Tax Alert - Reverse Charge Changes Singapore

August 28, 2019

In Budget 2018, it was announced that Singapore will be implementing Reverse Charge ("RC") for business to business (B2B) imported services with effect from 1 January 2020.

Under the RC regime, if a GST-registered importer of services belonging in Singapore procures in-scope services (e.g. professional and legal services which would be subject to 7% GST if these services were supplied by a Singapore GST-registered supplier) from an overseas supplier for its business purposes, the GST-registered importer would be required to account for 7% GST on the value of its in-scope imported services as if it were the supplier.  At the same time, it would be entitled to claim the GST as his input tax credit subject to the normal input tax recovery rules.  In short, RC is a mechanism where the GST-registered service recipient is liable to pay output GST in respect of its imported services instead of the overseas supplier.

Click here to read the full Tax Alert from KPMG.