Have you heard? Singapore’s GST is increasing from 7% to 8% in 2023! It’s time to purchase those big ticket items before the GST hike makes them all the more pricier. Here’s a guide on everything to do with the GST changes plus some inspiration on what to buy before time runs out!
Just received some government payouts in your bank account? Those are probably from the Assurance Package or GST Vouchers issued by the Ministry of Finance to cushion the upcoming increase in GST. In case you didn’t know, Singapore’s Goods and Services Tax (GST) will be raised from 7% to 8% from 1 January 2023 and again from 8% to 9% from 1 January 2024. Read on for everything about why it’s increasing and some big ticket items to purchase before the GST hike!
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Why Are The GST Hikes Imposed?
Image credits: IRAS
It was first announced in 2018’s Budget that Singapore’s GST will have to increase sometime from 2021 to 2025. However, due to the consequences of the pandemic, the increment has been delayed to 2023 and 2024. The reasons given for raising the GST are:
- To cope with rising healthcare costs for Singapore’s ageing population,
- To provide affordable and quality preschool education
- To beef up different types of security, from terrorism to cyber-attacks, to safeguard the country.
1% might not sound like much, but the little things add up. Especially when your purchases are expensive big-ticket items, that 1% can sting.
What To Take Note Of With The GST increase?
Another GST change that not everyone may be aware of is that it will also apply to low-value goods purchased from abroad and shipped to Singapore by air or post. This means that all your online purchases are also subjected to tax. The GST exemption for low-value goods with a value of less than S$400 will end on 31 December 2022.
Image credits: IRAS
The government argues that without this implementation, local firms will lose out to foreign shops and providers because it will “help to level the playing field for local businesses to compete effectively.” Additionally, all non-digital services, including those from outside, will now be subject to GST. This includes, for instance, learning courses from overseas educational institutions, internet counselling, and telemedicine.
Things in Singapore will become more and more expensive with inflation starting to take hold. Time’s running out before the impending changes kick in! So we’ve rounded up some items you may want to purchase internationally online now.
What to buy before Singapore’s GST rises:
1. Sneakers From StockX
Image credits: StockX
If you’re still thinking about whether you wanna cop that new pair of Nike Dunk Lows, just do it! Sneakers are probably the most comfortable and stylish footwear arsenal one can have in their wardrobe. Sometimes the sneakers you want are snapped up so quickly, the only way to get them would be by buying from resellers. But buying from resellers on eBay or Carousell comes with worries of getting swindled with fakes. StockX is one of the slightly more reputable sources to get resale sneakers from as they have a dedicated team to help check the authenticity of each shoe. So if you’re looking to get those exclusive kicks for the new year, perhaps now’s the time.
Price: From SGD $274
GST Increase 8%: $295.92 | GST Increase 9%: $298.66
Get Your Big Ticket Items Before The GST Hike: Get yours at StockX
2. Beauty & Make-Up From Nordstorm Or Beauty Bay
Image credits: Beauty Bay
Sometimes, Sephora is just not enough. There are so many new and existing make-up and skincare products that are hyped, especially with the popularity of Tiktok. But unfortunately, some of them are hard to get locally. If you want to try them out for yourself, the only option is to get them overseas.
Nordstrom and Beauty Bay are great online stores that carry beauty brands you can’t usually find in Singapore like ILIA, Freck, Murad, or Nécessaire. Together, they have more than 300 brands with over 10,000 products ranging from skincare, hair, nails, and fragrance to cosmetics — you’re bound to find something you want! Ready, set, glow and get your beauty haul.
Price: From SGD $10 – $7,239.84
GST Increase: 8% $10.80 – $7,819.03 | GST Increase 9%: $10.90 – $7,891.43
11 Tried-And-Tested Cafes And Restaurants In Phuket To Visit: Gets yours at Beauty Bay
3. Luxury Fashion From Luisaviaroma, Mr Porter, & FarFetch
Image credits: Mr Porter
Luisaviaroma, Mr Porter, and Farfetch are notable multi-label luxury brand stores that carry more than 600 brands from across the world. Think top-tier designers like Acne Studios, Gucci, Chloé, Fear of God, Alexander McQueen, Maison Margiela, Thom Browne, and many other sartorial elites. These retailers are known for giving runway-ready fashion and limited-edition accessories that will instantly upgrade your wardrobe.
Price: From SGD $30 – $12,530
GST Increase 8%: $32.40 – $13,532.40 | GST Increase 9%: $32.70 – $13,657.70
Get Your Big Ticket Items Before The GST Hike: Get yours at Farfetch
4. Luxury Watches From Chrono24
Image credits: Chrono24
One of the most exciting moments of the year might be when you get a bonus at work. Even more fun is choosing what to spend the money on. Of course, there are countless possibilities, but a good watch might be one of the best choices. A watch doesn’t only reflect the perfect treat you deserve, but it can also act as an investment against inflation. Chrono24 offers a wide range of new and pre-owned luxury watches for your selection.
