How to change the tax rate in MoneyWorks when the GST rate increase from 7% to 8%?
Singapore is increasing the standard rated GST from 7% to 8% on 1 January 2023 and 8% to 9% from 1 January 2024.
The current standard rated GST (G GST code) rate set in MoneyWorks is 7%, pre-loaded when you first created the document (the company file) with localisation setup as Singapore. You need to update the tax rate for the standard rated GST code to facilitate the rate change on 1 January 2023.
How to change?
First, launch MoneyWorks accounting software with the document you wish to edit. Then, go to the Show menu and click on Tax Rates. Highlight the tax code (e.g. G GST code) from the Tax Rates windows and click on the Modify button to edit the tax code. Under the Percentage Rate section:
if your current setting is:
Changeover date: blank
Rate2: 7.00% (current GST rate)
then, change it to:
Rate1: Enter 7.00% (this is the existing rate)
Changeover date: enter 1 January 2023
Rate2: Enter 8.00% (this will be the new tax rate)
That's it! You have completed the rate change.
Transactions you entered with a standard rated GST (G GST code), with a transaction dated on and after 1 January 2023, will pick up 8%. Whereas transactions dated before 1 January 2023 will be using the old 7% rate.
The tax rate setting is on a per document (company file) basis. You have to go through the process of each company file if you have more than one document.
You may consider engaging a MoneyWorks consultant to make the necessary changes for you and check through the customised forms, reports, import maps, and scripts to ensure the tax rate and tax amount captures correctly.