GST Rate Changes for 2023/2024
The Minister for Finance announced in Budget 2022 that the GST rate increase will be staggered over two steps: from 7% to 8% with effect from 1 Jan 2023; and from 8% to 9% with effect from 1 Jan 2024. We encourage you to read this rate change so that you know and understand the purposes for which of our services that will be impacted by the rate hike.
We may update this rate change page from time to time. Subject to your rights at law, you agree to be bound by the prevailing terms of this rate change as updated from time to time. We encourage you to check the latest version of this rate change regularly.
1. Overseas Company: Zero-Rated
2. Overseas Company with GST Registered in Singapore: Zero-Rated
3. Local Company & Person belonging in Singapore: Standard-Rated
|Contractual Customer||Direct Beneficiary||GST Treatment|
|Overseas Person||Overseas Person||Zero-Rated if services are supplied to and directly benefitting an overseas person who is outside Singapore at the time the services are performed.|
|GST registered person belonging in Singapore||Zero-Rated as services are supplied to overseas person and directly benefitting a GST-registered belonging in Singapore|
|Non-GST registed person belonging in Singapore||Standard Rated|
|Local Person||Standard Rated|
All Singaporean products and services: Standard-Rated
This rate change is governed by and shall be construed in accordance with the laws of Singapore. For more information about the GST rate change, please view the IRAS Circular for Travel Industry .
1. Will the GST rate change affect travel packages?
No, the GST rate change will not affect travel packages being offered.
2. Will the GST rate change affect the service fee on air ticket purchases?
Yes, the GST rate change will affect the service fee on air ticket purchases as this is now GST chargable if you are a local or non-GST registered person belonging in Singapore.
3. Will the GST rate change affect cruise packages?
No, the GST rate change will not affect cruise packages being offered if the cruise docks at one or more ports outside Singapore. Cruises around Singapore waters will be standard-rated.
4. Will the GST rate change affect hotel accommodations?
Yes and No. The GST rate change will not affect hotel bookings if the property is located outside Singapore. If the property is located within Singapore, Standard Rate (8%) applies.