As you’ve probably heard by now, Singapore’s GST hike is going to take effect starting from 1 January 2023 as per the IRAS, and the Ministry of Finance:
In Budget 2022, the Minister for Finance announced that the GST rate will be increased from:
- (i) 7% to 8% with effect from 1 Jan 2023; and
- (ii) 8% to 9% with effect from 1 Jan 2024.
The revenue from the increase in GST will go towards supporting our healthcare expenditure, and to take care of our seniors.
The bigger question you would have is probably… what happens to the GST in my incoming shipments?
We have clarified this matter with our Declaring Agents, and they have confirmed that whether you are charged 7% or 8% GST depends on the date which the ship docks in Singapore and the goods are unloaded at the Singapore port itself.
This means that if the goods are unloaded the ship on or after 1 January 2023, you will be liable for 8% GST.
Here’s the problem: You’re not the only one rushing to import more stuff at the 7% rates. Everyone is doing so too and rushing to import quickly, and in turn, this MIGHT cause a queue at the port.
This may cause delays for unloading during this festive end-of-year period. For example, there are times previously when the port is full, and the ship is around Singapore waters just waiting for its turn to dock.
Release your shipments early. There is no way to guarantee a 7% GST rate, but time is not on your side… you need the goods to reach and get unloaded as soon as possible.