GST on cars
GST on cars is the Goods and Services Tax charged on a vehicle purchase in Singapore, applied on top of the car's value and bundled into the on-the-road price.
What it means
GST, or Goods and Services Tax, is Singapore's broad-based consumption tax, and it applies to a car purchase the same way it applies to most goods sold here. For a new car, GST is calculated on the vehicle's value after excise duty has already been added, so the tax effectively sits on a layer of other costs rather than on the bare Open Market Value alone. The result is a tax-on-tax structure: excise duty is charged first, then GST is applied to a base that includes it. When you buy from an authorised dealer or a parallel importer, the GST is wrapped into the on-the-road price you are quoted, alongside excise duty, the registration fee, the Additional Registration Fee, and COE. Because the rate is set by the government and has been revised over the years, the exact figure depends on the rate in force at the time of registration rather than any fixed number.
Why it matters in Singapore
GST is one of several taxes stacked onto a Singapore car, and understanding where it sits helps explain why local prices are so far above the manufacturer's base cost. It is rarely shown as a separate line in a showroom quote, so buyers comparing cars often see only the headline on-the-road price without realising how much of it is tax. Knowing that GST is layered on after excise duty also clarifies why a small change in the GST rate can move the final price more than the rate alone would suggest.
What it means for car owners
For most owners, GST is a cost paid once, at purchase, and folded into the price. You do not pay it again on the car itself year to year. It is still worth asking a dealer for a breakdown of the on-the-road price so you can see how GST, excise duty, COE, and the registration fees each contribute. When budgeting for a car, treat the quoted price as already including GST, and remember the same tax applies to many of the running costs that follow, such as servicing, parts, and detailing work.