Your GST FAQs for eCommerce Businesses Answered!
Article by Fion Lee
Graphics Design by Johanz Mark Isip
The new year ushers in great sales for E-commerce businesses. The industry is truly unstoppable with sales expecting to cross $4 trillion this year! As such, we wrote this article answering your GST FAQs about eCommerce businesses.
What do you need to know about GST for your products and services as a retailer? And how can you protect your business?
Here are your FAQs about GST for eCommerce businesses answered
IRAS states that GST should be charged for these transactions below:
- Physical goods supplied over the internet
- Services and digital services supplied over the internet
- Common eCommerce items such as software and virtual items in online games
- Web hosting services
Generally, the same rules apply for both online and offline transactions. If you sell goods and services online and deliver locally, you should standard-rate your supply and charge GST.
GST rules do not apply to sellers who export their goods out of Singapore. However, sellers need to have custody of their goods. They also need to have control over the export arrangement. Then, they can zero-rate their supplies.
For a complete list of different export scenarios, click here.
IRAS defines digital services as “services supplied over the internet or an electronic network”.
To illustrate, here are some examples:
- Downloadable mobile applications
- E-books, news, and magazines
- Online streaming (TV shows, movies and music)
- Online gaming
- Software programs
- Website filters and firewalls
- Website hosting
- File-sharing and cloud storage services
Similar to physical goods, services over the internet are GST chargeable. However, you may zero-rate your supply if they qualify as international services.
Questions about GST tracking
Your business must register for GST if your turnover exceeds S$1 million at the end of the year. In fact, IRAS provides a handy calculator to access your eligibility here.
You can easily track the tax amount earned with Magento 2’s interface. Simply look under the ‘Reports’ section of your website. From there, you can toggle between dates to view the tax amount earned within given time periods.
An example of Magento 2’s tax report
Of course! However, we need to know the tax rate of the country your business sells to. After which, our developers can configure GST in two ways. Firstly, they can include the tax amount together with product pricing. Secondly, they can break down the tax amount in the ‘cart’ page.
An example of tax pricing on the checkout page – tax exclusive
An example of tax pricing on the checkout page – tax inclusive
Speak to our developers to see what we can do for you!
Call us at 6841 1680 or drop an email to [email protected] for a free consultation today!