Singapore GST
IMPORTANT: Information in this article does not constitute tax, legal, or other professional advice. If you have questions, please contact your tax, legal, or other professional advisor.
What is Goods and Services Tax (GST)?
Goods and Services Tax (GST) is a broad-based consumption tax levied on the import of goods and certain services in Singapore. In other countries, GST is known as the Value-Added Tax or VAT.
Why is WP Engine collecting Singapore GST?
Singapore has recently passed a bill requiring residents to pay GST on digital services (including website hosting) purchased from overseas providers who have exceeded certain sales thresholds. As WP Engine has exceeded these thresholds, WP Engine is required to register with the Inland Revenue Authority of Singapore (IRAS) and charge GST at the standard rate of 7%.
Does Singapore GST apply to me?
Starting February 1, 2020, WP Engine will charge GST on sales to all customers with a Singapore billing address who do not have a valid GST Registration Number on file.
How do I obtain a Singapore GST registration number?
Businesses must register with the Inland Revenue Authority of Singapore (IRAS) to obtain a GST Registration Number. For information on how to register, visit the IRAS website at:
https://www.iras.gov.sg/irashome/GST/Non-GST-registered-businesses/Registering-for-GST/Applying-for-GST-Registration/
How do I enter my Singapore GST Registration Number into the User Portal?
To provide your Singapore registration ID, login via the User Portal and click the “Update Contact Info” dropdown caret. Once here, enter your Singapore GST Registration Number in the “VAT/GST ID” field and click Update.
How does WP Engine calculate the GST amount for each sale?
WP Engine will charge the Singapore standard GST rate of 7% on all digital sales.
Will I be retroactively charged for GST?
WP Engine will not retroactively charge customers GST, but will charge GST beginning February 1, 2020 on a prospective basis. GST will be based on the invoice date.
Example 1
If an annual subscription renews and is invoiced on January 31, 2020, GST will not be included on that invoice. However, the following annual renewal date of January 31, 2021 will include GST.
Example 2
If an annual renewal date is May 1, 2020, the renewal invoice will include GST for the May 1, 2020 – April 30, 2021 period and no additional GST will be added for the retroactive period of May 1, 2019 – April 30, 2020.
