GST Calculator (Add Sales Tax)
Reverse GST Calculator (Subtract Sales Tax)
Definition – What is the GST?
The GST, or Goods and Services Tax, is a value-added tax on purchases.
As a value-added tax, only the final consumer pays the GST – purchases by business at other stages of production do not pay GST (they are charged GST, however, those charges act as a credit against the GST they charge).
Rates
Singapore’s current GST rate is 7%.
Historic rate changes have been: 1994 (introduction of GST) – 3%. Increase in 2003 to 4%, increase in 2005 to 5%, and an increase in 2007 to 7%.
What goods and services are not charged GST?
The Inland Revenue Authority keeps a record of goods and services not charged GST.
Popular (but not all) categories are:
- Financial Services
- Renting an Unfurnished Residential Dwelling
- Precious Metals
- Exports
- International Services (such as an airline ticket from Singapore to Malaysia)
Formula – How to calculate GST
GST is calculated by multiplying the GST rate (7% in Singapore) by the total pre-tax cost. The cost of GST is then added to the purchase.
Example: $75 of goods x 7% GST = $5.25 GST
$75 of goods + $5.25 GST = $80.25 total
Formula – How to calculate reverse GST
To find the GST from a total, divide the total amount by the GST rate divided by 100 and plus 1.
Example: $70 total (with GST) at 7% GST rate
(7% / 100) + 1 = 0.07 + 1 = 1.07
$70 / 1.07 = $65.42 cost before GST
GST refunds (tourism & business)
Singapore will refund GST on tourist purchases. For details see the Inland Revenue Authority page on the Tourist Refund Scheme or the Visit Singapore page on GST Refunds.
Businesses are eligible to reclaim their costs that include GST. For more information and how to register see the Inland Revenue Authority page on GST.
Sources and more resources
- Inland Revenue Authority – GST registered businesses and Non-GST registered businesses – The official pages on GST for businesses.
- Inland Revenue Authority – Goods and services not charged GST – Items that are not charged GST in Singapore.
- Inland Revenue Authority – Tourist Refund Scheme – The official page for information on GST refunds for tourists.
- Visit Singapore – GST Refunds – more information on GST refunds for tourists.