[ad_1]
Subscribers of streaming and other digital services, take note.
Providing a fictitious overseas billing or residential address in order to game an account with overseas-based vendors may constitute tax evasion once the goods and services tax (GST) for imported digital services kicks in on Jan 1.
Announcing this and other changes to the law in Parliament on Monday (Nov 4), Second Minister for Finance Lawrence Wong said it was necessary to make the misrepresentation of information an offence for the Inland Revenue Authority of Singapore (Iras) to enforce the tax effectively.
This is because suppliers operating overseas will rely on information provided by customers to determine if they should collect GST, he said.
Dubbed the “Netflix tax”, overseas vendors of online services such as streaming music or movies will have to pay GST if they have an annual global turnover of over $1 million and make more than $100,000 in providing digital services to Singapore.
The tax, announced during last year’s Budget, is aimed at levelling the playing field for local retailers, which must pay GST.
[ad_2]
Source link
