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Here’s What it Means When GST is Implemented in ‘Digital Services’ from 2020

2018-02-20 , 1:42 pm

Budget 2018. The topic for today’s lunch and many tea breaks for the year to come.

At the moment, my colleagues are freaking out about the increase in cigarette prices (Hehe) and I’m sitting here writing this while having a hearty laugh at their conversation.

Anyway, I believe I bring…both good and bad news.

Yeah, 2018 is that kind of a year.

As announced in Budget 2018 Finance Minister Heng Swee Keat, GST will be imposed on digital services from 2020 onwards. With effect from 1 Jan 2020, this would be an attempt to make Singapore’s tax system “fair and resilient”.

Budget 2018: GST on digital services

WATCH: If you download apps and music from overseas firms, you will soon have to pay GST as it’s considered an “imported service”. #SGBudget2018

Posted by Channel NewsAsia on Monday, 19 February 2018

“Today, services such as consultancy and marketing purchased from overseas suppliers are not subject to GST. Local consumers also do not pay GST when they download apps and music from overseas,” the minister said.

“This change will ensure that imported and local services are accorded the same treatment.”

…I don’t know about you, but sounds to me like this is going to encourage some form of…illegal activities.

(Ahoy there matey!)

Anyway, you’ll be glad to know that the above mentioned is the bad news(I guess).

Time for the good news, everyone!

According to the Ministry of Finance, GST will be applicable for business-to-business (B2B) and business-to-consumers (B2C) imported services.

However, this will not affect e-commerce on physical goods below S$400! Which means we can still pretty much shop all we want without worrying about the GST!

What all these mean

Right, back to the serious stuff.

According to a report by Channel NewsAsia, this could very well mean that services like Netflix, Spotify, software, and subscription fees are liable to GST.

In other words, we might be getting taxed for using for using services like Microsoft’s Office 365 productivity suite and anti-virus software.

“Introducing GST on imported services will ensure that, irrespective of whether the service consumed in Singapore is bought from suppliers here or from suppliers abroad, the same GST treatment will apply,” said the Ministry of Finance.

MOF also said that they are discussing ways on how GST can be applied for low-value physical goods.

“We are reviewing international developments before deciding on the measure to take,” they added.

…So, I guess the good news ain’t really good news after all. It’s just taxes waiting to happen eventually.

Well, I guess we should take a look at what netizens have to say…

…Annnnnd I think it’s safe for us to say that nobody’s happy about this. Whatever the case, the repercussions from Budget 2018 is going to be big.

I just hope normal citizens like us won’t be riding a little sampan when the gigantic wave hits…

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This article was first published on goodyfeed.com

Here’s What it Means When GST is Implemented in ‘Digital Services’ from 2020

What all these mean

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