SG Online Seller Tax Guide Part II

8 June 2026

continued from SG Online Seller Tax Guide Part I

6. The OVR Regime for Marketplaces and Redeliverers

Marketplace operators often act as "Deemed Suppliers," providing significant administrative relief for individual sellers by handling the GST collection and reporting.

• Platform Responsibility: Electronic marketplace operators are generally responsible for GST on LVG and remote services sold on behalf of overseas sellers.

• Redeliverers Defined: These are entities that assist customers in purchasing or delivering goods from overseas for a fee. Under OVR, they are often regarded as the supplier for GST purposes.

• Marketplace Elections: Platforms can make B2C or B2B elections to account for GST on behalf of local and overseas suppliers. This consolidates the tax burden, reducing the individual seller's filing complexity.

7. Record-Keeping Standards: Your Compliance Shield

IRAS is digitizing audits, and your records are your only protection. You must maintain documentary evidence for five years.

• Accounting Software: Use IRAS-compliant software to automate tracking and reduce manual error.

• Simplified Record Keeping: Eligible small businesses may keep registers/listings rather than every individual source document.

Compliance Alert Failure to produce evidence during an audit allows IRAS to make upward adjustments to your income and disqualify expense claims. This results in higher tax bills and heavy penalties.

8. Top 5 Pitfalls to Avoid This Tax Season

• Using Rounded Estimates: Reporting "5,000" instead of the exact "5,123.45" flags you for a reporting error.

• Claiming Private Car Costs: Even if you use your car for deliveries, petrol and parking are strictly non-deductible under current regulations.

• Late GST Registration: Crossing the $1M taxable turnover threshold without registering for GST leads to retroactive tax liabilities and penalties.

• Ignoring "Part-Time" Trade: Freelance design or weekend tutoring income must be declared alongside your primary salary.

• Incomplete Proof of Export: You cannot zero-rate (0% GST) international sales without maintaining valid courier consignment notes or postal receipts.

9. Voluntary Disclosure: The Path to Reduced Penalties

If you discover a mistake in a previous filing, the "Early Disclosure" rule is your best strategy. IRAS rewards proactiveness.

• Self-Review: Periodically audit past returns for omissions.

• Disclose Early: IRAS offers reduced penalties for taxpayers who voluntarily disclose errors before an audit is initiated.

10. Industry-Specific Quick-Reference

• Computer Software: Standard software delivered electronically is a digital service. Customized software is always a digital service, regardless of delivery medium.

• Virtual Items: Sales of in-game skins or weapons for real money or Digital Payment Tokens are taxable digital services.

• Advertising Shift: Since 1 Jan 2022, the "viewer access" rule is gone. Advertising is now zero-rated only if the service contractually benefits an overseas person.

• Digital Payment Tokens (DPT): Using tokens like BTC or ETH as payment is disregarded as a supply for GST (as of 1 Jan 2020), but the seller must still charge GST on the underlying product being sold.