Blog > Marketplace News > Lazada Issues A Notice To Remind Sellers That Singapore Will Implement New Tax Rates
Lazada Issues A Notice To Remind Sellers That Singapore Will Implement New Tax Rates
Jayson 07 Nov 2023 12:15EN
According to Lazada news, based on the regulations of the Singapore government, starting from January 1, 2024, the Singapore Goods and Services Tax (GST) will be adjusted from 8% to 9%.
At that time, for orders generated from 00:00 on January 1, 2024, Lazada will use the new tax rate to pay the relevant consumption tax (GST) for LGS and GFC central warehouse orders to the relevant departments in Singapore on behalf of the user, and deduct the corresponding tax from the merchant's bill fee
According to Singapore media sources, data from the country's Inland Revenue Service (IRAS) show that more than 100,000 local businesses have successfully transitioned to the new consumption tax rate this year. About 60 businesses were charging, displaying and charging incorrect consumption tax rates during the first round of consumption tax adjustments in 2023, according to a compliance check conducted by the authority and feedback provided by the public. The companies then took action to correct the mistakes.
The Singapore government will currently raise the consumption tax in two stages, from 7% to 8% on January 1 this year, and to 9% on January 1 next year.
The tax bureau reminds that there are still two months until the second increase in consumption tax. All enterprises should ensure that they prepare for the system and adopt the 9% consumption tax rate from January 1 next year, and actively take measures to avoid problems during implementation.
Enterprises must charge the correct consumption tax rate based on different sales situations, delivery of goods or completion of services, and the timing of payment.
At that time, for orders generated from 00:00 on January 1, 2024, Lazada will use the new tax rate to pay the relevant consumption tax (GST) for LGS and GFC central warehouse orders to the relevant departments in Singapore on behalf of the user, and deduct the corresponding tax from the merchant's bill fee
According to Singapore media sources, data from the country's Inland Revenue Service (IRAS) show that more than 100,000 local businesses have successfully transitioned to the new consumption tax rate this year. About 60 businesses were charging, displaying and charging incorrect consumption tax rates during the first round of consumption tax adjustments in 2023, according to a compliance check conducted by the authority and feedback provided by the public. The companies then took action to correct the mistakes.
The Singapore government will currently raise the consumption tax in two stages, from 7% to 8% on January 1 this year, and to 9% on January 1 next year.
The tax bureau reminds that there are still two months until the second increase in consumption tax. All enterprises should ensure that they prepare for the system and adopt the 9% consumption tax rate from January 1 next year, and actively take measures to avoid problems during implementation.
Enterprises must charge the correct consumption tax rate based on different sales situations, delivery of goods or completion of services, and the timing of payment.
