{"id":10261,"date":"2022-12-26T07:00:12","date_gmt":"2022-12-25T23:00:12","guid":{"rendered":"https:\/\/qashier.com\/sg\/?p=10261"},"modified":"2023-02-14T15:15:48","modified_gmt":"2023-02-14T07:15:48","slug":"get-your-business-gst-ready-for-2023","status":"publish","type":"post","link":"https:\/\/qashier.com\/sg\/blog\/2022\/12\/26\/get-your-business-gst-ready-for-2023\/","title":{"rendered":"Get your business GST-ready for 2023"},"content":{"rendered":"

When 2023 comes rolling through, is your business ready to take on the 8% Goods and Service Tax (GST) hike?<\/span><\/p>\r\n

Looking ahead to the new year, Qashier wants to provide clarity on the matter and help you manage this transition, one which is critical to yours and many other businesses.<\/span><\/p>\r\n

If your current POS provider hasn\u2019t already prepared you for the change, Qashier stands GST-ready, so we got you covered!<\/span><\/p>\r\n

Covid-19 disruptions and the festive season may have overshadowed this news, and some companies might not be ready for the change. 2022 is rapidly coming to a close and before your business gets caught up in planning promotions for the Lunar New Year season, we think it\u2019s important to first prepare for the GST being raised from 7% to 8%.<\/span><\/p>\r\n

The main objective for this hike, as <\/span>stated on IRAS’s website<\/span><\/a>, is to help Singapore cover its healthcare costs and improve its welfare infrastructure for the elderly.<\/span><\/p>\r\n

The impact of GST on revenue and operational costs are critical concerns that businesses such as yours will have to navigate.<\/span><\/p>\r\n

Here are four things you can do to prepare for its impact, and how Qashier can help your business mitigate the GST hike in 2023.<\/span><\/p>\r\n

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  1. Take note of when the new GST rate begins<\/b><\/li>\r\n<\/ol>\r\n

    GST-registered businesses must display new prices with the GST rate at 8% from 1 Jan 2023 onwards. If you cannot switch your price displays overnight, you can display two prices. According to IRAS’s website, the two price displays must reflect the following:\u00a0<\/span><\/p>\r\n

    (a) One applicable before 1 Jan 2023 showing prices inclusive of GST at 7%<\/span><\/p>\r\n

    (b) One applicable on or after 1 Jan 2023 showing prices inclusive of GST at 8%<\/span><\/p>\r\n

    Hotels and food & beverage (F&B) outlets with service charges need not display GST-inclusive prices for each menu item. However, they must display a statement informing diners that prices shown are subject to GST and service charges. If your F&B establishment has no service or has a nominal service charge, you’re still required to display GST-inclusive prices, or you might be penalised.<\/span><\/p>\r\n

    In addition, from 1 Jan 2023 onwards, the government will extend GST to imported low-value goods. These goods are imported via air or post and have a value up to and including $400 (the current GST import relief threshold). Additionally, GST will extend to imported non-digital services for business-to-consumer (B2C) companies. If you’re a local vendor that stores your goods outside Singapore, you will be affected by these changes. Currently, local suppliers’ sale of goods warehoused overseas is treated outside the scope of GST. Read more on <\/span>how this new GST rule will apply to such businesses.<\/span><\/a>\u00a0<\/span><\/p>\r\n

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    1. Understand how the GST rate hike will impact your pricing strategy<\/b><\/li>\r\n<\/ol>\r\n

      It’s important to know that GST-registered businesses need not pass on the GST hike to their consumers. You are liable to account for the new rate to IRAS, but whether you increase prices depends on your pricing strategy.<\/span><\/p>\r\n

      For companies serving business-to-business (B2B) clients, you’ll have to assess whether your products are price\u2013sensitive. Passing on additional GST increases to a company that is not GST registered means they will not be able to claim them as business expenses. The price increase will affect their costs. Therefore, you’ll need to consider whether you should absorb the rate hike in this scenario.<\/span><\/p>\r\n

      Customers will likely look for a more affordable supplier if you’re selling competitive, price-sensitive products. Adversely, if you choose to absorb the whole GST amount or just the 1% increase, it can also affect your bottom line. Consider the implications of <\/span>pricing strategies<\/span><\/a> before deciding whether to absorb the GST rate hike.<\/span><\/p>\r\n

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      1. Make relevant changes to systems and processes<\/b><\/li>\r\n<\/ol>\r\n

        Your business needs time to plan, review and adjust financial matters to prepare for the GST rate hike. From procurement to invoicing and accounting systems, take time to do the following:\u00a0<\/span><\/p>\r\n