On or about 22 Feb 2022, the Inland Revenue Authority of Singapore (IRAS) has updated its web page to GST Rate Change for Businesses.
In Budget 2022, the Minister for Finance announced that the GST rate will be increased from:
- 7% to 8% with effect from 1 Jan 2023; and
- 8% to 9% with effect from 1 Jan 2024.
The rate change affects any GST-registered business that sells or purchases goods or services that are subject to the standard rate of GST.
Effective from 1 Jan 2023 – First rate change from 7% to 8%
Any standard-rated supplies of goods or services make on or after 1 Jan 2023, a GST-registered business must charge GST at 8%.
A GST-registered business that subject to reverse charge (“RC business”), it must account for GST at 8% on the services procure from overseas suppliers (“imported services”) on or after 1 Jan 2023.
There are however special transitional rules for supplies that span the change of rate. This may affect the GST rate chargeable on the supply.
You may refer to the e-Tax Guide 2023 GST Rate Change: A Guide for GST-registered Businesses (PDF, 663KB) for more information on rate change.
Effective from 1 Jan 2024 – second rate change from 8% to 9%
The same transitional rules for supplies that span the change of rate will apply when the GST rate is increased from 8% to 9% with effect from 1 Jan 2024. IRAS will provide more details and updates to prepare businesses for the second rate change by Apr 2023.