Going on a day-trip to Johor Bahru / Batam or short 2-day overnight trip to nearby regions? Watch your overseas purchases or pay GST for it after returning to Singapore!
Since 19 Feb 2019, the Good & Service Tax (GST) import relief for goods purchased overseas and brought (or imported) into Singapore had been lowered from S$150 to S$100!
If you cross the Straits of Johor into Johor, Malaysia, for a day trip or to Bangkok or Batam or any overseas places for 2 days (less than 48 hours), the amount of your purchases above SGD $100 is subjected to 9% GST (effective from January 2024). Note that this does not apply to dutiable goods such as tobacco, liquor and goods imported for commercial purposes, they are taxed separately.
For example, you go over to Johor Bahru and bring back non-dutiable purchases that are worth, say, S$200 in total value. S$100 relief will be granted and the remaining S$100 will be taxable at 9%. Your GST payable at Singapore Customs Tax Payment Office will be S$9.00 — if declared and paid voluntarily.
If you are away for 48 hours or more, the total relief granted is SGD $500.
If you do not declare your payable tax voluntarily via the red channel or at the Tax Payment Office on returning to Singapore and are caught at the scanning stations or the green channels, you will be fined 10 times the GST amount subject to a minimum of S$50.
In the example above, a penalty of $90 will be imposed instead of just $9, which is really not worth to not declared voluntarily.
Reference: Singapore Customs
Remember also to keep receipts as proofs of purchase, even though total purchases may be below S$100 — you may need to prove that they are below S$100 when queried by customs officers. It is not worth it to buy something at cheaper prices or at discounts, “lost” the receipts and are taxed based on published retail prices or whatever the recorded prices that the Tax Payment Office may refer to.
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