Click "Books" in the left navigation bar, then click "Tax management" to see the full list of tax rates you can use on your invoices, bills and journal entries. Books comes with a fixed set of Singapore GST tax rates. You can't add, edit or delete rates; if you need a tax rate that isn't on the list, chat with us.
Each rate is either a Sales rate or a Purchases rate. Sales rates are for the GST you charge your customers, so use them on invoices. Purchases rates are for the GST you pay your suppliers, so use them on bills and expenses. Books records GST from Sales rates as output tax and GST from Purchases rates as input tax.
Sales rates:
Sales - Standard Rate (SR): 9%
Sales - Zero-Rated (ZR): 0%
Sales - Exempt (ES33): 0%
Sales - Out of Scope (OS): 0%
Purchases rates:
Purchases - Taxable (TX): 9%
Purchases - Non-Claimable (BL): 9%
Purchases - Zero-Rated (ZP): 0%
Purchases - Exempt (EP): 0%
Purchases - Out of Scope (OP): 0%
Purchases - Reverse Charge (RC): 0%
FAQ
Q: Which Purchases tax rates let me claim back GST?
GST recorded under Purchases - Taxable (TX), Purchases - Zero-Rated (ZP) and Purchases - Reverse Charge (RC) is claimable. Purchases - Non-Claimable (BL), Purchases - Exempt (EP) and Purchases - Out of Scope (OP) are not claimable.
Q: When should I use Purchases - Non-Claimable (BL)?
Use it when you've paid 9% GST to a supplier but you can't claim that GST back. Books still records the 9% GST on the bill, so your bill total matches your supplier's invoice, but it isn't treated as claimable.
Q: What's the difference between Exempt and Out of Scope?
Both are 0% and neither is claimable. Exempt (ES33 for sales, EP for purchases) is for transactions that fall under Singapore GST but are exempt from it. Out of Scope (OS for sales, OP for purchases) is for transactions that fall outside Singapore GST altogether. If you're not sure which one applies, check the IRAS website or speak to your tax adviser.
Q: Why is Purchases - Reverse Charge (RC) set at 0%?
When you use RC on a bill, Books records the purchase under the RC code but doesn't post any GST amount, so your bill total matches your supplier's invoice. If reverse charge applies to your business, you'll need to account for the GST yourself: record a manual journal entry for the reverse charge GST (9% of the purchase value), and make the matching adjustments when you file your GST F5 return.
Q: Where do I set the tax rate on a bill or invoice?
On the bill or invoice itself. If it has line items, you can set the account code and tax rate on each line. If not, one selection covers the whole bill or invoice.
Q: Can the tax rate fill in automatically?
Yes. Set a default tax rate on an account in your Chart of Accounts. That tax rate then fills in automatically whenever the account is selected.
Q: Why does my bill or invoice have a warning flag?
It is missing details Books needs to record it in your books: an account code or tax rate, or for bills, a vendor. Each affected bill or invoice is marked with a red exclamation mark in the Bills and Invoices lists. Drafts are not flagged. To fix it:
Open the flagged bill or invoice.
Add the account code and tax rate. For bills, add the vendor first if it isn't there yet.
Save.
What happens when you save depends on the status:
Pending review (bills): the details are saved. The journal entry is created once the bill is approved.
Pending payment (bills), or Due or Overdue (invoices): one journal entry is created, into Accounts Payable or Accounts Receivable.
Paid: two journal entries are created, one into Accounts Payable or Accounts Receivable and one for the payment, and the bank transaction is matched to the bill or invoice.
Questions? Chat with us by clicking on the messenger icon at the bottom right of the screen once you are logged in.