GST Changes
GST rate changes?
GST changes have been on the news for some time. In Budget 2022, the Minister for Finance announced that the GST rate will be increased from 7% to 8% with effect from 1 January 2023 and from 8% to 9% with effect from 1 January 2024. From 1 Jan 2023, GST is also payable on goods valued at S$400 or below. This applies to goods which are imported into Singapore via air or post and purchased from GST registered suppliers. GST is also applicable to services provided by GST registered businesses.
In short, all supplies of imported goods and services, whether digital or non-digital, which can be supplied and received remotely will be subject to GST. It does not matter whether the GST registered businesses are located locally or overseas.
Changes to GST relief?
Previously, we shared about the GST relief for items with value below S$400. From 1 Jan 2023, GST will be applied to these items as well. With the GST changes, it helps to ensure that GST treatment for all goods consumed in Singapore is the same.
Effects for GST registered businesses?
Businesses should review their contracts to determine who should bear the cost of the GST when the rate increases. Moreover, businesses also check that required changes are made to their systems or processes to be prepared for the rate increases. Businesses have to also ensure that they are properly registered and equipped to handle the GST changes to all goods and services consumed in Singapore. With the changes in GST for all imported goods and services, the GST treatment for all goods and services consumed in Singapore is the same. With the increasing trend towards shopping online, this helps to ensure that there is little or minimal differences in the prices of same or similar goods and services.
AD&K Logistics is GST registered since our incorporation in Singapore. Do feel free to contact us for your imports to Singapore.