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chapter three of six

Adding GST and issuing tax invoices

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Small business guides > Quick guide to GST > Adding GST and issuing tax invoices

Calculating GST and issuing tax invoices

If you’re a GST-registered business you must add GST to your prices. You also need to issue GST invoices to customers so they know the amount of GST being added to the bill and the total cost.

Let’s take a look at the maths and requirements of both.

How to add GST to prices

Once you’re GST registered, you will need to put prices up by 7%. There’s a very simple formula for doing that: 

How to calculate GST

The invoice should include total amount payable (excluding GST), the GST rate and the total amount of GST chargeable (shown as a separate amount).

The total amount payable (including the total amount of GST chargeable) and a breakdown of exempt, zero-rated or other supplies, stating separately the gross total amount payable for each type of supply.

If the total amount (inclusive of GST) stated in the invoice doesn’t exceed $1000, you may issue a simplified tax invoice.

What are tax invoices?

A tax invoice tells a customer how much GST they paid on a purchase. A tax invoice must be issued when your customer is GST registered. Your customer will keep this as a supporting document to claim input tax on standard-rated purchases.

Tax invoice example

Here’s what you need to put on a tax invoice.

How to issue a tax invoice

A simplified tax invoice can also be used for invoice amounts less than $1000 (inclusive of GST). You can get more information on invoicing customers here.

Receipts versus tax invoices

A receipt printed at point of sale is called a tax invoice if it has all of this information on it. But don’t forget it must contain the words ‘tax invoice’.

Chapter 4: Claiming GST (and input tax credits)

Find out about the GST you can claim back on business expenses.

Read next chapter

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Everything you need to know about GST in Singapore.

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