Overseas Vendor Registration Regime

What is it?

The Overseas Vendor Registration (OVR) Regime is administered by the Inland Revenue Authority of Singapore (IRAS) (opens in new tab).

From 1 Jan 2023, GST has been extended to low-value goods (LVG) imported via air or post through the OVR regime. The change will ensure a level playing field for our local businesses to compete. The change also ensures that our GST system remains fair and resilient as the digital economy grows.

Definition of low-value goods

LVG are goods which at the point of sale:

• are not dutiable goods, or are dutiable goods but payment of the Customs duty or excise duty chargeable on the goods is waived under section 11 of the Customs Act;

• are not exempt from GST;

• are located outside Singapore and are to be delivered to Singapore via air or post; and

• have a value not exceeding the GST import relief threshold of S$400.

Charging of GST for overseas suppliers

The OVR vendors will be required to collect GST at the point of sale on supplies of LVG to:

• Non-GST-registered customers; and

• GST-registered businesses purchasing for non-business use.

The OVR vendors will be required to pass down the following information down the logistics chain so that the relevant GST information will be made available for import permit application:

• Whether GST has been paid for each item; and

• GST registration number (GSTN) of the OVR Vendor

Customs permit requirements

Currently, import GST relief is granted on goods imported by air, excluding intoxicating liquors and tobacco, of a total value (on a cost, insurance and freight (CIF) basis) not exceeding S$400.

There is no change to the import procedure and permit requirements for goods imported via air after 1 Jan 2023. As long as the total CIF value of the consignment does not exceed S$400, an import permit is not required to account for the importation of the LVG if they are non-controlled (excluding intoxicating liquors and tobacco). However, the relevant import permit is required if any of the goods are controlled by any Competent Authorities (CAs).

Refer to the Procedures for Postal Parcels and Procedures for Courier Parcels for the import procedures for goods supplied by OVR vendors.

Please note the following details when obtaining the import permits for the OVR regime:

For import of LVG consignments with total CIF value exceeding S$400 (e.g. 3 x S$150 LVG)

• Message Type = In-Non Payment (INP)

• Declaration Type = APS (Approved Premises/Schemes)

• Place of Receipt Code = OVR

• CA/SC Product Code = OVR

• CA/SC Code 1 = GSTN of the OVR Vendor (e.g. XXXXXXXXXXX)

Read more about OVR Regime (opens in new tab) and how to apply for import permits.