SINGAPORE’S Ministry of Finance (MOF) is seeking public feedback on proposed changes to the Goods and Services Tax (GST) that stem from measures announced during the 2018 Budget, it said on Thursday.

Finance Minister Heng Swee Keat announced during the Budget that GST will be levied on imported services, including a so-called “Netflix tax” on imported digital services like movie and music streaming, from Jan 1, 2020.

The changes will take effect through a reverse charge mechanism for business-to-business imported services, where the local GST-registered business is required to account and pay GST directly to the Inland Revenue Authority of Singapore (Iras) on the services it imports.

Despite the change, MOF noted that most GST-registered businesses will not be affected as they can claim full refund of the GST incurred on their purchases, while those affected are mainly financial institutions and residential property developers, which do not get full refunds as they make GST-exempt supplies.

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