Updated the new Singapore Goods & Services Tax Rate in 2023

2024 Singapore GST Rate Update

The Goods and Services Tax (GST) rate in Singapore has increased to 9% since 1st January 2024, applying to all eligible transactions made on or after this date. This change marks the final phase of a two-step increase, following the initial rise from 7% to 8% in 2023.

The GST adjustment underscores the government’s commitment to building a sustainable fiscal framework that supports the nation’s evolving needs, as the additional revenue generated is crucial for funding key areas such as healthcare, social services, infrastructure development, and so on.

Following the Singapore Budget 2022 announcement, the government announced changes to tax rates, including introducing goods and services taxes (GST). Its tax rate is expected to rise by 1-2% over the next few years.

In particular, 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 must 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 are using 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.