3286201 - How to Configure GST for Imported Low-Value Goods and Services

With effect from January 1^st, 2023, GST is extended to imported low-value goods and services including digital services and non-digital services in Singapore. For more information, please refer to  GST on Imports of Low-Value Goods and GST on Imported Services.

SAP S/4HANA Cloud

This is a legal change.

The solution is designed to be flexible enough to cover GST on the imported low-value goods and services in an effective manner without disrupting the daily business proceedings. But of-course this transition would require certain manual steps from customer's end as well based on the policy decisions from their financial and tax advisors.

• New tax codes delivered to cover GST on imported low-value goods and remote services.

In SAP S/4HANA Cloud system, the necessary contents are delivered pre-configured by SAP. For Singapore, tax codes delivered by SAP are NUR (Not Upgrade Relevant). This means that only new customers can directly use these new delivered tax codes. Existing customers must add the new tax codes using the Define Tax Codes for Sales and Purchases configuration activity. Please use the search function to open this activity in your configuration environment. The added tax codes will not be overwritten when updating to newer releases.

Example:

If running SAP S/4HANA Cloud 2208 and new tax codes are delivered in SAP S/4HANA Cloud 2302. Please add the new tax codes in the relevant configuration activity. When upgrading to SAP S/4HANA Cloud 2302, please continue to use the new added tax codes.

• Tax boxes delivered to cover GST on imported low-value goods and remote services.

As described in Completing GST returns, four tax boxes are used to cover this new legal change.

Tax boxes 14 and 15 are an expansion of GST on imported low-value goods and remote services. Tax box 16 is a new tax box used to report the value of imported low-value goods that are supplied by an electronic marketplace operator or a redeliverer on behalf of the third-party suppliers. Tax box 17 is also a new tax box used to report the value of imported low-value goods that are directly supplied by you.

Please define the tax boxes in the Define Enhanced Tax Box Structure configuration activity by searching this activity in the configuration environment. The attached file "Singapore GST Return - Tax configuration Pre-Delivered in S4HC 2302.xlsx" shows configuration rules related to the generation of the Singapore GST Return report in SAP S/4HANA Cloud 2302.    

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Singapore GST Return, Low-Value Goods, Imported Services, SG_VAT_F5, SG_VAT_DCL , KBA , FI-LOC-FI-SG , Singapore , How To