On 18 February 2022, the Singapore Government announced that the Goods and Services Tax (GST) rate will be increased over the next two years:

From 7% to 8% with effect from 1st January 2023

From 8% to 9% with effect from 1st January 2024

Following this, we wish to inform you that element14 Pte. Ltd will be charging Goods and Services Tax (GST) at the prevailing rate at the time of supply.

If the supply takes placeGST applicable
Before 1st Jan 20237%
Between 1st Jan to 31 Dec 20238%
On/after 1st Jan 20249%

Transitional Rule for Rate Change

IRAS has provided an e-tax guide that explains the general transitional rules applicable on transactions starting 1st Jan 2023. In summary, if full payment is received or the goods are delivered before 1st Jan 2023, the goods are subject to 7% GST. In all other circumstances, part or full value of the goods 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.

You may refer to Appendix 1 for illustrative examples.

Additionally, IRAS has confirmed that the same transitional rules above will be applicable when the GST rate is increased from 8% to 9%, with effect from 1st January 2024. IRAS will provide more details and updates on this second rate change before April 2023.

Should you need further clarification, please do not hesitate to contact your element14 Pte. Ltd representative.

Appendix 1

(1) Invoice issued before 1st Jan 2023

Payment receivedGoods deliveredGST rate to applyRemarks
Before 1st Jan 2023Before 1st Jan 20237%No adjustment required
On/after 1st Jan 2023
Part before and part on/after 1st Jan 2023
On/after 1st Jan 2023Before 1st Jan 2023
On/after 1st Jan 20238%CN original invoice at 7% and issue new tax invoice at 8%
Part before and part on/after 1st Jan 20237% and 8 %

(a) The value of goods delivered before rate change – 7% (no adjustment)

(b) The value of goods delivered after rate change – 8%

Issue CN for value of goods delivered after rate change date at 7% and re-issue a new tax invoice at 8%

Part before and part on/after 1st Jan 2023Before 1st Jan 20237%No adjustment required
On/after 1st Jan 20237% and 8 %

(a) The value of goods delivered before rate change – 7% (no adjustment)

(b) The value of goods delivered after rate change – 8%

Issue CN for value of goods delivered after rate change date at 7% and re-issue a new tax invoice at 8%

Part before and part on/after 1st Jan 20237% and 8 %

(a) The lower value of payment received or goods delivered after rate change date – 8% CN amount with 7% and issue a new tax invoice at 8%.

(b) The remaining value of the supply is subject to 7% GST.



2) Invoice issued on/after 1st Jan 2023

Payment receivedGoods deliveredGST rate chargeable based on the general time of supplyRemarks
Before 1st Jan 2023Before 1st Jan 20237%Full payment received before rate change at 7%
On/after 1st Jan 2023
Part before and part on/after 1st Jan 2023
On/after 1st Jan 2023Before 1st Jan 20238%Supply of goods before rate change at 7 %
On/after 1st Jan 2023Time of supply after rate change applies at 8%
Part before and part on/after 1st Jan 2023

(a) The value of goods delivered before rate change – 7%

(b) The value of goods delivered after rate change – 8%

Part before and part on/after 1st Jan 2023Before 1st Jan 2023

Part payment before 1st Jan 2023 – 7% GST

Part payment on/after 1st Jan 2023 – 8% GST

Supply of goods fully delivered before rate change at 7%
On/after 1st Jan 2023

Full delivery of goods after rate change date at 8%

Part before and part on/after 1st Jan 2023

(a) To apply 7% on the higher of payment received or value of goods delivered performed before rate change

(b) Remaining at 8%