Goods and Services Tax (GST) – Get Started on your GST Rate Change Preparations !April 1, 2022
In Budget 2022, the Minister for Finance announced that the GST rate will be increased in 2-steps from 7% to 8% on 1 Jan 2023 and from 8% to 9% on 1 Jan 2024. Please find enclosed a mailer here on what businesses need to know and do to prepare for the first rate change on 1 Jan 2023. Please refer to the e-Tax Guide ‘2023 GST Rate Change: A Guide for ‘2023 GST Rate Change: A Guide for GST-registered Businesses‘ and webpage ‘GST Rate Change for Business‘ for:
- more information on the transitional rules.
- other important requirements.
Please also note under paragraphs 12.9 to 12.12 of the e-Tax Guide the listed payment modes by customer. If there should be any other forms of payment mode not mentioned in the e-Tax Guide, and other feedback or issues pertaining to the GST Rate Change you wish to raise to IRAS, please email Anwar Roslan at email@example.com by 15 April 2022 for SRA’s consolidated response to IRAS.
Funding Support for Pre-approved Solutions
You may need to modify your point-of-sale, invoicing, accounting and other systems to apply the transitional rules and implement the new GST rate. For assistance on your systems, please contact your vendors early. Accounting software and retail management system (e.g., Point-of-Sale Solution) can help you to digitalise your business processes, comply with record-keeping and other tax obligations. For the list of accounting software that meet IRAS’ technical requirements, please refer to IRAS Accounting Software Register.
Businesses that are interested to adopt an accounting or retail management system may apply for the Productivity Solutions Grant. For more information on eligibility conditions, list of supportable pre-approved solutions and how to apply for the grant, please refer to the GoBusiness webpage here.
We would strongly encourage members to start your preparations early to ensure a smooth transition. Meanwhile, IRAS will provide more details and updates to help businesses prepare for the second rate change by April 2023.