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.
What is GST?
Goods and Services Tax (GST) is a consumption tax levied on nearly all supplies of goods and services in Singapore. The current GST rate is 7%. A GST-registered business is required to charge and account for GST at 7%.
Who is required to register for GST?
- Required: businesses with a taxable turnover exceeding $1 million.
- Voluntary: businesses with a taxable turnover less than $1 million.
Voluntary registrants should remain GST-registered for at least 2 years, and all GST-registered businesses are required to keep all business and accounting records for at least 5 years.
Setup GST
After you successfully registered GST, you will receive the GST registration number for your business, which should be printed on invoices, credit notes and receipts. You can set up your GST information and price displaying, and track the tax amount on iCHEF backend.
Backend Settings
- Go to Payment Settings > GST Settings
- Select [GST registration status] as [GST registered]
- Fill out basic information
- Select the way your price displayed
- Click [Save] to complete. The prefix alphabets will be generated automatically.
Price Displayed Settings
According to IRAS, GST-registered businesses must show GST-inclusive prices on all price displays to the public. Except for F&B establishments imposing service charge.
Therefore, when you have enabled Service Charge on Payment Settings > Service Charge, you can decide whether to display a GST-inclusive price or not.
Price Includes GST
How the system calculate the tax amount:
GST amount = item price – ( item price ÷ 1.07 )
Price Excludes GST
How the system calculate the tax amount:
GST amount = item price × 7%
Comparison
| Service Charge | Tax | Notice |
| O | Price Excludes GST | You are required to inform the customers that the price displayed are subject to GST and service charge. |
| X | Price Includes GST | All price displays are GST-inclusive. |
Switching [Price displays on menu] will change the calculation on Sales & Report > Item Sales. Constantly changing the way price displayed will cause discrepancy between [Sales Analysis] and [Item Sales].
Learn More
- More about basics of GST: Goods and Services Tax (GST): What It Is and How It Works (IRAS)
- Price displayed regulations: Displaying and Quoting Prices (IRAS)