Notification of Goods and Services Tax (GST) Rate Change

In Budget 2022, the Minister for Finance announced that the GST rate will be increased from:

(i) 7% to 8% with effect from 1 Jan 2023; and

(ii) 8% to 9% with effect from 1 Jan 2024.

IRAS has provided an e-tax guide that explains the general transitional rules applicable to transactions spanning the rate change.

Transitional rules apply to supplies that span the rate change date which may affect the GST rate chargeable. A supply spans a GST rate change when one or more of the following events take place wholly or partially on or after 1 Jan 2023: 

(i) the issuance of invoice;
(ii) website display price;
(iii) catalogue price;
(iv) showroom price tag;
(vi) product price list & promotion brochures.

Following this, we wish to inform you that Beauty Garage Singapore will be charging Goods and Services Tax (GST) at the prevailing rate at the time of supply as per below:

If full payment is received or the supply is fully performed before 1 Jan 2023, the invoice is subject to 7% GST.

In all other circumstances, part or full value of the supply will have to be adjusted to 8% GST. A credit note will be issued for the initial invoice charged at 7% and a new tax invoice will be issued for applicable revised GST rate based on the transition rules from IRAS. 

If you require further clarification, kindly contact us for any assistance you may need. 

 

Best Regards,

 

Ryoichi Tanaka
Managing Director
Beauty Garage Singapore