GST Increase in 2024

Following an increase in the GST from 7 percent to 8 percent on 1 January 2023, the GST will now increase again from 8 percent to 9 percent on 1 January 2024. For any standard-rated goods or services that are supplied on or after 1 January 2024, businesses must charge GST at 9 percent. 

Change Management

The increase in GST rates may affect systems, documents, and data automation. To ensure a smooth change management, you may need to adapt your accounting, invoicing and sales system, as well as changing your price lists to the correct rate, check your contracts and terms of conditions, and consider whether there are any customers that need to be informed of the changes (e.g. customers who have already placed an order in 2023 but for one of the reasons below the new rate will apply (partly) to their purchase).
In principle, a supply will include the change in the GST rate where either the issue of an invoice, the receipt of payment (or the making of payment if there is a reversed charge supply) or the supply of goods or services occur in whole or in part on or after 1 January 2024.
However, there are transitional rules in place for supplies of goods and services, that will be implemented partly in 2023 and partly in 2024 to ensure an easier transition and fair taxation.
For any full payment received before 1 January 2024, the supply is subject to GST at 8 percent, even if the invoice is issued in 2024.
If a business has not received full payment in 2023, there is the option to charge GST at 8 percent on the portion of goods/services fully or partially supplied in 2023 or the payment received in 2023 (whichever is higher), even if the date of supply or received payment and issue of invoice is (partially) after 1 January 2024. If applicable, GST of 9 percent will apply to the remaining value of the supply.
Please see examples below:  

If a business has already issued an invoice in 2023 but has neither received full payment nor supplied the goods/services in full in 2023, it must issue a credit note and a new tax invoice (with 9 percent GST on the applicable amount) to the customer by 15 January 2024 to adjust the original tax invoice.  
If the issued invoice is not a tax-invoice, a business may make an adaption to the transaction in accordance with its normal business procedures.

 From The Newsletter


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