ASIA TAX & DUTY REQUIREMENTS

TAX

Some countries in Asia require the payment of Tax for the shipment of parcels over the relevant tax-free threshold.  The tax rate varies for each country in Asia.  Please see the table below for relevant tax thresholds and their associated rates.

DUTY

The Duty threshold varies for each country in Asia. The duty rates vary depending on the type of goods being shipped and their origin.  Please see the table below for the relevant duty thresholds.

COLLECTION OF TAXES AND DUTIES

SEKO suggests retailers collect taxes and duties from customers at shopping cart level.  An example of platforms to facilitate these services are Zonos, Shopify, Eurora and Avalara. Retailers can then use a DDP service to maximise customer experience.

*From 1 January 2023, the GST (VAT) rate for importing goods will change from 7% to 8%. The previous low value GST (VAT) free amount of less than SGD400 will have GST (tax) applied to and be the responsibility of Overseas Vendor Registration (OVR) shippers.  GST & Duty on high value goods for OVR retailers will be collected at border level.  A retailer is an OVR shipper when they sell SGD1million per year globally and SGD100,000 per year into Singapore. The low-value GST (VAT) free amount of less than SGD400 per item applies to non-OVR shippers.

With SEKO, retailers have the following Asia service options...

Delivered Duty Unpaid (DDU/DAP)

The retailer's customer will be notified of any Tax and Duty charges and will be required to pay these amounts. DDU service incurs a USD10-USD16 fee per parcel.

If the end customer does not pay the VAT and Duty, the parcel must still be cleared, and these amounts will be charged back to the retailer with the parcel then forwarded on to the end customer.

Delivered Duty Paid (DDP)

For parcels valued over the Tax and Duty threshold for each country, duties and taxes will be charged to the retailer.  A fee of USD4 per consignment applies to parcels over the tax-free threshold.

DDP minimises delays and returned parcels.  Duties and taxes applicable to each parcel shipped will be calculated at border-level and invoiced to the retailer.  The parcels will not be stopped.