Goods and Services Tax or GST is a broad-based consumption tax levied on the import of goods (collected by Singapore Customs), as well as nearly all supplies of goods and services in Singapore. If your billing/shipping address is in Singapore and you are purchasing services from our Singapore business (IECL SG Pte Ltd) 7% GST is applicable.
Change in GST rate in Singapore
Take note that the GST rate is increased from 7% to 8% ("new tax rate") with effect from 1 January 2023.
In the event an invoice has been issued to the client at the rate of 7% GST before 1 Jan 2023 and the payment is to be made after 1 Jan 2023 by the client for services to be delivered or performed after 1 Jan 2023, we will issue a credit note to cancel such invoice and issue a new invoice which will reflect the new tax rate. Kindly note that this GST adjustment by way of credit note is made pursuant to guidelines published by the Inland Revenue Authority of Singapore.
Where invoice has been issued to the client and payment received from client before 1 Jan 2023, the prevailing GST rate of 7% GST will sustain even where the services are performed after 1 Jan 2023.
For avoidance of doubt, take note that:
a) where an invoice has been issued for services that spans from before Dec 2022 and after 1 Jan 2023 at the rate of 7% GST, the client is encouraged to make full payment for such invoice before 1 Jan 2023. Should we not receive the full payment for such invoice before 1 Jan 2023, we are required to issue a credit note for the remaining payment to be made, or the remaining services to be performed, on/ after 1 Jan 2023 and issue a prorated invoice subject to new tax rate accordingly,
b) where the services are fully delivered or performed before 1 Jan 2023, the client is encouraged to make payment for such services before 1 Jan 2023, however pursuant to the transitional rules, invoices for such services will be subject to 7% GST.