GST rate change for consumers

On 14 Dec 2023, you purchase $500 worth of goods to be delivered on 10 Jan 2024. You receive a tax invoice on 14 Dec 2023 and part payment of $200 is received by the supplier on the same day. The remaining payment of $300 will be received by the supplier in 2024.

GST will be chargeable at 8% on the part payment of $200 received by the supplier in 2023 and at 9% on the remaining payment of $300 received by the supplier in 2024.

You receive a tax invoice on 21 Dec 2023 for cleaning services provided to you on 20 Dec 2023. Payment is received by the cleaning service provider on 14 Jan 2024 when the prevailing GST rate is 9%. 

GST will be chargeable at 8% since you received both the invoice and the services in 2023.

You receive a tax invoice on 10 Dec 2023 with 8% GST charged for the cleaning services that will be provided on 20 Dec 2023 and 20 Jan 2024. Payment is received by the cleaning service provider on 20 Jan 2024. 

GST is chargeable at 8% on the cleaning services received in 2023 and 9% on the cleaning services received on/after 1 Jan 2024.  The supplier will issue you a credit note to adjust the GST charged at 8% on the value of cleaning services received on 20 Jan 2024.  A new tax invoice will be issued to you to charge GST at 9% on the value of cleaning service received on 20 Jan 2024.

GST will be chargeable at 8% if full payment is made and received by the supplier in 2023.

1. Yes, GST will be chargeable at 8% if you make payment for the invoice before 1 Jan 2024. However, if payment is made on or after 1 Jan 2024, 9% GST will be applicable for the services for the period from Jan to Feb 2024.
2. For GST purposes, a payment is considered received by the supplier only if it is received in respect of a specific supply and accepted or agreed as such by the customer and supplier. Voluntary payments that are made by you in excess of what is required by the supplier is not regarded as payments received by the supplier. Generally, a supplier would treat the excess payment as a credit balance in your account to be used to offset future supply of services, the value of which will be determined at the point when the invoice is issued.  In this case, for the maintenance services from Mar 2024 to Nov 2024, GST will be chargeable at 9% for the supply of services invoiced in 2024.

As the deposit for the wedding banquet is paid and received by the hotel before 1 Jan 2024, GST will be chargeable at 8%.

For the remaining amount payable for the banquet, GST will be chargeable at 9%.

GST will be reflected at 8% on the tax invoice issued to you on 15 Dec 2023. As payment is received by the cleaning service company after 1 Jan 2024, the company will adjust the GST chargeable to 9% for the part of the services performed on or after 1 Jan 2024.

As the value of services performed on or after 1 Jan 2024 is $800, the supplier will issue:

• a credit note for $864 ($800 plus 8% GST of $64); and
• a new tax invoice for $872 ($800 plus 9% GST of $72).

GST remains chargeable at 8% on the value of services performed before 1 Jan 2024 (i.e. $200).

If you decide to make the full payment of $1,000 and the cleaning service company receives the payment before 1 Jan 2024, GST is chargeable at 8% on the entire service.

GST will be chargeable at 8% on the tax invoice issued to you on 1 Nov 2023. However, as a part of the payment is received by the contractor and a part of the services is performed on or after 1 Jan 2024, the contractor will need to adjust the GST chargeable from 8% to 9% on the lower of:

• the part payment received on or after 1 Jan 2024; or
• the value of the renovation services performed on or after 1 Jan 2024.

The value of the renovation services performed on or after 1 Jan 2024 is $80,000 and the payment received by the contractor on or after 1 Jan 2024 is $60,000.  The lower of the 2 values which is $60,000 will be subject to 9% GST.  The payment of $40,000 (deposit of $10,000 and progressive payment of $30,000) received by the contractor in 2023 will continue to be subject to 8% GST.

The contractor will issue:

• a credit note for $64,800 ($60,000 plus 8% GST of $4,800); and
• a new tax invoice for $65,400 ($60,000 plus 9% GST of $5,400).
  

If the value of the imported goods including insurance and freight (CIF value) by air or post is $400 or less, no import GST is collected by Singapore Customs as there is import relief for such goods.  However, from 1 Jan 2023 onwards, non-GST registered persons, including end consumers will need to pay GST if they purchase goods valued at $400 and below, which are imported via air or post, from a GST-registered vendor registered under the OVR regime.

If the value of the goods including insurance and freight (CIF value) by air or post exceeds $400, import GST of 9% is payable since the goods are imported on/after 1 Jan 2024. If your freight forwarder had collected import GST in advance from you at 8%, they may collect an additional 1% GST from you. 

Please refer to GST on Imported Low-Value Goods for more information.

GST-registered suppliers should only charge 9% GST on the sale of Low-Value Goods to consumers in Singapore from 1 Jan 2024 SG time.  As the sale of headset is before 1 Jan 2024 SG time, it will be subject to 8% GST.

If the supplier has charged 9% GST on the sale of Low-Value Goods to you before 1 Jan 2024 SG time, you will have to seek a refund from the supplier.  

GST is charged at 8% on payment made before 1 Jan 2024. You will pay 8% GST on the first instalment payment before 1 Jan 2024, and 8% on the subsequent instalment payments on/after 1 Jan 2024. However, if the television is delivered to you before 1 Jan 2024, you will pay 8% GST on all the subsequent instalment payments.