Reverse-charge and Overseas Vendor Registration (OVR) — Timeline and processing benchmarks

Reverse charge and Overseas Vendor Registration (OVR) are the two mechanisms through which Singapore collects GST on imported services and low-value goods. Reverse charge applies to GST-registered businesses buying services from overseas suppliers, while OVR requires qualifying overseas vendors to register and charge GST. This 2026 guide explains how each works, who is caught, and the compliance timelines.

Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.

What reverse charge and OVR are

Both regimes exist to level the playing field between local and overseas suppliers. Before they were introduced, services and digital products bought from abroad escaped Singapore GST, disadvantaging local providers. The Goods and Services Tax Act 1993 was amended to close this gap, first for imported digital services and later broadened to a wider range of imported services and low-value goods.

Reverse charge shifts the responsibility to account for GST from the overseas supplier to the Singapore business customer: the customer self-accounts for GST on imported services as if it were both supplier and recipient. OVR instead places the obligation on the overseas vendor, who must register for Singapore GST and charge it at the point of sale to Singapore customers.

Who reverse charge applies to

Reverse charge applies to GST-registered businesses in Singapore that procure services from overseas suppliers and are not entitled to full input tax credit, such as businesses that make exempt supplies (for example, certain financial services) or non-business activities. It also captures GST-registered businesses generally for the accounting mechanics of imported services. A partially exempt business that would otherwise avoid GST on imported services is the classic target.

From 1 January 2023, the scope was extended so that reverse charge covers a broader base of imported services, and businesses that are not GST-registered may be pulled into compulsory registration if their imported services exceed the registration threshold.

Who OVR applies to

OVR applies to overseas vendors and electronic marketplace operators that make business-to-consumer supplies of digital services, non-digital services and low-value goods to customers in Singapore. An overseas vendor must register for Singapore GST if its global turnover exceeds S$1 million and its business-to-consumer supplies to Singapore exceed S$100,000 in a 12-month period.

Since 1 January 2023, OVR also covers imported low-value goods, meaning goods valued at S$400 or below that are imported by air or post, and remote services supplied to non-GST-registered customers. Marketplaces are often treated as the supplier for GST purposes where they facilitate these sales.

The current GST rate and numerical thresholds

The GST rate is 9% with effect from 1 January 2024. The key thresholds to remember are: the S$1 million compulsory GST registration threshold for taxable turnover; the OVR global turnover trigger of S$1 million paired with S$100,000 of Singapore B2C supplies; and the S$400 low-value goods ceiling for imported goods caught by OVR. Reverse charge has its own S$1 million threshold measured on the value of imported services for otherwise non-registered persons.

Compliance timelines and filing

Once liable, an overseas vendor should apply for GST registration under the simplified pay-only OVR regime, and registration is typically processed within about 3 weeks of a complete application. GST-registered businesses account for reverse charge GST in their normal GST returns, which are filed quarterly by default, with payment due one month after the end of each accounting period.

Record-keeping obligations under the Goods and Services Tax Act 1993 require businesses to retain supporting documents for at least five years. Errors in reverse charge or OVR accounting are corrected through the GST return or voluntary disclosure.

Common mistakes and gotchas

The frequent errors are partially exempt businesses overlooking their reverse charge liability entirely; overseas vendors monitoring only the global turnover trigger while ignoring the S$100,000 Singapore B2C limb; treating all imported services as caught when some are excluded; and failing to update systems for the 9% rate. Marketplaces sometimes miss that they, rather than the underlying merchant, are the deemed supplier.

Reverse-charge and overseas vendor registration — key takeaways

A reverse-charge and overseas vendor registration project comes down to meeting the eligibility conditions, budgeting for the fees set out above, and allowing for the stated processing timeline. Plan early, keep documentation complete, and confirm the latest official figures before you file.

Related guides

Official references

FAQs

What is the difference between reverse charge and OVR?
Reverse charge makes the Singapore business customer self-account for GST on imported services, while OVR makes the qualifying overseas vendor register and charge GST.

When must an overseas vendor register under OVR?
When global turnover exceeds S$1 million and business-to-consumer supplies to Singapore exceed S$100,000 in a 12-month period.

What is the current GST rate?
The GST rate is 9% with effect from 1 January 2024.

Does OVR apply to physical goods?
Yes. Since 1 January 2023, OVR covers imported low-value goods valued at S$400 or below imported by air or post.

How long does OVR registration take?
A complete simplified OVR registration application is generally processed within about three weeks.

Need help with this? Call, SMS or WhatsApp +65 8501 7133, or email [email protected]. Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.