If I purchase a policy with premium fully paid on 20 Dec 2022 for coverage period from 20 Dec 2022 to 19 Dec 2023, what will be the applicable GST rate?
For premium payment received before 1 Jan 2023, the GST rate applicable is 7%.
If I purchase a policy in 2022 with policy premiums paid via credit card instalment plan, am I entitled to 7% GST for instalments in 2023?
If the credit card transaction is effected before 31 Jan 2023 and it is related to bills and invoices that are issued before 1 Jan 2023, payment will be deemed to be received before 31 Dec 2022 and 7% GST will apply.
If the credit card transaction takes place in 2023 for bills and invoices that are issued in 2023, 8% GST will apply.
If I purchase a policy in 2022 with coverage period from 1 December 2022 to 30 November 2023 at premium of S$1,000, and arrange to pay the premium via instalment plan with Chubb, am I entitled to 7% GST for instalments in 2023?
For instalment plan arranged with Chubb, any premium not received by Chubb before 31 Dec 2022 will subject to the revised applicable GST rate. The lower of:
Example as follows:
Part payment expected to be received on/after 1 January 2023: $750
Part services performed on/after 1 January 2023: $916.67 ($1,000 X 334/365)
The lower of the above, $750 will subject to 8% and the remaining value of $250 will subject to 7%.
I received a renewal notice and tax invoice with 7% GST. However, I missed the payment in 2022, am I still entitled to the 7% GST based on the renewal notice and tax invoice?
you will receive a credit note with the corresponding 7% GST and revised tax invoice for the change in GST rate based on your period of insurance – 8% for period of insurance in 2023 and 7% for period of insurance in 2022.
I have completed my premium payment (via my broker) in 2022. However, I received a credit note and revised tax invoice with a . What should I do?
According to GST: Guide for the Insurance Industry issued by IRAS, premiums collected by the insurance intermediary (in this case, the broker) are considered as received by the Insurer. Therefore, the premium collected by the broker before 1 Jan 2023 should reflect 7% GST.
You may wish to contact your broker for assistance and clarification.
If I purchase a policy in 2023, for period of coverage which commences in 2022, am I entitled to 7% GST for the period of insurance in 2022?
No, all tax invoices issued in 2023 would reflect 8% GST.