7% GST for Netflix and Spotify coming in 2020

[ChaosMyth]

A Goods and Services Tax (Amendment) Bill was passed in Parliament on Nov.19.

 

With this being passed, Singaporeans can expect to pay GST for overseas services in 2020, including that of digital services such as Netflix and Spotify.

 

This means that business-to-consumer services will have to register via an overseas vendor registration regime imposed on them.

 

Criteria for businesses to be taxed

Other companies providing video and music streaming services, mobile applications and software may also be affected.

 

According to the second reading speech on the Goods and Services Tax (Amendment) Bill by Second Minister for Finance Lawrence Wong, such companies will have to register if they meet the two-tier criteria of:

 

Having a global annual turnover of S$1 million or more

Making sales of digital services of at least S$100,000 to Singapore consumers.

The tax is expected to bring in an additional S$90 million of tax revenue every year.

 

This comes as part of new rules to protect local retailers, by ensuring “both imported and local services are treated on a level playing field and accorded the same GST treatment.”

 

Reverse Charge mechanism

Between businesses, a “Reverse Charge mechanism” would be implemented instead.

 

Instead of having the business or company based overseas accounting for the GST, the GST for goods and services would be accounted for by the local importing company.

 

This would not affect a large number of businesses, however, as businesses which can claim a full refund of the GST they incur on their purchases, including imported services would not have this mechanism applied to them.

 

It is slated to “affect mainly financial institutions and residential property developers” – those who were unable to have a full GST refund in the first place.

 

How much more would I have to pay for my Netflix?

As per the Goods and Services Tax Act, the rate of GST would be 7%.

 

It was previously announced during Budget that GST would be raised to 9% some time 2021 and 2025.

 

Edited November 20, 2018 by ChaosMyth

[Kusje]

Actually if Netflix starts operating and charging from overseas, how will SG govt collect?

[inlinesix]

Actually if Netflix starts operating and charging from overseas, how will SG govt collect?

That’s the ez part.

 

If Netflix KL don’t want pay, how IRAS enforce it?

 

Ask IMDA block it?

[Kusje]

That’s the ez part.

 

If Netflix KL don’t want pay, how IRAS enforce it?

 

Ask IMDA block it?

 

Isn't my qn the same as yours? 

[Beregond]

quite straight forward ma,

 

who ever bring in the service pay the GST loh

 

'Instead of having the business or company based overseas accounting for the GST, the GST for goods and services would be accounted for by the local importing company.'

[Kb27]

Simple, if they don't pay gst, they will be blocked.

Just like now High Court tells ISP to block certain websites

[Kusje]

quite straight forward ma,

 

who ever bring in the service pay the GST loh

 

'Instead of having the business or company based overseas accounting for the GST, the GST for goods and services would be accounted for by the local importing company.'

 

If netflix server is based overseas, company is based overseas (say bahamas or BVI) and I sign up with them then who exactly is importing the service in?

[Beregond]

If netflix server is based overseas, company is based overseas (say bahamas or BVI) and I sign up with them then who exactly is importing the service in?

maybe they will ask company to bid for the rights.?

if not maybe will be block etc etc.??

i dun think its that hard to do it esp when got money to collect ..

 

just like setting up AD for netfix instead of cars.

and collect gst from the AD loh??

[Vid]

Use VPN and subscribe to the US service. No GST

[inlinesix]

maybe they will ask company to bid for the rights.?

if not maybe will be block etc etc.??

i dun think its that hard to do it esp when got money to collect ..

 

just like setting up AD for netfix instead of cars.

and collect gst from the AD loh??

Blocking doesn’t work nowadays. VPN.

 

Despite being blocked by Great Firewall, ppl still access to FB.

[inlinesix]

Isn't my qn the same as yours?

The answer to your question is Netflix registered for GST. Go and collect from Singapore originated users.

[Beregond]

Blocking doesn’t work nowadays. VPN.

 

Despite being blocked by Great Firewall, ppl still access to FB.

of course if go by underhand/backdoor method dun compare la.

 

dun even need vpn or subscribe oversea.

 

now got website which i streaming free can watch already .

( 2-3 days late maybe, popular show 1 day late nia)

 

wat i saying is the legal ways of watching is SG.  

[DACH]

Is this only for downloading content or will it be extended to social media sites?

[Jusnel]

Even Airbnb charging 7% GST for booking done from Singapore 

[Mustank]

https://www.channelnewsasia.com/news/singapore/gst-tax-ageing-population-indranee-rajah-13280840

 

looks like saying if no increase gst, they going to increase income tax

if no money please don’t spend money on million dollar dustbin founder park etc

[Kopites]

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