GST rate Singapore — 9% standard, F5 and OVR
Why GST went from 8% to 9% on 1 January 2024, when the S$1m registration threshold applies, and how zero-rated exports and OVR map to InvoiceNow.
The Singapore Goods and Services Tax (GST), governed by the Goods and Services Tax Act 1993 (Cap. 117A), is a broad-based value-added tax on supplies of goods and services and on imports. The standard rate increased from 8% to 9% on 1 January 2024, completing the two-step hike announced in Budget 2022 (7% → 8% on 1 January 2023, 8% → 9% on 1 January 2024). Businesses with taxable turnover above S$1 million per calendar year must register for GST; voluntary registration is also possible below that threshold. Returns are filed quarterly on form F5 through myTax Portal. Exports and international services are zero-rated, while overseas digital service providers fall under the Overseas Vendor Registration (OVR) regime.
- Standard rate: 9% since 1 January 2024 (was 8% in 2023, 7% before).
- Registration threshold: S$1m of taxable turnover per calendar year.
- F5 return: filed quarterly via myTax Portal, one month after period end.
- Zero-rated: exports of goods and international services (section 21 GSTA).
How it works
Determine the right rate per invoice line. Use 9% for standard-rated supplies in Singapore; 0% (zero-rated) for exports of goods supported by export evidence and for international services under section 21(3) of the GST Act; 'exempt' for prescribed financial services, residential property and digital payment tokens; 'out-of-scope' for supplies made wholly outside Singapore. Each line in the InvoiceNow XML carries a discrete GST category code so IRAS can reconcile against the F5.
Apply transitional rules carefully across rate changes. For supplies straddling 1 January 2024, the rate is determined by the basic tax point (delivery of goods or performance of services) and the time of issue of the tax invoice — not by the payment date alone. The IRAS e-Tax Guide on the 2024 GST rate change sets out the matrix; legacy invoices issued in 2023 at 8% for 2024 supplies may need a credit note + reissue at 9%.
File the F5 GST return quarterly via myTax Portal, due one month after the end of each accounting period. Box 1 reports standard-rated supplies (excluding GST), Box 4 GST charged, Box 5 taxable purchases, Box 7 input tax claimed. From 1 April 2026 the IRAS InvoiceNow mandate progressively replaces manual data entry: invoice data already flowing through InvoiceNow is pre-populated, and the F5 becomes a reconciliation rather than a fresh data submission.
Handle OVR (Overseas Vendor Registration) when buying digital services or low-value goods from abroad. Since 1 January 2023, overseas suppliers of remote services to Singapore consumers (B2C) and of low-value goods (below S$400) imported by air or post must register for GST under OVR and charge 9% from 2024. Business customers (B2B) handle equivalent transactions via the reverse charge mechanism if they make exempt supplies.
Use the Major Exporter Scheme (MES) or the Approved Contract Manufacturer & Trader (ACMT) scheme to defer GST on imports if you qualify. These schemes are encoded in InvoiceNow through specific exemption reason codes in SG PINT, so IRAS sees the legal basis for zero-rating or import GST suspension directly on the invoice rather than as a footnote.
Legal framework
- Goods and Services Tax Act 1993 (Cap. 117A).
- GST (General) Regulations.
- IRAS e-Tax Guide: 2024 GST Rate Change — A Guide for GST-Registered Businesses.
- IRAS e-Tax Guide: GST on Imported Services and Low-Value Goods (OVR).
Frequently asked questions
Why did GST in Singapore go up to 9%?
The Minister for Finance announced the GST hike in Budget 2022 to fund rising healthcare and social spending as the population ages. To soften the impact, the increase was split into two steps: 7% → 8% on 1 January 2023 and 8% → 9% on 1 January 2024. The Assurance Package and permanent GST Voucher scheme accompany the increase to offset costs for lower-income households. The 9% rate is enacted by the GST (Amendment) Act 2022 and is now the standing standard rate.
When must a business register for GST?
Compulsory registration applies once taxable turnover exceeds S$1 million per calendar year, looking back at the past 12 months (retrospective basis) or forward over the next 12 months on the basis of contracts already signed (prospective basis). Voluntary registration is also possible below the threshold — useful for B2B exporters who recover input GST. Once registered, you must remain registered for at least 2 years, charge 9% GST on standard-rated supplies and file F5 returns quarterly.
Are exports really zero-rated, or just exempt?
Exports are zero-rated, not exempt — that is a critical distinction. Zero-rated supplies are taxable supplies at the rate of 0%, which means the exporter can fully recover input GST on related purchases. Exempt supplies (financial services, residential property, digital payment tokens) carry no GST but also block input GST recovery. Zero-rating requires export evidence under regulation 105 of the GST (General) Regulations: shipping documents, customs permits, bills of lading or air waybills.
Does InvoiceNow handle GST treatment codes automatically?
It handles transmission, not classification. The SG PINT specification provides a controlled vocabulary of GST treatment codes — standard 9%, zero-rated (export), zero-rated (international services), exempt-financial, out-of-scope and so on — but it is the seller's billing system that must assign the right code per line. 4invoices applies the correct code based on product/service category, customer country and import-export evidence, and IRAS receives the breakdown directly without manual F5 box filling.
What is the OVR threshold and does it affect local businesses?
OVR applies to overseas suppliers whose global turnover exceeds S$1m and whose B2C supplies to Singapore exceed S$100,000. Once registered, the foreign supplier charges 9% GST to Singapore consumers on remote services and low-value goods (below S$400). For local GST-registered businesses, the practical effect is that foreign B2B inputs are now mostly clean — the supplier charges and IRAS reconciles via reverse charge rules, removing the previous loophole where digital services from abroad escaped GST altogether.