How to calculate GST when ordering from overseas

[kane-rulez]

Example for Singapore GST Calculation

* A consumer purchases a 200/- US$ lens from amazon. Shipping cost is US$ 75.82 the insurance works out to (Cost + Shipping x 1%)
When the goods arrive in Singapore, The Singapore Custom Exchange Rate will be first used to convert the US$ to SG$. IF that Amount (Cost price of goods + Shipping cost + insurance) is >400 SG$ then GST of 7% will be charged. and on the 7% GST an additional 5 % service fee will be charged.

See Calculation below


Singapore Custom Exchange Rate : 1.494


Total Declared Value : US$ 200.00

Insurance: 1% x [ Cost + Freight ] = 1% x [ US$ 200.00 + US$ 75.82 ] = US$ 2.76
Sum of All: US$ 200.00 + US$ 2.76 + US$ 75.82 = US$ 278.58


Converting US$ to SG$ = US$ 278.58 x 1.494(Singapore Custom Exchange Rate) = SGD 416.20


7% GST: SGD 416.20 x 7% = SGD 29.13

5% Service Fee: SGD 29.13 x 5% = SGD 1.46

Total Taxes: SGD 29.13 + SGD 1.46 = SGD 30.59

Points to note:

* Shipping and insurance cost is included while calculating the GST.
* GST is calculated on the entire amount and NOT just the amount in excess of the 400SG$ limit.
* So when buying from overseas online stores, factor the above as actual cost of acquisition on the item.

 

[subisisniki]

This is good stuff. Thank you for sharing.

Btw, regarding service fee, I'm in the midst of a mass order and shipping is by UPS. They are charging 5% of GST but min of sgd10 and max of sgd 100. I'm not sure of other courier companies though.

Is it just me or is the custom exchange rate very high?

 

[kane-rulez]

This is good stuff. Thank you for sharing.

Btw, regarding service fee, I'm in the midst of a mass order and shipping is by UPS. They are charging 5% of GST but min of sgd10 and max of sgd 100. I'm not sure of other courier companies though.

Is it just me or is the custom exchange rate very high?

5 % of the GST as service fee is the norm. but the minimum 10$ means that you end up paying around 8$ more for a 400$ shipment.

for me i normally calculate that after all these charges, if the goods are cheaper by at-least 80$ if brought locally then its worth it. i.e for items costing less than 600$.

if the items cost more than that then i also outweigh the savings versus getting local warranty. or the cost of shipping item to service center and back if that is lesser than my savings i made in the first place.