Publication Type
News Article
Version
publishedVersion
Publication Date
11-2022
Abstract
Just before 1 August 2022, a coffeeshop zi char chain announced that it would impose a 0.1% service charge. This decision was reversed within two weeks due to "customers' reactions".While the rate might appear to be absurdly low and not worth the trouble of imposing, this article suggests that there was more to the situation than first meets the eye. GST regulations require merchants to list GST inclusive prices unless the goods and services are provided by hotels and F&B outlets that are subject to a service charge. The 0.1% rate is thus explicable as a likely attempt to get around the rules and list GST exclusive prices instead.The IRAS apparently got wind of this, for they updated their guidance within a few weeks to state that the exception would not apply to those who "levy a nominal service charge without genuine business reasons other than to avoid displaying GST-inclusive prices."
Keywords
Tax Law, Taxation, Goods and Services Tax, Singapore Tax, GST
Discipline
Asian Studies | Tax Law
Research Areas
Corporate, Finance and Securities Law
Publication
Business Times (Singapore)
First Page
1
Last Page
3
ISSN
1733-8179
Publisher
Singapore Press Holdings
Citation
OOI, Vincent.
The curious case of the 0.1 per cent service charge. (2022). Business Times (Singapore). 1-3.
Available at: https://ink.library.smu.edu.sg/sol_research/4184
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://www.businesstimes.com.sg/opinion-features/curious-case-01-cent-service-charge