What is GST?Goods and Services Tax (GST) is a tax that is paid on goods or services consumed domestically, including imports. Show GST is a multi-stage tax that is collected at each stage of the production and distribution chain.
To determine the net amount of GST payable by or refundable to the GST-registered business in a given period, the input tax paid is deducted from the output tax collected in that period. What does GST apply to?GST is levied on: a) goods and services supplied in Singapore by GST-registered persons; b) goods imported into Singapore (unless these goods are investment precious metals or are granted import relief); and c) Imported services procured from overseas suppliers. With effect from 1 January 2020, GST is chargeable on business-to-consumer (“B2C”) imported digital services under the overseas vendor registration regime and business-to-business (“B2B”) imported services by way of a reverse charge. In general, a supply of goods and services is either taxable or exempt. Taxable goods and servicesA taxable supply is one that is standard-rated or zero-rated.
Exempt goods and servicesNo GST is levied on a supply that is exempt from GST.
If you wish to know how to register for GST, or to browse the relevant details and forms, visit the IRAS website Read also: How GST and GST Voucher Are Part Of A Fair System (Infographics) (  Supporting Singaporeans – Why do we need GST? “Expenditure in many areas will rise, especially in healthcare... To meet these needs, we must plan ahead and prepare early. We need to remain prudent in our spending, save up where possible, and raise revenues, but in a fair and progressive way. This way, we can ensure a fiscally sustainable and secure future for ourselves and our children.“- Finance Minister Heng Swee Keat, Budget Statement 2018 The Government announced that Singapore’s Goods and Services Tax (GST) would be raised from 7% to 9% sometime between 2022 to 2025. Before we move to raise the GST, we will carefully assess the prevailing economic conditions as well as our needs at that point. Why do we need to raise GST?Our population is ageing. In 2019, about 15% Singaporeans were aged 65 and above. By 2030, this will increase to 25%. We will need to spend more on healthcare to support our seniors. These are our grandparents and parents. We need more national revenue to support higher spending. Raising GST is the prudent and sustainable way to achieve this.
We will keep the cost of living manageable and affordable.
Keen to find out more? Check out the resources below.
What is GST? Goods and services tax (GST) is a tax on domestic consumption. It is paid when money is spent on goods or services, including imports. GST is a multi-stage tax which is collected at every stage of the production and distribution chain.
When was GST introduced in Singapore? GST was introduced in Singapore on 1 April 1994. What were Singapore’s GST rate over the years? When GST was introduced in 1994, the rate was 3%. This was increased to 4% in 2003, 5% in 2004 and 7% on 1 July 2007. In Budget 2018, the Government announced that GST would be raised from 7% to 9%, sometime in the period from 2021 to 2025. After reviewing national revenue and expenditure projections, and considering the current state of the economy, the Government decided that the GST rate increase will not take effect in 2021. However, as indicated in Budget 2020, Singapore will not be able to put off the increase indefinitely. Thus, the GST increase will still be needed by 2025. What does GST apply to? GST is levied on:
In general, a supply of goods and services is either taxable or exempt. A taxable supply is either standard-rated or zero-rated.
If a supply is exempt from GST, no GST is chargeable on it.
Why is Singapore raising the GST? How will the GST increase support the lower-income? How will Singaporeans cope with the increased cost of living? How do Singaporeans benefit from taxes? Why don't we borrow more instead of raising the GST? Why don't we take more from our reserves instead of raising the GST? Why don't we use money from land sales? Why don't we tax the wealthy more? Why don't we exempt basic necessities from GST? Is the Singapore Government heavily in debt? Is the GST a regressive tax? Could Singapore's increased spending needs be better funded with surpluses instead? Why raise a broad based tax like GST to fund our future spending needs? Is a 2% point increase in GST rate too much? How will Singaporeans be supported when the GST is raised? How will the Government combat illegal profiteering from the GST hike? Why raise the GST and not other taxes? Why not raise corporate tax instead? Is Singapore's GST high when compared globally? Why don't we borrow to pay for an increase in spending? Why don't we use more reserves to pay for an increase in spending? Why don't we tier the GST or exempt basic necessities from it? Why can't we take more from our reserves? Why do we still need to raise GST when the High Speed Rail may not go ahead? Who buy goods and services for personal and business use?Consumers are defined as individuals or businesses that consume or use goods and services. Customers are the purchasers within the economy that buy goods and services, and they can exist as consumers or alone as customers.
What do you call a person who purchases goods and services for personal use?A consumer is a person or a group who intends to order, or uses purchased goods, products, or services primarily for personal, social, family, household and similar needs, who is not directly related to entrepreneurial or business activities.
What is a person who uses business product called?consumer. noun. economics someone who buys and uses goods and services. The expression the consumer is often used for referring to consumers as a group.
Who is called consumer?A consumer is the one who purchases the product for his/her own need and uses or consumes it. A consumer cannot resell the good, product or service but can consume it to earn his/her livelihood and self-employment. Definition of consumer. The consumer is the one who is the end-user of any goods or services.
|
