ACCOUNTING
summary revised taxation.docx

summary revised taxation.docx - Article Title E-shoppers...

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Article Title: E-shoppers may have to pay more taxes for goods from overseas Published: 7 Oct 2015 Website Title: Channel NewsAsia Link: Date Accessed: March 25 2017 Source of Search Engine: Google Article 1: Good and Service Tax (GST) Summary of the article In summary, the article is about Organisation for Economic Co-operation and Development (OECD) calling on the governments to collect tax revenue from online shoppers for imported goods from international e-commerce transactions. Digital economy is getting more popular and it is noted that income generated from local consumers for online retailers operating abroad are not taxable since it is regarded as source of Singapore. According to the trend worldwide, procedures have been taken to collect GST on the digital economy in other countries. In other words, more compliance costs need to be incurred if GST has to be registered for online merchants in countries as a result of legislative changes to collect GST on the digital economy. ("E-Shoppers May Have To Pay More Taxes For Goods From Overseas") Statement of the law and legal issues The goods bought online from abroad by local consumers are excluded from GST. The exemption of GST applies to Cost, Insurance and Freight (CIF) value of $400 or lower as well except for dutiable goods. The exemptions of tax revenues made from cross-border e-commerce transactions have resulted in the outflow of funds in Singapore. The OECD hence requested the governments to collect tax revenues. GST or Value Added Tax (VAT) is an indirect consumption tax on the goods and services supplied in Singapore and the imported goods. It was implemented on 1 st April 1994 in Singapore and is modeled after adopting VAT by United Kingdom and New Zealand. Legislation in Singapore to regulate the collection of tax revenues states that it is compulsory to register for GST in the event when the annual turnover of the business is over 1 million SGD.
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