All GST-registered businesses that sell or buy GST-taxable goods or services will be affected. After 1 Jan 2023, you must charge 8% GST on standard-rated goods and services. On or after 1 Jan 2023, you must account for 8% GST on invoices and payments for supplies.
How to prepare for 8% GST?
Transition smoothly to the new GST rate to avoid being non-compliant. Use IRAS’s checklist to see if your business is ready for the rate change.
You must do 3 things:
- Update your systems to incorporate the new GST rate.
Prepare early for the 1 Jan 2023 GST rate change – Accounting and invoicing systems, retail management systems, and cash register and POS billing systems are examples of systems to get ready.
System changes require time. Given enough time, accounting software vendors can help you implement GST rate changes. Please ask your IT team or software vendors how they can help you transition smoothly.
Start now to avoid invoicing, price display, and GST penalties.
- Prepare your price displays to reflect the new GST rate
Prices must include GST. Price tags, price lists, ads, brochures, and websites display prices. Written or verbal prices must include GST so the public knows the final price they have to pay (upfront). From 1 Jan 2023, 12 a.m., prices should include 8% GST.
- Understand the GST rate change transitional rules and apply the correct GST rate for sales transactions and reverse charge supplies spanning 1 Jan 2023
The time of supply rules determine when a supply occurs for GST purposes. The time-of-supply rules should determine the GST rate:
Before 1 Jan 2023, you must charge 7% GST.
After 1 Jan 2023, the 8% GST rate will apply.
To prepare for the GST rate change, visit IRAS webpage at https://www.iras.gov.sg/taxes/goods-services-tax-(gst)/gst-rate-change/gst-rate-change-for-business/resources-for-gst-rate-change