Singapore GST rate change on 1st January 2023 from 7% to 8%. Are you ready?

The Singapore Government has already announced the increase in GST rates from 7 to 8% effective 1 January 2023 and from 8 to 9% on Jan 1 2024. With less than 7 months to go, all businesses need to start preparing for this change. Besides understanding the nature of the changes, companies need to ensure that their accounting teams are properly trained on the various scenarios that may impact their business. Accounting systems will need to be changed to reflect the new rates. With any change of rates, there will be an impact of transactions for the transition from one rate to another. There are some transactions that are continuous and are supplied over a period of time that straddle on either side of the date of change? Are you prepared to ensure a smooth transition and to ensure your GST returns are filed accurately?

The Inland Revenue Authority of Singapore has published guidance on some scenarios. The information below is excerpted from various sources from IRAS in a summarized format for the most common scenarios. There are additional rules for specific use cases that have not been included in the summary below. We would be happy to provide a response for specific queries on GST.


Time of supply rulesearlier of when invoice is issued or when payment is received. This is the default tax treatment.

Not allowed to charge 8% before 1 Jan 2023 for invoices issued or payments received

Price displays must include new GST inclusive rates from 1 Jan 2023. If not enough time to change displays overnight, then two prices can be shown before 1st Jan 2023 one with 7% and one with 8%


Transitional Rules – if a GST rate change straddles between one or more of the following events –

(1) issuance of invoice

(2) receipt of payment (or making of payment in the case of reverse charge supply

(3) delivery of goods / performance of services,

then refer to the following table for the correct GST treatment.


GST Rate and Tax Treatment.12 Dec 202220th Dec 20221 Jan 20234th Jan 20236th Jan 202310th Jan 2023
7%Full Payment Rate ChangeInvoice IssuedGoods Delivered 
Time of supply rules à8%  but 7% Election permitted since goods delivered before rate changeGoods Delivered Rate ChangeInvoice IssuedFull Payment 
8%  Rate ChangeInvoice IssuedServices PerformedFull Payment
Time of supply rules à 8% (invoice issued) But $300 election permitted @ 7% and $700@ 8%Part Goods delivered $300 Rate ChangeInvoice Issued $1000Full Payment $1000Part goods delivered $700
7% on $300 received in 2002 & 8$ of $700 received in 2023 But 7% Election permitted for full $1000 (fully delivered in 2022)Part Payment $300Goods delivered $1000Rate ChangePart Payment $700Invoice issued $1000 
7% on $300 and 8% on $700 But No election permitted as goods fully delivered in 2023 $300 Part PaymentRate ChangeInvoice issued $1000Part Payment $700Goods delivered $1000
7% on $200 received in 2022 & 8% on $800 received in 2023 OR Election permitted for 7% on $400 delivered in 2022 and 8% on $600 delivered in 2023.Part Payment $200Part goods delivered $400Rate ChangeInvoice issued $1000Part Payment $800Part Goods Delivered $600
7% on $600 received in 2022 & 8% on $400 received in 2023. No election necessary as Payment > Goods deliveredPart Payment $600Part goods delivered $200Rate ChangeInvoice issued $1000Part payment $400Part goods delivered $800
7%Invoice issuedFull paymentRate changeServices performed  
7%Invoice issuedGoods deliveredRate changeFull payment received  
7% Invoice issuedRate ChangeFull payment receivedServices performed 
7% on $1000 (tax invoice issued 2022) AND Issue credit note for $856 (800 +7% $56) +New tax invoice – $864 (800 + 8% $64) because services were performed in 2023Part services performed $200Tax Invoice issued $1000Rate ChangePayment Received $1000Part Services performed $800 
7% (goods fully delivered in 2022)Tax invoice issued Part PaymentGoods Fully DeliveredRate ChangePart Payment  
7% on $1000 invoice issued in 2022 AND Issue credit note for $749 (700 +7% $49) 2023New tax invoice for $756 (700 + 8%) 2023Tax invoice issued $1000Part Payment $300Rate ChangeServices Performed $1000Part Payment $700 
7% on $1000 invoice issued in 2022 AND Issue credit note for $642 (600 +7% $42) 2023New tax invoice for $648 (600 + 8%) 2023Tax invoice issued $1000Part goods delivered $400 & Part Payment $200Rate ChangePart Payment $800Part goods delivered $600 
  • GST election not applicable for business assets sold in satisfaction of debt.
  • Election can only be performed by GST registered supplier (for self billing obtain consent from supplier in writing for 7%)
  • Maintain proper documentary evidence. Comptroller approval not required for election
  • If tax invoice @ 8% subsequently elected to charge 7% – issue credit note for the difference.
  • Continuous Supplies e.g. license, tenancy and lease, supply of utilities, construction services, subscriptions for telecom, internet, video / music streaming – earlier of invoice issued or payment received with transitional rules applicable in the scenario where services were performed prior to rate change.

Ezee Pte. Ltd. provides a wide range of services to Startups, Small and Medium Enterprises (SME’s) and Corporates including Accounting, Corporate Tax, Corporate Secretarial, Financial Advisory and CFO on Demand.