Thank you for your support of ACP over the years. The Minister for Finance announced during Budget 2022 the GST rate will be increased from: –
(i) 7% to 8% with effect from 1st Jan 2023; and
(ii) 8% to 9% with effect from 1st Jan 2024.
How does this GST rate change impact our customers?
Purchases of goods (delivered) and services (rendered) before 1st January 2023 will be subjected to GST at 7%, and purchases on or after 1st January 2023 will be subjected to GST at 8%. For supply which straddles across the GST rate change, IRAS had also provided transitional rules for rate change determined by
i. issuance of invoice,
ii. receipt of payment and
iii. delivery of goods or performance of services.
The key determinants of the applicable GST rate are the payment receipt date and delivery of goods /performance of services. Customers will continue to be taxed 7% GST when full payment is received by 31st December 2022. In all other cases, the value of the supply must be partially or fully adjusted to account for the 8% GST.
For more information, you may visit https://www.iras.gov.sg/.
If you require any further clarification, please contact us at +65 6227 7996 or firstname.lastname@example.org
ACP Finance Team