Measures to Level Playing Field for GST-registered Local Suppliers versus Non-GST Registered Overseas Suppliers
Ministry of FinanceSpeakers
Summary
This question concerns measures to level the playing field between GST-registered local suppliers and non-GST registered overseas suppliers in the digital economy. Mr Thomas Chua Kee Seng asked about the steps being taken and the implementation timeline for these adjustments to ensure local businesses are not disadvantaged. Minister for Finance Mr Heng Swee Keat responded that the government is studying GST system adjustments and launched consultation papers in May 2017 regarding proposed reverse charge and overseas vendor registration regimes. Stakeholders from various sectors are being engaged to provide feedback while the government monitors international developments to inform the review. Minister for Finance Mr Heng Swee Keat added that if measures are announced, lead time will be provided for implementation.
Transcript
24 Mr Thomas Chua Kee Seng asked the Minister for Finance in view of the rapid development of the digital economy whereby local businesses and consumers will increasingly buy goods and services from overseas suppliers (a) what steps are being taken to level the playing field between GST-registered local suppliers and non-GST registered overseas suppliers; and (b) when will the implementation of measures to level the playing field take place.
Mr Heng Swee Keat: As mentioned by the Minister for Finance in his Budget Statement in February this year, we are studying how we could make the necessary adjustments to our Goods and Services Tax (GST) system to ensure that local businesses which are GST-registered are not disadvantaged due to digital transactions and cross-border trade.
In May 2017, the Inland Revenue Authority of Singapore (IRAS) launched its consultation papers on the proposed reverse charge and overseas vendor registration regime to seek feedback and suggestions from the various stakeholders. IRAS is in the process of engaging these businesses and associations on the different ideas for taxing such cross-border goods and services in the digital economy. A wide range of segments are being engaged, including financial institutions, e-commerce companies, electronic marketplace operators, logistics players and consultancy firms. We are also monitoring developments in other countries.
We will take into account the feedback gathered and the issues raised in our review. If any measure is to be announced by the Government, lead time will be provided for implementation.