MANY parents are sending their children overseas for studies. But be aware of such arrangements could be subject to Goods and Service Tax (GST) once your children get home.
Singapore customs has issued an advisory to remind overseas Singaporean students that GST exemption is only up to a certain value. If you stay out of Singapore for more than 8 hours, you will be exempt from GST for your total tuition fees for the financial year up to $2,000.
Overseas students have to pay GST only on the value of the goods that exceeds the GST relief. For example, if your tuition fees is $12,000 for the financial year, you will need to pay GST for $10,000 worth of services expenditure. At 7 per cent, that comes up to $700.
Please be reminded that you will have to produce invoices or receipts of your tuition fees to help calculate tax payable. You can pay taxes at the Singapore Customs' Tax Payment Office or at the self-service Tax Payment Kiosk at the check points. Offenders caught not complying could be charged and faces a fine up to $5,000, sentence up to 3 years in prison or both.
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