Understanding Amazon’s Regional Policies and Tax Requirements for Overseas Sellers

Amazon’s regional policies and tax requirements for overseas sellers, particularly those selling on the Singapore marketplace, involve several key points:

• GST (Goods and Services Tax) on Sales: Sellers registered or required to register for GST in Singapore must charge GST on sales of goods to Singapore customers, file GST returns, and remit collected GST to the Inland Revenue Authority of Singapore (IRAS). GST registration is mandatory if sales exceed S$1 million annually or quarterly, but voluntary registration is also possible. Only GST-registered companies can charge GST.

• GST on Amazon Fees: Amazon charges and collects 7% GST on its fees related to seller transactions (such as referral and advertising fees) and issues valid tax invoices for these fees.

• Income Tax: Foreign sellers without a physical presence or branch in Singapore generally do not pay income tax on sales to Singapore customers. However, if a seller has an established business presence in Singapore, income earned from sales there is taxable.

• Seller Responsibilities: Sellers must comply with Singapore tax laws independently. Amazon does not issue tax invoices to customers on behalf of sellers, so sellers are responsible for issuing tax invoices, collecting GST, and remitting it to IRAS.

• Company Incorporation: To sell on Amazon Singapore, sellers typically incorporate a company locally (e.g., limited liability company, sole proprietorship). This facilitates compliance with tax and regulatory requirements, including GST registration and banking.

• Local Agent Requirement: Foreign sellers required to register for GST must appoint a local agent in Singapore to handle GST matters on their behalf.

• Tax Withholding and Reporting: Amazon is not responsible for collecting or remitting taxes on seller transactions but may comply with legally binding tax authority requests for information. Sellers bear responsibility for all taxes arising from their sales activities.

In summary, overseas sellers on Amazon Singapore must understand and comply with Singapore’s GST and income tax laws, register for GST if thresholds are met, issue tax invoices, and manage tax payments themselves or through a local agent if required. Amazon facilitates GST collection on its fees but does not handle seller tax compliance directly.