- The Inland Revenue Authority of Singapore has published updated guidance on preparing for the GST rate change.
- Singapore has increased its GST rate from 7% to 8% starting from 1 January 2023, and it will further increase to 9% from 1 January 2024.
- The guidance clarifies that GST should be charged at the prevailing rate at the time of supply.
- If an invoice is issued or a payment is received in 2023, GST should be charged at 8%. If an invoice is issued and payment is received on or after 1 January 2024, GST should be charged at 9%, unless an election was made to charge GST at 8% under the rate change transitional rules.
- When required to charge GST at 9% from 1 January 2024, it must be accounted for at that rate in the GST return, regardless of whether the payment has been collected.
- The guidance also highlights two errors to avoid: charging GST at 9% before 1 January 2024 and charging or displaying GST at 8% on or after that date.
- Taxpayers should ensure their systems are configured correctly and that receipts/invoices and price displays are updated to reflect the new rate.
Source Orbitax
Source: iras.gov.sg
