The reverse-charge mechanism under the goods and services tax (GST) regime will apply for imported services beginning 1 January 2020.
The policy behind the reverse-charge mechanism is to provide similar GST treatment for all services consumed in Singapore by means of:
The reverse-charge rules will apply to entities that are not currently entitled to full input tax claims. These entities will need to register for GST and apply the reverse-charge rules (even if not currently registered for GST).
The reverse-charge rules will not apply to all imported services, but intra-GST group and inter-branch transactions may be subject to the new rules (even if they are regarded as a single legal entity for GST purposes).
There are certain action steps that taxpayers need to consider in advance of the 2020 effective date.
Read an April 2019 report [PDF 687 KB] prepared by the KPMG member firm in Singapore
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