As announced in Minister of Finance’s Budget 2022, the GST rate will increase from 8% to 9% on 1 January 2024. The rate change affects any GST-registered business that sells or purchases goods or services that are subject to the standard rate of GST. To ensure a smooth transition, businesses must follow some transactional rules to be prepared for the rate adjustment.
Update Price Display
All price displays with effect from 1 Jan 2024 must be inclusive of GST at 9%. This necessitates updating prices across all sales channels. Businesses have the option to present two prices:
- One applicable before 1 Jan 2024 showing prices inclusive of GST at 8%; and
- One applicable from 1 Jan 2024 showing prices inclusive of GST at 9%.
If prices remain unchanged, businesses are not required to revise displayed prices, but they must still account for GST (9/109) on sales from January 1, 2024, onwards.
Update Accounting and Billing Systems
To comply with the substantial changes associated with the GST rate adjustment, businesses should prepare the invoicing systems to accurately calculate taxes, issue invoices, and file GST returns in accordance with the new requirements.
Reverse Charge Business
GST-registered businesses subject to reverse charge (“RC business”), must account for GST at 9% on the services you procure from overseas suppliers (“imported services”) on or after 1 Jan 2024.
Diacron Assistance for a smooth Transition
Failure to account for GST on your supplies at the correct rate may attract penalties. Being prepared for GST rate change will help you avoid such increases to your business and compliance costs.
Diacron expertise can help you understand the implications and guide you through an efficient and effortless update to the new GST requirements, ensuring compliance.
For further information and assistance please contact us at firstname.lastname@example.org