GST (Goods and Services Tax)
Goods and Services Tax
Just Tell Me
GST is Singapore’s tax on many goods and services consumed locally, collected by GST-registered businesses on the government’s behalf.
Also called: Goods and Services Tax
Explain Like I’m Five
When you buy something covered by GST from a registered business, part of the payment is tax. The business collects that tax for the government. It is a tax connected to spending, rather than the income you earn from working.
How It Works
A GST-registered business charges GST on its taxable local sales and accounts for the tax to the government. GST also applies to imported goods, subject to the relevant rules.
Where You’ll Run Into It
On shopping receipts, business invoices and explanations of what a quoted price includes. It helps explain why a bill separates the price of a purchase from its tax amount.
A bill for cai png at a kopitiam may prompt this question. Whether a business charges GST depends on its registration and the transaction; the tax authority is IRAS.
Example
“What does the GST line on this receipt mean?”
A shopper is looking at the tax recorded for a purchase from a GST-registered retailer.
The Part People Get Wrong
GST does not apply identically to every transaction. Some supplies, including the sale and rental of residential property, are exempt. The official source explains the current rate and scope.
Sources
Related
- moneyIRAS (Inland Revenue Authority of Singapore)Updated
IRAS is Singapore’s main tax administrator, responsible for assessing, collecting and enforcing taxes such as income tax, property tax and GST.
- foodKopitiamUpdated
A kopitiam is a local coffee shop where drink and food stalls share a casual dining space serving a neighbourhood or nearby workers.
- foodCai pngUpdated
Cai png, also called economy rice, is rice served with a customer’s choice of prepared dishes displayed at a food stall.