Let’s not pretend to be surprised. This sucks but we have to pay what we have to pay, I guess?
Starting next year, 1 January 2020 (Happy New Year!), the Inland Revenue Authority of Singapore (IRAS) will require digital services to register for GST under the Overseas Vendor Regime (OVR). Regime. Really?
The reason for the charge is to level the playing field for local service providers who already factored the GST amount in their charges.
More than 100 overseas digital service providers will be affected by the change. This includes our beloved Netflix, Adobe Creative Suite, Microsoft Office and cloud storage services.
But there’s an interesting clause to it.
According to a report by the new paper, it seems like only overseas service providers with an annual global turnover of $1 million that provide more than 100,000 worth of digital services over a 12-month period will need to register and charge GST.
This would mean that smaller players in the market like many on The Indie Hackers podcast will not be impacted by the change.