Why are Singapore OVR-registered overseas entities excluded from the InvoiceNow GST requirement?
Overseas entities registered for Singapore GST under the Overseas Vendor Registration (OVR) regime—including both full OVR and Pay-only registrants—are excluded from the IRAS GST InvoiceNow transmission requirement. Similarly, businesses that are liable for GST registration solely due to the Reverse Charge mechanism are also excluded. These exclusions reflect that InvoiceNow-Ready domestic accounting software is not practically accessible to overseas entities.
What are the OVR Full and Pay-only regimes?
The Overseas Vendor Registration (OVR) regime requires overseas suppliers to register for Singapore GST when their B2C digital services supplied to Singapore customers exceed the GST registration threshold. The full OVR regime requires the overseas vendor to charge, collect, and remit GST on all covered B2C digital services. The Pay-only regime is a simplified option where the overseas vendor remits GST without full administrative obligations. Both regimes are excluded from the InvoiceNow transmission requirement because the infrastructure assumes domestically accessible InvoiceNow-Ready software.
Why are Reverse Charge registrants excluded?
The Reverse Charge mechanism applies to Singapore GST-registered businesses that receive imported services from overseas suppliers. These businesses account for GST on behalf of the supplier under the reverse charge. Businesses that are required to register for GST solely due to the reverse charge obligation—not because they make taxable supplies themselves—are excluded from the InvoiceNow transmission requirement, as their registration is for accounting purposes rather than commercial invoicing.
Frequently Asked Questions
- If an OVR entity also makes B2B supplies to Singapore GST-registered businesses, is it still excluded?
- The OVR exclusion applies specifically to overseas entities registered under the OVR regime. If an overseas entity establishes a Singapore legal presence and registers for GST as a locally incorporated entity, the InvoiceNow requirements applicable to that locally incorporated entity would depend on whether it falls within the mandatory phases based on the applicable rollout timeline and GST registration type.
- Are there plans to include OVR entities in future InvoiceNow phases?
- IRAS has indicated that compulsory GST registrants and remaining existing GST businesses will be brought into scope in future phases following further consultation. The current exclusion of OVR entities is specific to the current rollout phases. Overseas vendors should monitor IRAS announcements for future phase expansions.