On or about 23 Feb 2022, the Inland Revenue Authority of Singapore (IRAS) has updated its web page to transitional rules for GST rate change.
Supplies that span the change of GST rate
A supply spans the change of GST rate where one or two of the following events takes place wholly or partially on or after 1 Jan 2023:
- the issuance of invoice;
- the receipt of payment (or the making of payment in respect of a reverse charge supply);
- the delivery of goods or performance of services.
The following are examples of a supply that span the change of GST rate:
Invoice is issued before 1 Jan 2023
- If received full payment or have delivered all the goods or performed all the services before 1 Jan 2023, the entire value of the supply is subject to 7% GST.
- In all other scenarios, 8% GST will apply on the lower of:
- (a) The payment received on or after 1 Jan 2023; or
- (b) The value of goods delivered or services performed on or after 1 Jan 2023.
Invoice is issued on or after 1 Jan 2023
- If receive full payment before 1 Jan 2023, the supply is subject to 7% GST.
- If goods delivered or services performed a part or all of the goods or services before 1 Jan 2023, but do not receive full payment before 1 Jan 2023, can elect to charge 7% GST on the higher of:
- (a) The payment received before 1 Jan 2023; or
- (b) The value of goods delivered or services performed before 1 Jan 2023.
The remaining value of the supply is subject to GST at 8%.