Name: Verz Design
Address: 56 Kallang Pudding Road, #07-05/06 HH@Kallang Singapore 349328, 349328
Telephone: 65 6841 1680
Price range: $$$
Rating: 4.7

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.

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!

Enjoy up to 80% eCommerce website grant with our Productivity Solutions Grant (PSG). Click here to get the most popular eCommerce platform for your website today.

Call us at +65 6841 1680 or drop an email to enquiry@verzdesign.com for a free consultation today!