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Overview

The Singapore government announced in February this year that the goods and services tax (GST) will be increased from the current 7% to 9% over the next two years:

  • 8% GST from 1 January 2023
  • 9% GST from 1 January 2024

This means that in year 2023, invoices issued and fees collected by PSB Academy will be subject to the prevailing GST of 8% instead of the current 7%, and in year 2024, invoices issued and fees collected by PSB Academy will be subject to the then prevailing GST rate of 9%.

As fees must be inclusive of GST at prevailing rate by law, all student contracts and invoices issued and payments received by 31 Dec 2022 will be inclusive of the current 7% GST. With effect from 1 January 2023, all student contracts and invoices issued will be inclusive of the new 8% GST.

From your student contract, you will be able to calculate the 2023/2024 GST-inclusive fee payable by:

This notice serves to supersede all 2023 and 2024 fees payable in your signed student contract. Kindly contact us if you have any queries or concerns.

Invoice issued before rate change (Before 1 Jan 2023)

  • Full payment received before rate change

    Goods delivered/services performed GST Rate (general time of supply) GST rate applicable (transitional rule*) Remarks why transitional rule can be applied
    a. Before rate change

    b. On or after rate change

    c. Partial before or after rate change     		7% 7% No adjustment required

  • Full payment received on/after rate change

    Goods delivered/services performed GST Rate (general time of supply) GST rate applicable (transitional rule*) Remarks why transitional rule can be applied
    Before rate change 7% 7% No adjustment required
    On or after rate change 7% 8% Need to CN out old tax invoice at 7% and issue new tax invoice at 8% by 15 Jan 2023
    Partial before or after rate change 7% Split rates 7% and 8% Value of goods delivered or services performed before rate change – 7% (no adjustment)

    Value of goods delivered or services performed after rate change – 8%
    Need to issue CN for value of goods/services delivered after rate change date at 7% and re-issue a new tax invoice at 8%

  • Partial payment received before and Partial payment received on/after rate change

    Goods delivered/services performed GST Rate (general time of supply) GST rate applicable (transitional rule*) Remarks why transitional rule can be applied
    Before rate change 7% 7% No adjustment required
    On or after rate change 7% 7% and 8% Value of part payment received before rate change date – 7%
    Value of part payment received after rate change date– 8%
    Need to CN out at 7% and reissue tax invoice at 8%
    Partial before or after rate change 7% 7% and 8% Lower value of payment received or goods delivered after rate change date – 8%
    CN out amount with 7% and issue a new tax invoice at 8% by 15 Jan 2023.
    Remaining value at at 7% as received before rate change date

* All transitional rules will be applicable up to 15 Jan 2023. Otherwise general time of supply GST rate applies.

Invoice issued on/after rate change (In 2023)

  • Full payment received before rate change

    Goods delivered/services performed GST Rate (general time of supply) GST rate applicable (transitional rule*) Remarks why transitional rule can be applied
    a. Before rate change

    b. On or after rate change

    c. Partial before or after rate change     		7% 7% Full payment received before rate change

  • Full payment received on/after rate change

    Goods delivered/services performed GST Rate (general time of supply) GST rate applicable (transitional rule*) Remarks why transitional rule can be applied
    Before rate change 8% 7% Supply of goods /services before rate change
    On or after rate change 8% 8% Time of supply after rate change applies
    Partial before or after rate change 8% Split rates 7% and 8% Value of goods delivered or services performed before rate change – 7%

    Value of goods delivered or services performed after rate change – 8%

  • Partial payment received before and Partial payment received on/after rate change

    Goods delivered/services performed GST Rate (general time of supply) GST rate applicable (transitional rule*) Remarks why transitional rule can be applied
    Before rate change 7% – payment received before rate change date

    8% – payment received on/after rate change date     		7% Supply of goods /services fully delivered before rate change
    On or after rate change 7% – payment received before rate change date

    8% – payment received on/after rate change date     		8% Full delivery of goods/services after rate change date – 8%
    Partial before or after rate change 7% – payment received before rate change date

    8% – payment received on/after rate change date     		7% and 8% Higher of payment received or value of goods delivered or services performed before rate change – 7%

    Remaining at 8%

* All transitional rules will be applicable up to 15 Jan 2023. Otherwise general time of supply GST rate applies.