In this guide · 8 sections
- 01The two IRAS rules behind GST on overseas software
- 02Why some bills show 9% GST and others show none
- 03If you are not GST-registered
- 04If you are GST-registered: give vendors your GST number
- 05Reverse charge: who has to apply it
- 06How to record overseas software bills in Xero or QuickBooks
- 07Do it yourself or get help?
- 08Frequently asked questions
Short answer
Overseas vendors registered under IRAS's OVR regime charge 9% GST to customers who are not GST-registered. A GST-registered business should give the vendor its GST number so no GST is charged; if it was charged by mistake, IRAS says to ask the vendor for a refund, not claim it.
The two IRAS rules behind GST on overseas software
IRAS's page on GST on imported services explains that two regimes started in 2020 and were widened in 2023, so that software and services from overseas are taxed like local ones.
| Regime | Who it applies to | What happens |
|---|---|---|
| Overseas vendor registration (OVR) | Overseas suppliers with global turnover of at least S$1 million and B2C supplies to Singapore above S$100,000 | The vendor registers with IRAS and charges GST to customers who are not GST-registered |
| Reverse charge | GST-registered Singapore businesses not entitled to full input tax credit | The business accounts for GST on imported services itself, as if it were the supplier |
From 1 January 2020 OVR covered digital services such as software and subscriptions; from 1 January 2023 it covers all "remote services" that can be supplied and received without the two parties being in the same place, according to IRAS's overseas businesses page.
Why some bills show 9% GST and others show none
Most software bills fall into one of three patterns. Check the seller's legal name and address on the invoice first; that tells you which one you are looking at.
| Pattern | Example from vendor help pages | What you see on the bill |
|---|---|---|
| Billed by a Singapore company | Google Ads: Google says all Google Ads sales in Singapore are subject to 9% GST | 9% GST, like any local supplier |
| Overseas vendor under OVR, GST number not given | Meta ads: GST applies if your sold-to country is Singapore and no GST number is on the ad account | 9% GST charged |
| Overseas vendor under OVR, GST number given | Meta ads with your GST number added | No GST charged |
| Tax ID shown but tax still charged | Canva: adding a tax ID puts it on the invoice but does not remove tax | GST charged; ask the vendor about exemption |
Sources: Google Ads taxes by country, Meta's Singapore GST page and Canva's billing details help.
If you are not GST-registered
For a business below the GST threshold, the rule is simple: overseas vendors registered under OVR charge you 9% GST, and you cannot claim it back. It is part of the cost of the subscription.
- Record the full amount, including GST, as the expense (for example Software subscriptions or Advertising).
- In Xero or QuickBooks, use a no-GST tax rate on these bills, because you are not claiming input tax.
- Keep the invoice anyway. If you register for GST later, IRAS has separate rules on claiming GST incurred before registration.
Do not enter your UEN in a vendor's GST or VAT number field if you are not GST-registered. A UEN is not a GST registration number, and the vendor may stop charging GST that it should charge.
If you are GST-registered: give vendors your GST number
IRAS says that a GST-registered business buying remote services from a GST-registered overseas vendor needs to give the vendor its GST registration number, so the vendor does not charge GST on business purchases. If you forget and are charged GST, IRAS says to contact the vendor for a refund instead of claiming input tax. If reverse charge applies to you, account for it on the purchase.
List every overseas subscription
Go through a month of card statements: software, ads, cloud storage, design tools, AI tools. Note the seller's legal name on each invoice.
Check whether each vendor is GST-registered
Use IRAS's GST-registered business search, linked from the imported services page, to check the vendor's registration.
Add your GST number in each billing account
Google Workspace: Admin console, Billing, Payment accounts, payment settings, tax info. Meta: the ad account's payment settings. Canva: Settings, Billing, Billing details, Tax ID.
Use your exact legal name and address
Match your ACRA and IRAS records so invoices are issued to the right entity.
Check the next invoice
Confirm GST is no longer charged by OVR vendors. Changes usually apply only to future invoices.
Ask for refunds on wrongly charged GST
For past invoices where GST was charged despite your registration, contact the vendor. Do not claim that GST as input tax.
Google's tax information page for Workspace notes that if you pay by monthly invoice rather than automatic payment, you submit the tax ID through Google Workspace support instead.
Reverse charge: who has to apply it
Reverse charge catches a smaller group: GST-registered businesses that are not entitled to full input tax credit, for example because they make exempt supplies (some financial services, residential property) or receive non-business income such as donations. IRAS says they must account for GST on imported services from 1 January 2020 and on low-value goods from 1 January 2023, as if they were the supplier, and may then claim input tax under the normal recovery rules.
If you think this applies, do not guess. Accounting software has specific reverse charge tax codes, and the amounts go into particular boxes of the GST F5. Our Xero GST F5 return checklist shows where they appear in Xero.
How to record overseas software bills in Xero or QuickBooks
Once vendor billing is tidy, set up your accounting software so these bills post the same way every month.
Set up once
Overseas card payments often add a bank foreign transaction fee, which is a separate expense. For the difference between receipts, invoices and tax invoices, see receipt vs invoice vs tax invoice in Singapore. If you are setting up Xero for the first time, our Xero setup checklist covers tax defaults.
Do it yourself or get help?
Adding your GST number to each vendor and setting bank rules is an afternoon of admin you can do yourself. Ask your accountant two questions: are we entitled to full input tax credit (so reverse charge does not apply), and which tax code should each recurring vendor use?
If you want the accounting software side done for you, our Accounting Software Setup (S$490, paid upfront) sets up Xero, QuickBooks or Zoho Books with your chart of accounts, tax rates and supplier defaults. We do not file GST returns or give tax advice; your accountant does. IT Sorted is a Singapore-based team of developers with over 10 years of experience.
Frequently asked questions
They bill under different arrangements. Meta says GST applies to Singapore advertisers who have not added a GST registration number to their ad account, which matches the overseas vendor rules. Google says all Google Ads sales in Singapore are subject to 9% GST. Check the seller's legal name on each invoice and ask your accountant how to treat it.
Usually not. IRAS says a GST-registered business should give its GST number to a GST-registered overseas vendor so GST is not charged. If GST was charged anyway, IRAS says to ask the vendor for a refund rather than claim it as input tax. Bills from a Singapore-registered supplier on a valid tax invoice follow normal input tax rules.
Only enter a GST registration number if you are GST-registered. A UEN is your business identifier, not a GST number. If you are not GST-registered, overseas vendors under the OVR regime are supposed to charge you GST, and you simply record it as part of the expense.
Reverse charge means you account for GST on services bought from overseas as if you were the supplier. IRAS applies it to GST-registered businesses that are not entitled to full input tax credit, such as those making exempt supplies or receiving non-business income. A fully taxable small business usually does not have to apply it. Confirm with your accountant.
Not by itself. Canva's help centre says adding a tax ID puts the number on your invoices but does not make the account tax-exempt, and tax may still be charged. Canva says it may remove tax for VAT or GST-registered businesses where local rules allow, through its tax-exempt invoice request process.