Another change that is closely related to the introduction of GST on LVG is the OVR regime.

The OVR regime was introduced by IRAS so that overseas suppliers that makes supply of digital services to non-GST registered customers in Singapore (i.e. people like you and I) are registered for GST in Singapore (if the conditions are met), and to charge and account for GST on the supplies. 

From 1 January 2023, the scope of OVR regime will also be extended to include non-digital services (collectively known as remote services) and LVG. All in effort to level the playing field for local businesses in Singapore to compete effectively. 

Remote services include any services where at the time of the performance of the service, has no necessary connection between the physical location of the recipient and the place of the physical performance of the service. But, excludes the following services:

The key thing to note on the change in the OVR regime come 1 January 2023 would basically be the GST registration criteria. Generally, with effect from 1 January 2023, overseas suppliers will be liable for registration under the OVR regime if:

If you are an overseas electronic marketplace operator or an overseas redeliverer, it will be slightly more complicated and it will be best to seek a professional’s help if you are unsure of your GST registration liability. Feel free to speak to us!

On a side note, in view of the update involving LVG and remote services in the coming January 2023, IRAS has updated the following e-tax guides. Have a read in case you have missed them. 



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