Following the announcement of the Singapore Budget 2022 earlier this year, the government announced changes to tax rates, including the introduction of goods and services taxes (GST). Its tax rate is expected to rise by 1-2% over the next few years.
And time flies; there are only 18 days until the new year, which means the GST rate will increase from 7% to 8% on January 1, 2023. This modification will affect all Singapore businesses that file GST. This rate increase awaits to impact all Singapore consumers and businesses, as prices are expected to rise due to the implementation of this new tax rate. All GST-registered companies will need to update their pricing and accounting systems to reflect the new rate.
On that note, this change will have an impact on you in some ways when doing business in Singapore. Make certain that you are using the new GST rate in any accounting platform, particularly in your accounting system. In case, you use Xero, here is some useful information to keep in your back pocket.
Please keep updated with BBCIncorp in the very first of next year – Singapore Budget 2023 – for the final news of 2022.
Disclaimer: While BBCIncorp strives to make the information on this website as timely and accurate as possible, the information itself is for reference purposes only. You should not substitute the information provided in this article for competent legal advice. Feel free to contact BBCIncorp’s customer services for advice on your specific cases.
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