What is Goods & Services Tax (GST)?

Goods and Services Tax (GST) is Singapore’s consumption tax, charged at 9% on almost every sale of goods and services and on imports, and collected for IRAS by GST-registered businesses. The rate has been 9% since 2024, up from 8% in 2023.

Updated Published 4 min read INCOME TAX
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Singapore · since 1 Jan 2024 · GST rate
9%
+1 pt in 2024
Previous (2023)8%
Introduced1994 at 3%
Registration thresholdSGD 1,000,000 turnover
GST on SGD 100SGD 9
Current rate9%from 1 Jan 2024
20238%first step of the two-step rise
2007 – 20227%15 years unchanged
At introduction3%1 April 1994
Registration thresholdSGD 1,000,000taxable turnover in a year
Zero-rated0%exports and international services
On this pageHow it worksWorked exampleWhat it means for youMisconceptionsRelated termsSources

Key takeaways

  • GST is 9% on standard-rated supplies made in Singapore and on imported goods; it was raised from 7% to 8% on 1 January 2023 and to 9% on 1 January 2024.
  • Only GST-registered businesses charge it: registration is compulsory once taxable turnover passes SGD 1,000,000 in a year, and voluntary below that.
  • Exports and international services are zero-rated (GST at 0%); residential rent and most financial services are exempt (no GST, and input tax on them is not claimable).
  • Displayed prices must include GST, so a shelf price already contains the tax; the reverse calculation is price × 9 ÷ 109.
  • GST Vouchers, the Assurance Package and U-Save rebates are the Government’s offset for the tax; eligibility runs on income and the Annual Value of the home.
Definition

How GST is charged and passed on

GST is a value-added tax: each registered business charges it on its sales (output tax), reclaims the GST it paid on its purchases (input tax) and remits the difference to IRAS. The consumer at the end of the chain bears the full rate. Three treatments cover every sale:

Standard-rated9%Nearly all goods and services sold in Singapore, and imports. The rate on the receipt.
Zero-rated0%Exports of goods and international services. Still a taxable supply, so input tax is claimable.
Exemptno GSTResidential property sale and rent, most financial services, digital payment tokens. Input tax on making them is generally not claimable.

The two-step rise from 7% was announced in Budget 2022 and completed on 1 January 2024. Everything a GST-registered business needs — registration, returns, invoices — is on the GST-registered business page; this page covers the tax itself.

Worked example

Adding and removing 9%

Adding GST multiplies the pre-tax price by 1.09. Removing it from a GST-inclusive price divides by 1.09, which is not the same as taking 9% off.

Before GSTGST at 9%Price with GST
SGD 100SGD 9SGD 109
SGD 1,000SGD 90SGD 1,090
SGD 10,000SGD 900SGD 10,900

Working back from SGD 109 on a receipt

GST-inclusive priceSGD 109
÷ 1.09 → pre-tax valueSGD 100
GST in the priceSGD 9

Taking 9% off SGD 109 would give SGD 99, which is wrong; the tax is 9% of the pre-tax value, not of the total.

What it means for you

Where GST reaches a household or a business

Everyday pricesGST calculator
Shelf prices are GST-inclusive by law, so the 9% is already inside what is paid at the till. The calculator splits any price into its pre-tax value and GST.
Cost of livingCost of living calculator
The 2024 step to 9% added directly to the Consumer Price Index; MAS cited it as a contributor to headline inflation that year.
GST VouchersAnnual Value
The permanent GST Voucher scheme pays cash, MediSave and U-Save rebates to lower- and middle-income households; the Annual Value of the home and assessable income set the tier.
Running a businessGST-registered business
Past SGD 1,000,000 of taxable turnover, registration is compulsory and GST must be charged, filed and paid quarterly. Below it, registration is a choice with its own conditions.
Renting a homeRental stamp duty calculator
Residential rent is exempt, so a landlord does not add GST to it; stamp duty on the lease still applies. Commercial rent is standard-rated.
Common misconceptions

Five things people get wrong

GST is 7%.
It was, from 2007 to 2022. It rose to 8% in 2023 and to 9% from 1 January 2024.
Every business charges GST.
Only GST-registered ones. Registration is compulsory above SGD 1,000,000 of taxable turnover; a smaller business that has not registered must not charge it.
GST applies to residential rent.
Residential property sale and rent are exempt supplies. Commercial property is standard-rated.
Removing GST means taking 9% off the price.
The tax is 9% of the pre-tax value, so the GST-inclusive price is divided by 1.09. On SGD 109 the GST is SGD 9, not SGD 10.
Exports carry GST.
Exports and international services are zero-rated, so GST is charged at 0% and the exporter can still reclaim input tax.
Sources: IRAS

This page is provided for educational and informational purposes only. It does not constitute financial advice. All figures and worked examples are estimates for illustrative purposes, are subject to change, and do not reflect any individual’s circumstances. Always refer to IRAS and seek independent professional advice before making any financial decisions.