PDF ↗