Shopping from overseas sites like Amazon US, Rakuten Japan, or Korean beauty stores is a great way to find better deals, wider selection, or exclusive products. But if you’re a shopper in Singapore, you’ve likely come across the dreaded Goods and Services Tax (GST).
In this article, we’ll explain what GST is, when it applies, and how you can legally avoid or reduce your GST bill when shopping internationally — especially using parcel forwarding services like Buy&Ship.
🧾 What Is GST for Online Overseas Shopping?
As of 1 January 2023, Singapore imposes 8% GST on all imported goods, even those under S$400 in value. This means:
- Yes, that small skincare order from Korea could be taxed
- GST is based on CIF value = Cost + Insurance + Freight
🧮 Example:
| Item Price | Shipping | CIF Value | GST (8%) |
|---|---|---|---|
| S$200 | S$20 | S$220 | S$17.60 |
If your CIF value exceeds S$400, you will definitely need to pay GST at delivery.
🚫 Can I Completely Avoid Paying GST?
Yes — but only if your total parcel CIF value stays under S$400. That’s why it’s important to:
- Know how to calculate CIF
- Use consolidation strategically
- Choose services that don’t overcharge shipping
Let’s break it down further.
🧠 5 Smart Ways to Avoid GST When Shopping Online
1. 💡 Know the S$400 GST Threshold
The magic number is S$400 (CIF value). Stay below this, and your parcel is exempt from GST.
🧮 CIF = Item Price + Shipping Fee + Insurance (if any)
Check the retailer’s shipping rates and choose low-cost shipping if possible. If using Buy&Ship, your shipping cost will be based on weight, not price.
2. 📦 Split Orders into Separate Shipments
Let’s say you’re planning to buy:
- Item A = S$250
- Item B = S$300
Combined = S$550 → GST applicable
But if you ship each item separately, you can keep both under the S$400 threshold.
✅ With Buy&Ship, you can ship packages separately by request, helping you avoid tax.
3. 🧳 Avoid Consolidating High-Value Items Together
Buy&Ship lets you consolidate multiple parcels into one international shipment — great for saving on shipping.
BUT: If the combined value exceeds S$400, you may trigger GST.
🎯 Tip: Consolidate smaller, low-cost items together. Keep expensive items as standalone parcels.
4. 🌐 Use Buy&Ship’s Transparent Cost Calculator
Before deciding how to ship, try Buy&Ship’s Pricing Page to estimate total costs.
- Shipping fee: S$9 for first lb, S$7 for each additional lb
- Choose your items based on weight + value to keep CIF low
You’ll always have full control over when and how to ship your items.
5. 🛒 Choose Local Currency & Promotions Wisely
If you’re shopping on global platforms (e.g., Amazon, SSENSE, iHerb):
- Avoid paying in SGD upfront — it often includes built-in GST
- Pay in original currency (USD, JPY, etc.)
- Use overseas-friendly credit cards for better exchange rates
- Combine Buy&Ship discounts and promo codes to reduce item price
📌 Lower product price = lower CIF value = more chance to avoid tax.
⚠️ When You Can’t Avoid GST
In some situations, GST is unavoidable:
| Scenario | GST? |
|---|---|
| CIF > S$400 | ✅ Yes |
| Declared value underreported | ✅ Likely |
| Random customs inspection | ✅ Possible |
| Gift parcels > S$400 | ✅ Yes |
👉 Always declare your parcels truthfully on Buy&Ship to avoid penalties or delays.
💼 What If I Got Charged GST Anyway?
If your parcel is taxed:
- You’ll receive a notice from the courier
- Pay GST via COD or online before delivery
- In some cases, you may also pay handling/admin fees
💡 Note: These charges are not from Buy&Ship, but imposed by Singapore Customs or final-mile delivery partners.
💻 Sites That Might Auto-Charge GST (Beware!)
Some global retailers include GST during checkout for SG addresses. Watch out for:
- Amazon Global Store (SGD checkout)
- ASOS / Net-a-Porter / iHerb
- eBay Global Shipping Program
❗ If you want to avoid GST, ship to a Buy&Ship warehouse instead and control the declared value yourself.
📲 How Buy&Ship Helps You Save on GST
| Feature | Benefit |
|---|---|
| 10 global warehouses | Shop from US, UK, Japan, Korea & more |
| Separate shipping option | Split parcels to avoid GST |
| Transparent pricing | Easily estimate CIF and costs |
| Warehouse consolidation control | Choose what to combine or ship alone |
| Insurance & tracking | Protects your package every step |
✅ Buy&Ship users report saving hundreds of dollars in avoided GST and shipping fees annually.
✈️ Final Tip: Use Buy&Ship for Smarter Global Shopping
When used wisely, international shopping can be cheaper even with shipping costs. The key is:
- Plan your purchases
- Split where necessary
- Stay informed of CIF limits
- Use Buy&Ship tools to your advantage
📦 Ready to shop the world without worrying about hidden taxes?
👉 Sign up now at Buy&Ship Singapore and start saving today.