One Singaporean couple was recently stopped at Woodlands Checkpoint while re-entering Singapore on April 20, 2019 -- because they might not have declared the correct value of their purchases and might be liable to pay taxes.

Tightened GST import relief

Lianhe Wanbao reported the purpose for stopping the couple was for customs officers to inspect the items they bought from Johor Bahru, Malaysia.

This measure was apparently carried out to enforce the new tightened Goods and Services Tax import relief for travellers arriving in Singapore, which started from Feb. 19, 2019 at 12am.

Taken to one side

The wife, a 30-year-old civil servant, who was identified only as Chen, said they were stopped by an officer for a random screening after they had cleared security checks.

They were taken to one side when they were about to leave the checkpoint.

The officer asked for their passports and instructed them to wait in a small room, which had six other people inside, according to Chen.

Chen said another security officer then requested to check their purchases.

She said: "We were told that we had stayed less than 48 hours outside Singapore and would have to do tax declarations if the value of our purchases exceeded S$100."

New pairs of sneakers

Her husband was carrying two pairs of newly purchased sneakers in a shopping bag.

But he had kept the receipt showing that the price of the shoes cost about RM400 (S$130).

As there were two of them, the couple did not exceed the S$100 tax relief threshold meant for each individual.

Chen said: "The security officer then agreed we did not have to declare our purchases and did not have to pay a fine, so he allowed us to leave the customs."

Shaken

The incident left the couple shaken even though it took only 15 minutes.

The couple had entered Malaysia at around 10am and returned to Singapore at 8pm on the same day via Woodlands Checkpoint.

The couple were unaware that the tax relief threshold had been reduced in February 2019.

The few others they saw who were also called into the small room also appeared to be confused, Chen said.

Value of goods granted GST relief

Currently, travellers who spend less than 48 hours outside Singapore will get GST relief for the first S$100 of the value of goods.

It used to be S$150.

According to the Inland Revenue Authority of Singapore (IRAS), GST is applicable on the value of goods in excess of the respective relief limits.

Travellers who spend at least 48 hours outside Singapore will get GST relief for the first S$500 of the value of goods.

It used to be S$600.

Chen hopes that by sharing her experience, Singaporeans will know of the changes in the tax relief threshold.

To mitigate any disputes arising from proving the value of goods brought into Singapore, travellers should keep their receipts so they can declare their overseas purchases when needed.

Previously, those bringing in curtains into Singapore have been warned.

Previously:

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