Goods and Services Tax

All goods imported into Singapore are subject to Goods and Services Tax (GST) at the prevailing rate. It is calculated based on:

• The customs value of the goods, plus all duties, or

• The last selling price (LSP), plus all duties, if the goods were sold more than once before import and the last buyer is the party declaring the payment permit.

Examples of How GST Is Calculated

1. Non-dutiable goods
   
   GST payable = prevailing GST rate × (customs value or LSP)
   
   Example: Vitamins
   

   • Company A buys 100 boxes of vitamins for S$900 (FOB incoterms)

   • Overseas freight, handling and insurance: S$100

   • Company A sells the vitamins to Company B before they arrive in Singapore for S$1,500

2. Dutiable goods
   
   GST payable = prevailing GST rate × (customs value or LSP + duties payable)
   
   Example: Motor car

   • Company B purchased the vehicle at: S$100,000 (FOB incoterms)

   • Overseas freight, handling and insurance: S$1,000

   • Customs value: S$101,000

   • Excise duty rate for motor cars: 20% of customs value