Overview
A leading global Swedish furniture retailer wanted to import goods into Singapore for local supply. However, without a local entity in Singapore, the multinational corporation (MNC) faced challenges in managing its import operations and Goods and Service Tax (GST) related matters. To facilitate the importation of their products into Singapore and assumes all the GST responsibilities on behalf of the Swedish furniture retailer, they engaged CrimsonLogic as their Importer of Record (IOR) Section 33(1) agent.
Customer Background
Company: Global Furniture Retailer
Industry: Retail
Challenge
The MNC faced numerous challenges due to its absence of a local entity in Singapore:
- Compliance with local regulations and obtaining the necessary certifications: Navigating local customs and Competent Authorities’ (CA) regulations, including meeting product standards, safety regulations, securing necessary import licenses, product registrations, and certifications.
- Tax management: Managing GST responsibilities such as reporting and payment of GST to Inland Revenue Authority of Singapore (IRAS).
Without a local entity, customs clearance, import processes and assuming GST responsibilities became complex and tedious leading to delays, legal issues, and fines.
Solution Provided
- Register GST for MNC: Assist the MNC with GST registration in Singapore under a simplified pay-only regime; overseas vendor registration (“OVR”) regime through a third-party tax consultant.
- Importing goods: Facilitating the importation of goods on behalf of the MNC, including obtaining the necessary import licenses and registering products with the relevant CAs.
- Managing tax matters: Handling GST payments to Singapore Customs upon importation and coordinating with a third-party tax consultant to manage the MNC's quarterly GST filing under their own GST registration number.
- Import GST reporting and listing: Providing detailed import lists for the MNC's GST filings and quarterly importation statistics for quarterly GST filing to IRAS.
