In Singapore, VAT is referred to as Goods and Services Tax (GST), and it is levied on the majority of goods and services that are sold there, whether they are imported or locally produced.

Singapore adopted the Goods and Services Tax (GST) on April 1st, 1994. The UK VAT and New Zealand GST laws served as models for the GST Act. The GST is administered, assessed, collected, and enforced by the Inland Revenue Authority of Singapore (IRAS), which represents the Singaporean government in these actions.

GST implementation is viewed as a way to reduce individual and corporate income tax rates while keeping the government’s revenue base stable. As it taxes expenditures, the GST is an indirect tax. The GST rate as of right now is 7%.