Singapore Overseas Online Shopping GST & Low Value Goods (LVG) Import Tax Guide 2026

With the explosion of global e-commerce, shopping online from international merchants—whether purchasing items on Amazon, AliExpress, ASOS, Taobao, or eBay—now involves mandatory Singapore GST on imported goods and overseas online purchases. If you are importing products into Singapore from Malaysia, China, Europe, or the United States, understanding how Singapore Low Value Goods (LVG) GST works is crucial to avoid unexpected customs clearance fees.

1. The S$400 Low Value Goods (LVG) Rule Explained

Prior to 2023, goods imported into Singapore by air or post valued at S$400 or less enjoyed a GST relief exemption. However, to level the playing field between local brick-and-mortar retailers and foreign e-commerce giants, the Singapore Government introduced the Low Value Goods (LVG) GST framework.

Under current rules in 2026, all low-value goods (LVG) valued at S$400 or below imported via air or post attract the standard 9% Singapore GST.

2. Why Amazon, AliExpress & ASOS Charge 9% GST

If you shop on Amazon Singapore, AliExpress, ASOS, Taobao, or iHerb, you will notice 9% GST automatically added to your checkout total when delivering to a Singapore address.

This is governed by IRAS's Overseas Vendor Registration (OVR) regime. Under OVR rules, any overseas merchant or digital marketplace platform must register for GST in Singapore if they meet two mandatory criteria:

• Global Annual Turnover: Exceeds S$1 million; and
• Supplies to Singapore Consumers: Supplies of low-value goods or digital services to non-GST registered consumers in Singapore exceed S$100,000 per year.

3. Import GST on Shipments Exceeding S$400

When ordering high-value items—such as high-end electronics, designer apparel, luxury watches, or industrial machinery—valued above S$400, GST is collected through Singapore Customs rather than at the merchant's online checkout.

When the package arrives at Changi Airfreight Centre or Singapore Port, Singapore Customs calculates 9% import GST based on the total CIF Value (Cost + Insurance + Freight).

4. How Shipping & Freight Charges Affect Import GST

A common misconception when searching for "freight charges gst singapore" or "singapore shipping gst" is that tax applies only to the item price itself.

In reality, IRAS and Singapore Customs require GST to be paid on the total landed cost. If an item costs S$380 and international express shipping costs S$50, the total CIF value is S$430. Because S$430 exceeds the S$400 threshold, the shipment shifts into the customs clearance process and 9% GST applies to the entire S$430 amount (resulting in S$38.70 GST payable).

5. Singapore Customs Clearance & FedEx GST Permits

When importing goods into Singapore via express couriers like FedEx, DHL, UPS, or EMS, couriers act as declaring agents to submit customs trade documentation (GST import permit).

Businesses importing goods for resale can claim back this import GST as Input Tax on their quarterly IRAS Form F5 filing, provided they retain official Singapore Customs Inward Permits and courier tax invoices. Calculate your exact tax liabilities with our Singapore GST Calculator.

6. Singapore Digital Services Tax Framework

In addition to physical goods, Singapore applies 9% GST on imported digital services. Digital services encompass any service supplied over the internet with minimal human intervention:

• Streaming Media: Netflix, Spotify, YouTube Premium, Disney+.
• Software & Cloud Applications: Adobe Creative Cloud, Microsoft 365, Google One, Zoom, SaaS subscriptions.
• Online Gaming & Mobile Apps: Steam game purchases, Apple App Store, Google Play Store.
• Digital Advertising & E-Learning: Google Ads, Meta Ads, Coursera courses consumed by local residents.

7. Frequently Asked Questions (FAQ)