Pay GST for Hoilday Purchase?

[MarrickG]

Do you have to pay a Goods and Service Tax (GST) when bringing back holiday purchases from other countries?

It's a yes - as one traveller found out when he was crossing the Causeway back into Singapore.


The reader was stopped at the Causeway border checkpoint in November and requested to fork out the due GST on his holiday purchases, Stomp reported.

The reader said he was shocked because such a thing had never happened to him before.

Moreover, he added, he was not aware of the rules until the incident occurred.

The puzzled reader told Stomp that he had only bought branded clothes at a Malaysian factory outlet and that the clothes were only for himself.

In the end, he had to cough up about $20 for the RM600 (S$245) worth of clothes he bought.

The reader bemoaned: "I just wish that if the rule exists, they would make it consistent and ask everyone to pay GST on clothes bought overseas rather than pull aside random people and pull this stunt on them."

According to the Singapore Customs, there is a seven per cent GST levied on all goods imported.

Vacationers, other than holders of work permit, employment pass, student’s pass, dependant’s pass or long term pass, will be given a GST rebate on the total value of new articles, souvenirs, gifts and food preparations (excluding liquors and tobacco) based on the following:

* S$50 if traveller has been away from Singapore for less than 24 hours;
* S$150 if traveller has been away from Singapore for 24 hours or more but less than 48 hours; and
* S$300 if traveller has been away from Singapore for 48 hours or more.

The above rates only apply if the traveller is 18 years old and above.