- Around 8,000 newly registered businesses in Singapore will implement a change in the goods and services tax (GST) rate for the first time on Jan 1.
- The GST rate was raised from 7% to 8% on Jan 1, and will increase to 9% on Jan 1, 2024.
- More than 100,000 businesses smoothly transitioned to the new rate this year, with only around 60 charging incorrect GST rates.
- Businesses need to ensure that payments received in 2023 are subject to the prevailing GST rate of 8%.
- Businesses should allow sufficient lead time for their IT teams or software vendors to incorporate the new 9% rate in their systems.
- Price displays must be inclusive of the 9% GST rate, except for food and beverage and hotel establishments that impose a service charge.
- Businesses should update receipts, invoices, and price displays to reflect the new 9% GST rate from Jan 1, 2024.
- There are rules for determining whether to charge GST at 8% or 9% if transactions span the date of the rate change.
- Businesses should be transparent in communicating reasons for price increases to consumers.
- The Committee Against Profiteering will investigate cases of unjustified price increases using the GST increase as an excuse.
Source: thestar.com.my
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
