Supplies of goods or services that you make on or after 1 Jan 2023, you must charge GST at 8%. For instance, if you issue an invoice and receive payments for your supply on or after 1 Jan 2023, you must account for GST at 8%.
If you are a GST-registered business that is subject to reverse charge (“RC business”), you must account for GST at 8% on the services you procure from overseas suppliers (“imported services”) on or after 1 Jan 2023.
They called it smart shopping. Singaporeans go on their shopping spree for big tickets items, these last few days of 2022. This is due to the GST hike from 7-8%, a mere 1 % hike.
To many, that means a lot. If you are purchasing big ticket items like houses, cars, renovations, furnitures, savings can be substantial.
With this GST hike many are spending more than they need, in order to mere savings of the 1% hike. The upbeat shopping spree can be seen offline and online. Consumers can be seen, attempting to get their purchases before the hike. Despite the negative impact of pandemic to the economy, many are seen shopping.
As many can see, the pandemic did not make any damages of assets to the rich. In fact, the rich becomes richer and the poor poorer. How is that so? That is because the rich does their purchases all year long. The rich only buy necessary merchandise or profit earning merchandises, while the poor stack their purchases in order to flaunt their extra cash or to save the mere 1% tax hike.
So, please do not rush into shopping and spending thousands and tens of thousands of dollars, just to save a mere few hundred or few dollars. Think smart, act smart!