By MoneyBees
Add or remove 9% GST, use the 9/109 tax fraction, total an invoice per line or on the subtotal as IRAS allows, and price a restaurant bill with service charge.
9%. It has applied since 1 January 2024. It was 8% in 2023 and 7% from 1 July 2007 to 31 December 2022. GST started at 3% on 1 April 1994.
Multiply the price before GST by 1.09. The GST on its own is the price times 9%. S$100 before GST is S$109 with GST, and the GST is S$9.
Multiply the GST-inclusive price by 9/109. That is the GST. Take it away from the price to get the amount before GST. On S$109 the GST is S$9. On S$90 it is S$7.43.
IRAS lets a business either work out 9% on each line and add the lines up, or work out 9% once on the subtotal, and rounding makes the two differ by a cent or so. Both are allowed as long as the business uses the same method every time.
The total GST is rounded to the nearest cent. A business may also round the whole bill to the nearest 5 cents for cash payments, up or down, as long as it does the same every time.
Yes, GST is charged on the food and on the service charge. A S$100 meal with a 10% service charge comes to S$110 before GST, and 9% GST on that is S$9.90, so the bill is S$119.90.
Yes, if they are GST-registered. Price tags, adverts and websites must show the GST-inclusive price. Hotels and restaurants that add a service charge may show prices before GST if they say clearly that GST and service charge apply.
When its taxable turnover is more than S$1 million. Businesses below that can choose to register.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).