1.  Is there GST (or a similar tax) in Singapore? 

Yes, Singapore has a GST regime which is a broad-based consumption tax levied on the import of goods and supply of goods and services in Singapore. 

The prevailing GST standard rate in Singapore is 7%. The Singapore Government has announced that the GST rate will be increasing to 8% with effect from 1 Jan 2023, and to 9% from 1 Jan 2024. Zero-rating (0%) may apply subject to certain conditions being met.

2. I am not a Singapore entity, what taxes will I be subject to if I sell into Singapore? What fees are subject to GST?

Jade E-Services Singapore Pte. Ltd. (“ZALORA Singapore”), as a Singapore GST-registered company under the Goods and Services Tax Act 1993, is required to charge and collect GST on the supply of services to you. In general, all fees charged by ZALORA Singapore are subject to GST. The rate of 8% or 0% will apply depending on the GST registration status or belonging status of the Seller.  ZALORA Singapore will issue to Sellers a Tax Invoice. All GST collected by ZALORA Singapore will be remitted to the Inland Revenue Authority of Singapore (“IRAS”). 

You will be subject to 8% GST on all marketplace commission and related fees. 

In addition, ZALORA will be required to collect 8% GST on all imported Low Value Good (“LVG”) (≤S$400 exclusive of GST and ≤S$432 inclusive of GST) purchases imported into Singapore via air/post and remit it to the Inland Revenue Authority of Singapore. NB: all goods transported via truck and sea into Singapore are already subject to GST. The changes are summarised in the table below. 

These will be charged to Seller via Import Fees, as applicable.

3. Can you provide an example of how the fees are calculated?

If the agreed commission rate is 15%, and the price of the product sold is S$100, commission fee charged to the seller will be 15% x S$100 x 108% = S$16.20.

4.  Will GST be refunded if there is an overcharge or a purchase is cancelled/refunded?

If a credit note is issued for the fees charged, and GST was charged on those fees previously, then GST will be refunded accordingly. However, if the fee is not refundable e.g., payment gateway fee, no credit note will be issued for the fee even in the event of a cancellation/refund situation and correspondingly, no GST will be refunded.