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