As planned, the Goods and Services Tax (GST) rate will be increased from 8% to 9% on 1 January 2024. From an operational standpoint, businesses can capitalise on the preparatory work undertaken and the lessons learned from the recent rate increase from 7% to 8% on 1 January 2023. An example is the early identification of transactions that may be impacted by the transitional time of supply rules and initiating client conversations to communicate the applicable GST rate of 8% or 9% on transactions.
The work processes previously implemented for this year’s rate increase should also be reviewed and refined to achieve greater efficiency in the implementation of the next GST rate increase. Businesses should note that the Inland Revenue Authority of Singapore (IRAS) is expected to issue additional guidance on the next rate hike by April 2023.
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