If you’re peeved about the Singapore government’s plan to implement Goods and Services Tax (GST) on online services like Spotify and Netflix, now’s the time to voice out your displeasure.
Starting today till July 28, the Ministry of Finance (MOF) is calling for everyone to provide feedback on the changes it is proposing to make to the GST Act. Aside from enhanced powers for tax enforcement officers and ability to share information between agencies, perhaps the most relevant change that’ll affect us young ’uns is the tax MOF wants to slap on digital services come Jan 1, 2020.
Basically, the Singapore government is simply hungry for a slice of the digital pie. “This will ensure that our GST system remains fair and resilient in a digital economy,” noted the MOF.
Pay the toll
This, of course, is Bad News for most of us digital-savvy kids who consume content mainly through subscriptions and purchases made through internet services. If the changes come to pass, we’ll might have to fork out more for streaming platforms like Netflix, Spotify, Amazon Prime Video, and other similar services. The tax will also hit things such as online software purchases (app store buys, video games on Steam, e-books, movies on iTunes) and quite possibly, services involving the burgeoning cryptocurrency business.
How it works is that overseas suppliers and electronic marketplace operators will have to register themselves with the Inland Revenue Authority of Singapore. These vendors will have to collect GST from their sales and pay it to IRAS — and that’ll mean that these extra costs will be burdened by us, the consumers.
Associate Professor of Accounting Simon Poh from the National University of Singapore Business School forecasts that we might have to foot between 7 to 9 percent GST if the changes take place, according to a TODAY report.
If this does not sound good at all, then you know what do. The public can access the detailed consultation documents for the draft GST (Amendment) Bill 2018 on the MOF website. Interested parties are welcome to send their comments through a prescribed template to pc_gstabill@mof.gov.sg. A summary of the comments and MOF’s responses will be published by this September.
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