On or about 18 Feb 2022, the Inland Revenue Authority of Singapore (IRAS) has published the third edition of the e-Tax Guide on 2023 GST Rate Change – A Guide for GST-registered Businesses.
The Minister for Finance announced in Budget 2022 that the GST rate will be increased in 2 steps:
- from 7% to 8% with effect from 1 Jan 2023; and
- from 8% to 9% with effect from 1 Jan 2024.
This e-Tax Guide explains the general transitional rules applicable to transactions spanning the first rate change. It covers the time of supply rules, the GST rates chargeable and provides information on the issuing of invoices, credit notes and other requirements, so as to prepare GST-registered businesses for the first rate change when the GST rate is increased from 7% to 8% with effect from 1 Jan 2023,
The same transitional rules will apply to transactions spanning the second rate change when the GST rate is increased from 8% to 9% with effect from 1 Jan 2024.
IRAS will publish a separate e-Tax Guide to prepare businesses for the second rate change by Apr 2023