Price: From USD1,500 (USD1,605 after tax)
GST Increase 8%: USD 1,620 | GST Increase 9%: USD 1,635
Get Your Big Ticket Items Before The GST Hike: Find out more about Chrono24
5. Supplements From iHerb
Image credits: iHerb Facebook
iHerb is a US-based online one-stop-shop providing everything wellbeing-related — including herbal remedies, aromatherapy, beauty products, protein mixes, healthy food, and baby bottles. iHerb also has free shipping to Singapore for orders over S$20. When shopping on iHerb, remember to make use of our 5% cashback on YouTrip Perks!
Price: From SGD $3.84 – $85.34
GST Increase 8%: $4.14 – $92.17 | GST Increase 9%: $4.19 – $93.02
Get Your Big Ticket Items Before The GST Hike: Get yours at iHerb
6. Digital Tools From Adobe Creative Suite
Image credits: Adobe
For the majority of the creatives out there, the Adobe Creative Cloud Suite is pretty much a must-have. Adobe is home to all the tools you need for all types of creative work, including video, UI/UX, social media, and photography and graphic design. Some popular Abobe applications you might have heard of are Lightroom, Photoshop, Illustrator, and Premiere Pro. While the annual subscriptions are often heftier, they are still cheaper per month. Perhaps it’s time to renew your subscription soon with the annual payment plan before the extra 1% charge.
Price: From SGD $789.27/year (incl GST)
GST Increase 8%: $796.65 | GST Increase 9%: $804.02
Get Your Big Ticket Items Before The GST Hike: Get yours at Adobe Creative Cloud Suite
7. VPN
Image credits: Surfshark
If we don’t do illegal stuff, we don’t need a Virtual Private Network (VPN) right? Well, not really. In general, a VPN helps hide your online activity by encrypting your connection and hiding your IP location. On public wifi networks (like that Starbucks cafe you connected to for remote work), malicious actors like hackers can easily monitor your network activity and steal your personal information like credit card or bank account details. Slightly less malicious actors like corporations or advertisers like to track your online behaviour for things like data collection. Even being in Incognito mode does not shield you from the prying eyes of your Internet Service Provider. Hence, a VPN not only provides security from these people, but it also gives you data privacy, anonymity, and the ability to bypass geo-blocking.
Popular VPN providers like NordVPN, Surfshark, and ExpressVPN offer annual subscriptions instead of monthly payments, which will eventually be cheaper when you calculate it based on the cost per month. Getting a subscription within this year can help you save on that extra 1%!
Price: From SGD $ 94.35/ year (incl GST)
GST Increase 8%: $101.90 | GST Increase 9%: $102.84
Get Your Big Ticket Items Before The GST Hike: Get yours at NordVPN
8. Activewear From Lululemon
Image credits: Lululemon
We know you’ve been looking at that pair of Align leggings for the longest time. It’s probably time to check out soon. Lululemon is the cult-loved active-wear brand and understandably so. They are comfortable, durable, flattering, and pass the squat test. With a variety of colours and fits, you’ll be spoilt for choices. Some might argue that lulu is overpriced but if you don’t get it soon, it’ll definitely be even more overpriced. Don’t worry about shipping and returns — they’re free!
Price: From 880 HKD
GST Increase 8%: 950.40 HKD | GST Increase 9%: 959.20 HKD
Get Your Big Ticket Items Before The GST Hike: Get yours at Lululemon
9. Furniture, Decor, & Appliances From Taobao
Image credits: Taobao
Many financially-savvy Singaporean homeowners source their home decor and furniture from Taobao. Taobao is a Chinese marketplace that offers innumerable products from food to furniture. Many have taken a liking to their home decorations and appliances for their modern looks and acceptable price tag. From TV consoles to upholstery cleaners, there’s pretty much something for every imaginable household need. Taobao might be a little daunting to use at first but once you get the hang of it, with this Ultimate Taobao Shopping Guide, you’ll never want to leave.
Price: From SGD $5.80 – $604.40
GST Increase 8%: $6.26 – $652.75 | GST Increase 9%: $6.32 – $658.80
Get Your Big Ticket Items Before The GST Hike: Get yours at Taobao
Happy Shopping!
Image credits: IRAS
In case you’re still confused, here’s an infographic to sum up the GST changes for both digital and non-digital goods. Have fun and shop wisely! And while you’re splurging away before the GST hike commences, remember to use your YouTrip card to cash in on our sweet wholesale exchange rates!
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Stay safe and happy eating!
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