GST rate increase?
During Budget Day Speech 2022, the Government announced that the Goods and Services Tax (GST) rate will increase from 7% to 8% on 1 Jan 2023. After which, GST rate will increase from 8% to 9% with effect from 1 January 2024 if there is no further changes. All imported goods and goods released for local consumption after 31 Dec 2022 will attract GST at the new rate of 8%. This includes goods valued at S$400 or below as well as goods imported into Singapore via air or post and purchased from GST registered suppliers. In short, as long as the businesses are GST registered, all supplies of local or imported goods and services will be subject to GST.
Effects for GST registered businesses?
Businesses are advised to prepare as soon as possible for the upcoming GST Increase. Do check that required changes are made to the existing systems or processes to prepare for the rate increases. Ensure that any pricing schedules made available to customers, be it online or offline, are updated accordingly. Should there be any returns or refunds during the period of December or January, do ensure that the relevant applicable GST is applied accordingly. Businesses have to also make sure that any document prepared in advance for their import shipment reflects the correct GST. Relevant GST short payment or refunds have to be submitted accordingly for any shortfall or over payment in GST payment.
There is ample time and notice given for businesses to prepare themselves for GST Increase adequately. Changes or adaptions for the GST increase will have been implemented in time. Do ensure that the quarterly filing of GST return reflects the correct GST.
AD&K Logistics is GST registered since our incorporation in Singapore. Do feel free to contact us for your imports to Singapore.