Hello all Singapore GST- Registered businesses!
Are you ready for the second stage of GST rate change from 8% to 9% on 1 January 2024 as part of the Budget 2022 announcements?
As the date draws near, we have identified some important points to take note which may aid you in the transition.
Update your Systems, Software and Price Displays
Get ready to update your accounting software and point-of-sale (POS) systems. It is essential that the new rates are applied and reflected correctly on 1 January 2024.
All price displays to the public in the stores (online and offline) must be final and inclusive of GST. If you are unable to make the switch on time, you are allowed to display two prices, clearly indicating that first price inclusive of GST at 8% is applicable before 1 January 2024 and the second price inclusive of GST at 9% applicable on and after 1 January 2024.
Never charge GST at 9% before 1 January 2024.
Applying the correct GST rate under different scenarios
Although the GST rate of 9% will be taking effect, there are certain instances where GST transitional rules may apply. This happens when your supply spans the GST rate change from 8% to 9%, and factors of consideration includes dates of issuance of your invoice, receipt of payment and when the goods are delivered or services are performed.
For illustrations on various scenarios, please refer to this IRAS guide.
Our advice?
Start preparations early, and go digital!
If you are still issuing invoices manually using Excel, it's time to switch to an online accounting software such as Xero, which has updates available to manage the new GST rate change. This will save you much time in invoicing and manual calculations.
Contact us and find out more!