Early preparation for a smooth transition to the new GST rate can save you time and energy. To reflect the new rate, you may need to modify your point-of-sale, invoicing, accounting, and other systems, as well as your price displays.
The GST rate you charge on a supply should generally be the rate at the time of the supply.
Therefore, if you invoice or receive payment for a supply before January 1 2023, you should charge GST at the 7% rate.
Conversely, suppose you invoice or receive payment for a supply on or after 1 January. In that case, you should charge GST at the new rate unless you have elected to charge GST at 7% under the rate change transitional rules subject to the conditions for the election.
The GST rate of 8% cannot be applied to invoices or payments issued or received before 1 January 2023.
Please refer to the Checklist for GST rate change preparation (PDF, 99KB) for guidance on the changes that may be required to your systems and business processes to apply the new rate.
You are encouraged to make the necessary changes early to deal with the change in GST rate, including training your staff.
You must include GST in all advertised prices (e.g. on price tags, price lists, advertisements, brochures and websites). This way, the public knows the final price they will have to pay upfront. Prices quoted verbally or in writing must always be GST-inclusive.
As of 2023, all prices must include GST at 8%.
As of 1 January 2023, all prices displayed must include the 8% GST rate.
If you are unable to change your price displays overnight, you may display two prices:
Prices inclusive of GST at 7%, applicable before January 1 2023; and
Prices inclusive of GST at 8%, applicable with effect from January 1 2023.
Hotels and food and beverage establishments are exempt from displaying GST-inclusive prices for goods and services subject to service charge. They must, however, prominently display a statement informing customers that the displayed prices are subject to GST and service charges. You can find more information at Displaying and Quoting Prices.
To efficiently implement the new GST rate as of January 1 2023 you may have to modify PoS, invoicing, and accounting to apply the transitional rules. For assistance on your systems, please contact your vendors before the start of 1 January 2023.
Digitalising your business processes with accounting software and retail management system (e.g., Point-of-Sale Solution) can help you to comply with record-keeping and other tax obligations. For the list of accounting software that meet IRAS’ technical requirements, please refer to IRAS Accounting Software Register.
Companies that want to implement an accounting or retail management system can apply for the Productivity Solutions Grant. For more information on eligibility conditions, a list of supportable pre-approved solutions and how to apply for the grant, please refer to the GoBusiness webpage.
IRAS will be conducting live webinar sessions (via Zoom) for GST-registered businesses from April 2022 to December 2022. The webinars are intended for GST-registered businesses that may still require assistance after reading through the e-Tax Guide on 2023 GST Rate Change (PDF, 663KB) and the resources on IRAS’ webpage on GST.
How to register
Registration is first come, first served. To allow more businesses to benefit from the webinar, companies should limit the number of attendees to no more than two employees.
Interested candidates should register at IRAS website. Upon successful registration, you will receive an email confirmation.
|21 Jul 2022
|2pm to 4pm
|18 August 2022
|2pm to 4pm
|8 Sep 2022
|2pm to 4pm
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