A Guide to the Singapore GST Rate Increase in 2024 

The Minister for Finance (MOF) announced in Budget 2022 that the Singapore GST rate will be increased from 8% to 9% starting from 1 Jan 2024. With this, vendors offering point-of-sale (POS) systems, cash registers, and accounting software need to assist their clients in preparing for the upcoming Singapore GST rate increase.  

Once you implement the revised rate, it is important that you charge the correct GST amounts. The MOF encourages businesses that pay taxes to plan ahead and make necessary system adjustments in order to implement the rate increase smoothly by 1 Jan 2024. 

With the Singapore GST rate increase, it is important to act on the following changes:

• Ensuring to update the tax rate tables in the accounting systems for both accounts receivable and accounts payable modules. 
• Adjusting the system settings to accurately reflect the new GST rate in sales/purchase orders and invoices. 
• Reviewing and revising any automated systems or reports that calculate GST, including spreadsheets used for calculating input tax credits. 
• Making necessary changes to POS systems or cash registers to apply the new GST rate. 

By following these best practices below, businesses can minimize errors and ensure a smooth transition during the implementation of the new GST rate:

COMMON ERRORS	BEST PRACTICES
Charge GST at 9% before 1 Jan 2024	Properly configure your systems, such as accounting and invoicing systems, retail management systems, cash registers, and POS billing receipting systems. They need to accommodate the 9% GST rate, effective from 1 Jan 2024 and not prior to that date.
Charge or display GST at 8% from 1 Jan 2024	Check and verify all receipts, invoices, and price displays across all sales channels. These include mobile apps, self-ordering kiosks, physical and online websites). They must be updated to accurately calculate and display GST at the rate of 9% starting from 1 Jan 2024.   In the event that you choose to absorb the additional 1% GST, ensure that the GST is still calculated. Display at 9% on all receipts, invoices, and price displays that mention the GST rate or GST amount .
The GST amount is calculated accurately, but there is an incorrect reflection of the GST rate on the receipts/invoices issued	When testing your systems and processes, do conduct checks to ensure that the accurate GST rate is reflected. This is specifically when you issue receipts and invoices both before and after the implementation of the 9% GST.
No assistance available for system issues arising from last-minute GST rate changes.	To ensure a smooth transition, plan in advance and allocate sufficient time for comprehensive testing of your systems and processes. This will help you identify any potential system issues early on, allowing for prompt rectification before 1 Jan 2024.   If you are responsible for implementing the changes, be familiar with the necessary steps required to update the GST rate. Alternatively, if you require assistance from your software vendors, reach out to them well in advance to secure their support.

You can consult the “2024 GST Rate Change: A Guide for GST-registered Businesses.” for more details. This comprehensive e-tax guide can be downloaded from http://www.iras.gov.sg. 

To assist you in preparing for the rate change, please refer to the checklist available on the IRAS website. Additionally, for more resources related to the rate change, visit the IRAS webpage specifically dedicated to “Preparing for GST Rate Change.”  

For further assistance on GST matters, Aura Partners Singapore would be happy to help you, contact us.