GST is the buzzword on the street right now thanks to the 25-year-old Singaporean woman who was stopped by customs officers at Changi airport after returning from a shopping spree in Paris.
Turns out her designer items were worth more than $11,000 and she had to declare them for Goods and Services Tax, or GST, payment. She now risks being slapped with an even bigger fine for dodging customs.
According to Singapore Customs, all goods, including souvenirs, gifts and products for personal use, brought into Singapore are subject to 7 per cent GST.
There are sneaky ways to avoid the GST trap once you come back from your overseas holiday but remember that failure to declare the value of purchases is an offence under the Customs Act and the GST Act. Offenders can be prosecuted in court and fined up to $10,000 and jailed for up to three years.
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Make your new purchases look like you didn’t just buy it in Paris or New York a few days ago. Take it out of its original packaging, get rid of the paper stuffing, rip all price tags off, and if you can “use” it immediately, do so.
Don’t dump all your new products into one suitcase because if you get stopped, you’re going to be short of plenty of cash. Distribute your swanky new goods amongst your family members or friends who are also travelling with you.
We’re not sure how true this is but some travellers have recommended flying back to Singapore on a morning flight as the likelihood of getting checked by customs officers is lower. We’re talking really early though – think a 6am arrival!
While all goods imported into Singapore are subject to GST, there are certain exemptions. You won’t be charged for non-dutiable goods imported by post and worth below S$400. Find out more here.
Remember, it’s one thing to come back with a couple of expensive items that are for your own personal use, but it’s another thing entirely to return with a suitcase full of luxury bags, expensive TCM ingredients or electronics. Be sensible, be discreet and hopefully Singapore Customs will let you walk on by.