Singapore: E-tax guide for businesses on upcoming 2024 GST rate adjustment
The Inland Revenue Authority of Singapore (IRAS) has recently issued an informative e-tax guide specifically tailored for businesses registered under the Goods and Services Tax (GST) system. The focus of this comprehensive guide is on the anticipated GST rate change scheduled for 2024. The announcement made in Budget 2022 highlighted the incremental increase of the GST rate from 8% to 9%, set to take effect on January 1, 2024.
The e-tax guide covers a wide range of essential topics, including:
- Price display requirements, with the exception of hotels and food and beverage establishments that apply service charges.
- GST transitional rules designed to ensure a seamless transition for businesses.
- The provision of a 90-day grace period for issuing credit notes or canceling and reissuing invoices in cases of overcharged GST, without granting any extensions.
- Considerations related to customer exchanges and the associated GST implications.
- Obligations and guidelines concerning reverse charge supplies.
- Transitional rules applicable to imported digital services, non-digital services, and low-value goods falling under the Overseas Vendor Registration (OVR) regime.
- Treatment of deduction and credit card payments received through General Interbank Recurring Order (GIRO) in January 2024, treating them as payments received prior to January 1, 2024.
- Illustrative examples that demonstrate the impact of the GST rate change and offer valuable guidance on preparatory measures for businesses.
The release of this e-tax guide by the IRAS aims to provide GST-registered businesses with a comprehensive understanding of the forthcoming GST rate adjustments and assist them in ensuring compliance with the upcoming changes and requirements.
Source: iras.gov.sg
