Calculating GST & Service Charges in SG 2024
How the GST Rate Change Impacts You
In Singapore, when you buy something, you almost always pay more than the stated price due to GST and service charge. These charges, at 8% and 10% of the item's retail price, respectively, are payable when you receive the bill at most restaurants and hotels.
As many of us know, commencing from 1 January 2024, Singapore will implement the second tranche of its Goods and Services Tax (GST) hike, transitioning from 8% to 9%. Calculating GST & Service Charges in SG 2024 can be dauting. Let's find out more in this post.
There are scenarios where one or more of the following events straddle 1 Jan 2024:
- Issuance of invoice
- Payment for the goods or services
- Receipt of goods or services
Easy Way to Add GST and Service Charge to Your Bill
No need for complicated calculators! Here’s a super simple way to figure out your bill with extra charges:
- GST (9%): Multiply your bill by 1.09.
- Service Charge (10%): Multiply your bill by 1.10.
- Both GST and Service Charge: Multiply your bill by 1.199.
Here's the example:
Its is easy to calculate Singaporean GST at 9% rate:
1.If $100 is the GST exclusive value
$100 * 0.09 = $9 GST amount.
2. To get the GST inclusive amount, multiply the GST exclusive value by 1.09.
For a $100 GST exclusive value, $100 * 1.09 = $109 GST inclusive amount.
3. To extract the GST part from a GST inclusive amount, divide the GST inclusive amount by 109 and multiply by 9.
If $109 is the GST inclusive value, then ($109/109) * 9 = $9 GST value.