Buying from overseas websites like Taobao, Amazon, Shein, and iHerb is part of everyday life in Singapore. For years, small parcels arrived without any tax added, which made online shopping from abroad feel cheaper than buying locally. That changed when the government extended Goods and Services Tax (GST) to low-value goods imported by air or post.
In 2026, with GST sitting at 9%, it is worth understanding exactly when you pay tax on overseas purchases, who collects it, and how to avoid being charged twice. This guide explains the rules in plain terms so you are not caught out at checkout or when your parcel arrives.
What Counts as a Low-Value Good?
A low-value good is a physical item valued at $400 or less that is imported into Singapore by air or post. Before 2023, these small parcels were free of GST. Now they are taxed at the standard 9% rate, the same as if you bought the item in a shop here.
The $400 threshold refers to the value of the goods themselves, not including shipping and insurance in most cases. So a $380 jacket counts as low-value, while a $450 pair of headphones does not — it falls under the separate rules for higher-value imports.
The aim of the change was fairness. Local retailers always had to charge GST, while overseas sellers did not. That gap put Singapore shops at a disadvantage. Taxing imported low-value goods levels the playing field. If you run a local shop, our GST calculator helps you work out the tax on your own sales.
Who Collects the GST?
Here is the part that confuses people. For low-value goods, GST is usually collected by the overseas seller or the online marketplace at the point of sale — not by Singapore Customs when the parcel lands. Large platforms that sell into Singapore are required to register for GST and charge it at checkout.
So when you buy from a registered overseas retailer, you will often see the 9% GST added to your cart before you pay. The price you see at checkout is the final price, and your parcel should clear customs without any extra charge on delivery.
For goods valued above $400, the system is different. GST is collected at the border by Singapore Customs, and you may need to pay it before the parcel is released. This is the same way GST has always worked for larger imports.
When You Might Pay Twice — and How to Avoid It
Double charging can happen if a seller charges GST at checkout for a low-value good, but the courier also tries to collect GST on delivery. This is rare with the big platforms but can occur with smaller sellers who do not handle the rules correctly.
To protect yourself:
- Keep your order confirmation showing whether GST was already charged
- Check whether the seller is GST-registered in Singapore
- If a courier asks for GST on a parcel where you already paid it, show your receipt and dispute the charge
- For purchases near the $400 line, be aware that shipping and currency conversion can tip you over into the higher-value bracket
Most of the time the system works smoothly, and you simply pay 9% at checkout. But knowing the rules means you can spot a mistake when it happens.
What About Digital Services and Subscriptions?
GST does not only apply to physical parcels. Imported digital services — streaming, app subscriptions, cloud storage, online courses, and software — have been taxed in Singapore since 2020. That is why your Netflix, Spotify, and Adobe bills already include 9% GST.
This means there is very little escape from GST on overseas spending now, whether you are buying a physical jacket or a monthly subscription. The one exception remains the sale of digital payment tokens such as certain cryptocurrencies, which are not subject to GST. If you trade or invest in crypto, our crypto tax calculator explains how income from digital tokens is treated.
How Much Does This Add to a Typical Shopper?
Let us put it in real terms. Suppose you spend $300 a month on overseas online shopping — clothes, gadgets, supplements, and the like. At 9%, that is about $27 a month in GST, or roughly $324 a year, that you would not have paid before the rules changed.
For heavy online shoppers, the figure is higher. Someone spending $600 a month overseas is paying around $54 a month, or $648 a year, in GST on imported goods. It is not a huge sum per purchase, but it adds up across a year and removes much of the price advantage that overseas shopping used to have.
The practical takeaway is to compare total prices including GST and shipping before assuming an overseas buy is cheaper. Sometimes a local retailer, once you factor in faster delivery and easier returns, works out about the same.
The Bottom Line
In 2026, GST at 9% applies to most overseas online purchases, whether they are low-value parcels under $400 or digital subscriptions. For low-value goods, the tax is usually charged at checkout by the seller, so the price you see is the price you pay. Keep your receipts, watch for double charging near the $400 line, and remember that the old tax-free advantage of overseas shopping has largely gone. When in doubt about the GST on a sale, our GST calculator gives you a quick, clear answer.