Suppose a supplier quotes S$1,000 before tax and you want to add GST at the current 9 percent rate. The GST is 9 percent of S$1,000, which is S$90, so the price including GST becomes S$1,090. This is the figure a GST registered business shows as the tax line on its invoice and later remits to IRAS.
The reverse case is just as common. If a receipt already shows S$1,090 as the total including GST and you need the tax portion, you do not take 9 percent of S$1,090. You divide by 1.09 to recover the net of S$1,000, and the difference, S$90, is the GST. Getting this direction right matters for businesses claiming input tax, because the claimable amount is the GST baked into what they paid, not 9 percent of the gross.
How it is calculated
Singapore GST has been 9 percent since 1 January 2024, up from 8 percent in 2023 and 7 percent before that. To add GST to a tax exclusive price, multiply by 9 percent and add it on, or equivalently multiply the net by 1.09 to get the gross. To strip GST out of a tax inclusive price, divide the gross by 1.09 to find the net, then subtract to get the tax. Businesses with taxable turnover above S$1 million must register and charge GST, while some supplies such as the sale and lease of residential property and most financial services are exempt. Registered businesses offset the GST they collect against the GST they pay on inputs and remit only the difference.
Frequently asked questions
What is the GST rate in Singapore?
GST is 9% from 1 January 2024 (raised from 8% in 2023 and 7% before). Businesses with taxable turnover over S$1 million must register for GST. Some supplies, such as the sale and lease of residential property and most financial services, are exempt.
Who must register for GST in Singapore?
A business must register compulsorily once its taxable turnover exceeds S$1 million in the past 12 months or is expected to do so in the next 12 months. Voluntary registration is also available for smaller businesses and can be advantageous if they incur significant GST on inputs, since registration allows them to claim input tax credits from IRAS.
What supplies are exempt from GST?
Exempt supplies include the sale and rental of residential property, most financial services such as bank interest and insurance premiums, and the import and local supply of investment precious metals. Businesses making wholly exempt supplies cannot register for GST and therefore cannot recover input tax. Businesses with a mix of taxable and exempt supplies must apportion input tax under the partial exemption rules.
How does GST interact with CPF contributions?
CPF is a mandatory social security savings scheme and is not subject to GST. Employer CPF contribution rates for workers below age 55 are 17% of ordinary wages, and employee rates are 20%, giving a combined 37% on ordinary wages up to the S$6,800 monthly ordinary wage ceiling (2025 rates). Wages themselves are outside the scope of GST entirely; GST applies only to taxable supplies of goods and services, not to employment income or CPF contributions.