VAT refund in Singapore: A complete guide to tax-free shopping in Singapore

Travelling to Singapore? For many Brits, Singapore is well-known as a part of a stopover rather than a full visit in its own right. The country is relatively small to take a ten-hour flight just solely for it! But don’t worry: You won’t be bored!

Singapore is a perfect combination of tradition and modernity. And if you are very into shopping, you’ve come to the right place! Shopping in Singapore means a world-class experience. You can actually observe the cultural diversity in its shopping districts. There’s something for everybody: you can find anything from high-end fashion brands to charming boutiques and traditional craft shops.

However, Singapore is also notorious for its high cost of living! A short trip might also be costly. On top of its price, you will be charged a VAT of 9%. That’s a lot of money! The good news is Singapore allows eligible tourists to participate in the Tourism Refund Scheme (TRS), meaning you can claim back your VAT in Singapore. This article will answer every single question you might have about TRS so that you can conquer the shopping scene with the best tax-free deals!

If you are looking for one more smart way to save even more, read this article and find out about Wise!

How much is VAT in Singapore?

First things first, let’s break down the basics! The VAT in Singapore is often referred to as the Goods and Services Tax (GST). In this article, you will see both terms used interchangeably, and they mean the same thing. The GST in Singapore is 9%, which is applied to most of the goods and services sold in Singapore.

You might sometimes see the rate of zero percent as well. This means your goods and services are in the taxable category, but at a rate of 0%. You can refer to the table below for a quick check¹:

How much VAT is refunded in Singapore?

The standard VAT rate in Singapore is 9%, but it's very unlikely that you will receive the whole amount back². This is because you will have to pay the handling fee. If you choose to receive your money through credit cards, you will also need to pay for the extra currency exchange fees.

This extra exchange fee is charged when the denominated currency of the card (e.g., GBP) is different from the local currency (e.g., SGD), and your card provider will convert your currency. Usually, your card provider also chooses the conversion rate, typically with a hidden costly markup. But don't worry! You can minimise costs on currency conversion by receiving your refund with a Wise debit card. This card only charges a small fee and converts at mid-market rates without any sneaky markups if a conversion occurs. What makes it even better? The card also allows you to hold 40+ currencies, including SGD.

Learn more about Wise card

Who is eligible for tax free shopping in Singapore?

There are certain requirements you need to meet in order to participate in this scheme³:

• You must be at least 16 years old;
• You are not a Singapore Citizen or Permanent Resident;
• On the date of purchase, within the prior 3 months, or on the date you submit your GST refund claim at the airport, you don’t possess any passes that allow you to work or study in the country for an extended period of time. Additionally, you must not possess any Identification Card issued by the Ministry of Foreign Affairs Singapore;
• You are not an airline crew member who is on duty;
• You are leaving Singapore from Changi Airport or Seletar Airport;
• You will take the products with you in your personal luggage within two months upon your purchasing date; and
• Your purchase must cost at least 100 SGD (including GST). An eligible purchase may include up to 3 same-day invoices/receipts from retailers with the same GST registration number and shop name.

However, even if you meet all of these requirements, there are certain categories that you cannot claim VAT refund in Singapore. These categories include³:

• Services performed in Singapore;
• Goods which are wholly or partly consumed in Singapore;
• Goods purchased for business or commercial purpose;
• Goods exported by freight;
• Accommodation in hotel, hostel, boarding house or similar establishments; and
• Goods not presented for inspection.

How to get GST refund in Singapore?

Now that you have all the information about the Tourist Refund Scheme, let's explore the process of how to get VAT refund in Singapore:

Receive a digital eTRS tax exemption form

When shopping, check if the store you visit is on the Tourist Refund Scheme before purchasing anything. You can either look for the "Tax-Free" shopping logo/sign displayed at the shop or ask the sales assistants to see if your purchase is eligible.

The sales assistants will likely ask you to show your passport and electronic visit pass issued by the ICA. So make sure you bring your physical passport with you. The electronic Visit Pass should be sent to your email after you submit your SG Arrival Card before coming to Singapore.

Upon confirmation of your eligibility, the sales assistant will issue an eTRS transaction. It's important to note that this process is entirely digital, with no physical eTRS documents. You can easily access the information on https://touristrefund.sg or through the mobile app "eTRS Singapore."

Validate your purchase at the airport

There are two ways you can validate your purchase for your VAT refund in Singapore:

eTRS Self-help Kiosk:

• If your items are in your checked luggage, make sure to apply for your VAT refund in Singapore beforeyou go through immigration. When you arrive at the airport, head to the electronic TRS (eTRS) self-help kiosk to apply for your GST refund. You will need to scan your physical passport to retrieve all eTRS transactions tagged to your passport.
• If your items are in hand-carry luggage, you can find the self-service machines after you go through immigration. You will also need to scan your physical passport to retrieve all eTRS transactions tagged to your passport.

Mobile Applications:

You can also verify your purchase through either Global Blue’s “SHOP TAX FREE” or Tourego’s“Tourego-Full Mobile Tax Refund”. You need to ensure that you are doing your validation using the airport’s wifi, and that you are within 15 metres of the eTRS Self-Help kiosks.

Whether you choose to validate your purchase through the self-help kiosk or mobile, you won't receive any confirmation paper after your transactions have been verified. So check the screen to see if your application is actually approved. If your goods can't be confirmed, ask the Customer officers to help you. Make sure that you have in your hands the goods, the original invoices, your passports, and your boarding pass. If you fail to present these documents, your VAT refund in Singapore might be denied.

Obtain a VAT refund

Now, here comes the most exciting part of your VAT refund journey in Singapore. It’s time to get your VAT refund back in Singapore! You can choose your preferred options from:

• Through cash: Bring your passport to the GST Cash Refund Counter at the Departure Transit Lounge Area to claim your money. However, you can only receive your VAT refund in Singapore through cash if you depart from Changi Airport.
• Via credit card: You can go ahead and board your plane. Your VAT refund in Singapore will be credited to your card within ten days.
• With your Alipay account: the refund amount will be credited to your account immediately.

Whether you're in Singapore for a short stopover or it's your main destination, the Lion City is always an exciting place to be, but it can be expensive!

However, you now have in your hand a complete guide to tax-free shopping in Singapore to reduce your costs. The country utilises a state-of-the-art digital refund scheme, making the VAT refund process seamless and hassle-free. But still, it's important to arrive at the airport early so you have enough time to navigate through the tax refund process in Singapore.

And if you want to avoid extra costs on currency conversion, consider ordering your Wise card for a one-time fee of 7 GBP today!

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Please be aware that tax regulations and procedures may change over time. Always verify the information with official sources for the most accurate and up-to-date guidance.

Sources used for this article:

Sources last checked on 23-Jul-2024.