Singapore Set to Increase GST Rate In 2023 and 2024

November 29, 2022

Through the 2022 Budget Law, the Singapore Ministry of Finance has announced significant changes in relation to the current GST mechanism. 

Timeline 

The GST rate will be increased over a two year timeframe. The first change will be effective January 1, 2023, with the following change effective January 1, 2024. 

The new rates

An increase from 7% to 8% will take effect beginning January 1, 2023.

Another increase from 8% to 9% will take effect beginning January 1, 2024. 

The standard GST rate change will cover both the supply of goods and services. 

Businesses operating in Singapore should adjust their accounting/billing systems accordingly to remain compliant with the significant changes in relation to indirect tax obligations. 

Vendors should prepare their invoicing systems following the changes announced by the Ministry of Finance as a necessary step to be able to calculate tax, issue GST invoices, and file tax returns accordingly. 

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Aleksandar Delińá
Tax Researcher

Aleksandar is a Tax Research Analyst at Fonoa, and previously worked as a Business Analyst in New Black BV’s Compliance department. Based in Novi Sad in the Republic of Serbia, Aleksander joined Fonoa for the opportunity to work with a team of highly skilled TaxTech experts and make a real impact on the industry. Fun fact: If he could open any kind of business, it would be a pizzeria that serves delicious pies using only the freshest ingredients imported directly from Italy. Mangia!