The Goods and Services Tax, an indirect tax in Singapore, was designed to support economic stability and growth. It’s one of the most important financial pillars in Singapore, significantly impacting how businesses operate. As of 2025, the GST rate in Singapore is 9% for all taxable goods and services (except for nil-rated).
With the GST rate change, as laid out by the Inland Revenue Authority of Singapore (IRAS), it has become even more important to be at par with the recent amendments.
This guide provides a comprehensive overview of GST rate in Singapore, including taxable supplies, zero-rated and exempt supplies, and out-of-scope supplies, and how its charged.
Goods and services Tax (GST) is a consumption-based indirect tax levied on the supply of most goods and services in Singapore. It is charged to consumers, collected by businesses, and paid to the government.
How is GST charged in Singapore?
The GST rate is the percentage levied on the value of goods and services to arrive at the amount of tax payable. The different types of GST rates in Singapore depend upon the categories as identified by the government.
Supply of goods or services that are covered under the ambit of GST, either at a standard rate of 9% or zero-rated supplies, taxed at 0%.
Type | Standard-rated Supplies (9%) | Zero-rated Supplies (0%) |
Goods | Most local sales, e.g., a TV sold in a Singapore retail shop | Export of goods, e.g., laptops shipped to overseas customers |
Sale of imported low-value goods, e.g., tennis racquets bought online | ||
Services | Local services eg. restaurant services, spa services. | International services, e.g., air tickets from Singapore to Thailand |
Imported services, e.g., overseas marketing services |
Non-taxable supplies are either exempt from GST or fall under out-of-scope supplies, where GST does not apply.
Exempt Supplies: These are goods and services for which GST is not charged. Businesses making exempt supplies cannot claim GST credits on their purchases.
Out-of-scope Supplies (No GST): These are transactions that fall outside the scope of GST, meaning no GST is applicable at any stage of the transaction. Therefore, these transactions need not be reported in the GST returns as well.
Type | Exempt Supplies (No GST) | Out-of-scope Supplies (No GST) |
Goods |
|
|
Services |
|
|
GST was introduced in Singapore on 1 April 1994. Since then, GST rates have evolved from 3% in 1994 to 9% in 2025. Here’s a breakdown of the history of GST.
Year | GST Rate |
1 Apr 1994 to 31 Dec 2002 | 3% |
1 Jan 2003 to 31 Dec 2003 | 4% |
1 Jan 2004 to 30 June 2007 | 5% |
1 Jul 2007 to 31 Dec 2022 | 7% |
1 Jan 2023 to 31 Dec 2023 | 8% |
From 1 Jan 2024 | 9% |
GST is levied on:
GST is a consumption-based tax, meaning it is ultimately borne by the final consumer. The GST collection process is simple: Businesses collect GST on sales from consumers (output tax), claim credits (input tax) for the GST paid on business purchases/expenses, and then remit the difference of output tax and input tax to the government. This ensures tax is paid only on the value added at each stage of the supply chain.
Here’s an example to understand this cycle better:
GST is calculated as a percentage of the selling price of goods or services. The formula is:
GST Amount = (Price × GST Rate) / 100
For example, if a product costs $200 and the GST rate is 9%, the GST amount will be (200 × 9) / 100 = $18. The total price, including GST, will be $218.
The IRAS GST rate change, from 8% to 9%, applicable from 1 January 2024, follows a structured set of transitional rules so that businesses can smoothly adjust to the change. Below is a simplified breakdown of how businesses can navigate through these changes.
Scenario | Details |
Time of supply rule | GST rate is based on the earlier of invoice date or payment date. For imported services (OVR), it depends on the posting date or payment date. The Basic Tax Point (delivery date) is crucial for transactions spanning the rate change. |
Scenario 1: Invoicing in Arrears |
|
Scenario 2: Advance Receipt |
|
Scenario 3: GST on Imported Services | Reverse Charge Mechanism (RCM) applies at 9% for services imported on or after 1 Jan 2024. Further, time of delivery/payment is considered if considering both the rates. |
Scenario 4: Import of Low-Value Goods | GST applies to imported low-value goods & non-digital services from 1 Jan 2023. |
The GST rate is set at 9% in Singapore as of 2025. The new rate structure should be followed by both businesses and consumers alike. It is important that GST-registered businesses understand the types of GST Rates in Singapore and adhere to the updated regulations for smooth operations.
The key to managing the changes and minimizing disruptions lies in businesses being well-informed about the GST rates and transitional rules.