All goods imported into Singapore are subject to Goods and Services Tax (GST) at the prevailing rate. It is calculated based on:
- Customs value of the goods, plus all duties, or
- Value of the last selling price plus all duties, if there has been more than one sale (when the last buyer is the party declaring the payment permit)
Examples on the calculation of GST:
1. Non-Dutiable Goods
GST payable = prevailing GST rate x Customs value or Last Selling Price (LSP)
Company A bought 100 boxes of vitamins at S$900 on Free on Board (FOB) incoterms. The overseas freight, handling and insurance charges to ship the vitamins to Singapore cost S$100. Company A sold the vitamins to Company B before the vitamins reached Singapore for S$1,500. What is the GST payable by Company B?
GST payable by Company B = prevailing GST rate x S$1,500
2. Dutiable Goods
GST payable = prevailing GST rate x (Customs value or Last Selling Price (LSP) + duties payable)
Company A imported a motor car that was bought at S$100,000 on Free on Board (FOB) incoterms. The overseas freight, handling and insurance charges to ship the car to Singapore cost S$1,000. Assuming the excise duty for motor cars is 20% of the customs value:
Customs value of car = S$101,000
Duties payable = S$101,000 x 20%=S$20,200
Thus, GST payable = prevailing GST rate x (S$101,000 + S$20,200)
