Hospitality business expenses in Singapore: the complete guide for cafes, restaurants, bars and caterers

Singapore treats hospitality more simply than most countries on the sales side (one GST rate, no GST-free food) and more generously on the entertainment side (input tax on feeding clients and staff is claimable). The complications sit elsewhere: CPF and levies on every hire, a narrow list of blocked input tax, a car prohibition with no exceptions for business use, and a renovation deduction with its own cap and clock. This guide goes through the whole ledger of a cafe, restaurant, bar, hawker stall or catering business, category by category, with a verdict for each one before the detail. Every figure is sourced to IRAS, the CPF Board or another Singapore Government source in the Sources section, retrieved 10 October 2026.

What this guide covers: food and beverage stock, GST on what you sell with service charges and tips, wages, CPF, levies and medical costs, staff meals and functions, client entertainment, rent and utilities, licences and fines, delivery platforms, software and payment fees, kitchen equipment, renovation and repairs, uniforms and cleaning, vehicles and transport, and the GST return, records and year-end work that tie it together.

The hospitality ledger at a glance

The rest of this guide walks through each row, and every section opens with its verdict.

Where ExpenseFlow fits

An F&B purchase ledger is high volume and low value: produce, meat, seafood, dairy, beverages, packaging, cleaning supplies, gas, often several invoices a day across a dozen suppliers. ExpenseFlow captures each supplier invoice and receipt (email forward, upload or phone), reads the line items and the GST per line, codes each line to your chart of accounts with a written reason, and routes anything uncertain to a person before it posts. For Singapore venues the checks that matter most are built in: a line taxed at a rate that is not 9% is flagged, and a receipt still showing the old 8% or 7% rate is flagged by date; an overseas software or platform bill with no GST is flagged for the reverse charge; the line-level GST is recomputed against the printed totals; and a line that reads as entertaining is held until the name of the person entertained, the purpose and the host are recorded, which is exactly what IRAS asks for on a claim over $1,000. After approval the bill syncs to Xero with the source document attached and the decision trail written to the bill’s history, or to QuickBooks Online as a coded bill.

What it does not do: it does not run payroll, CPF or SDL, it does not decide for you whether a benefit falls under Regulation 26, it does not count stock, it does not touch the till, and it does not file your GST F5. Those stay with you and your accountant. The matching hospitality chart of accounts for Xero and for QuickBooks give you account names that line up with the categories below.

The ExpenseFlow for hospitality businesses page covers these checks across all five countries.

Food and beverage stock

Ingredients, beverages, alcohol and packaging are deductible as the day-to-day costs of producing income ^[4] , and because Singapore has no GST-free food category, the wholesaler’s invoice carries 9% on every line ^[2] . The input tax is claimable when the ordinary conditions are met: you are GST-registered, the purchase is for your business, and it is supported by a tax invoice addressed to you or a simplified tax invoice where the value including GST is not more than $1,000 ^[1] . Supermarket runs on a staff member’s card are the weak point; a till receipt with the supplier’s GST registration number is a valid simplified tax invoice, a bare card slip is not.

GST on what you sell, service charges and tips

A GST-registered business charges and accounts for 9% on all sales of goods and services in Singapore unless a specific zero-rating or exemption applies ^[2] , and nothing on a restaurant menu qualifies. The service charge follows the meal: IRAS treats the service charge, typically 10%, as part of the total price for the goods and services provided, so the GST is calculated on the total payable including it ^[6] . Prices on menus, boards, advertisements and verbal quotes must be GST-inclusive, and where both figures are shown the GST-inclusive price must be at least as prominent; failing to comply is an offence with a fine of up to ,000 ^[6] . Businesses may round the final bill to the nearest five cents for cash payment ^[6] .

The F5 return itself is covered in the GST F5 filing guide, registration and the rate history in the Singapore GST guide, and the GST calculator extracts the 9% from a GST-inclusive figure and applies the right rate to a receipt dated before 2024.

Wages, CPF, levies and medical costs

Salaries, bonuses and allowances are deductible, as are the employer’s statutory CPF contributions and the Skills Development Levy ^[4] . From 1 January 2026, for employees earning more than $750 a month, the employer contributes 17% of wages for staff aged 55 and below, 16% above 55 to 60, 12.5% above 60 to 65, 9% above 65 to 70 and 7.5% above 70 ^[7] ; the CPF Board has announced a further increase to the senior rates from 1 January 2027 ^[7] . The Skills Development Levy is 0.25% of each employee’s monthly wages, with a minimum of $2 for an employee earning less than $800 a month and a maximum of $11.25 for one earning more than $4,500 ^[8] . Foreign workers on Work Permits and S Passes do not attract CPF; they attract levies set by the Ministry of Manpower by sector and tier, which are a deductible cost of employing them ^[4] .

Medical expenses for employees are deductible as long as they are capped at 1% of the total employee remuneration accrued for the year, rising to 2% if the company implements a Portable Medical Benefits Scheme, a Transferable Medical Insurance Scheme or portable inpatient medical shield plans ^[5] . The GST on staff medical expenses is disallowed under Regulation 26 unless the expense is obligatory under the Work Injury Compensation Act or a collective agreement, or is required by the nature of the work; first aid kits and their replenishment are claimable ^[1] . A transport allowance paid to staff is deductible to you and taxable to them as employment income ^[5] .

Staff meals, functions and benefits

Staff welfare and benefits sit on IRAS’s list of deductible expenses ^[4] , so the family meal before service, the late-night supper for staff closing the month and the annual dinner and dance are deductible business costs, and there is no employer-side fringe benefits tax to calculate. The GST on them is claimable under the ordinary conditions, with two specific blocks: Regulation 26 disallows input tax on benefits provided to the family members or relatives of your staff, and on club subscription fees charged by sports and recreation clubs, including joining, membership and transfer fees ^[1] . A staff dinner at a hotel claims its GST in full; a dinner for staff and their families claims only the staff share; a year of membership at a members’ club with dining rights claims nothing ^[1] .

Client entertainment

A client lunch, a supplier dinner or a tasting for a prospective corporate account is deductible when it is incurred wholly and exclusively in the production of income; what IRAS excludes is entertainment not fully related to the running of the business, which it treats as a personal expense ^[4] . Input tax on entertainment expenses is claimable with a tax invoice addressed to you or, for bills of $1,000 or less including GST, a simplified tax invoice ^[1] . For entertainment over $1,000, IRAS accepts by administrative concession a receipt that contains all the information required in a simplified tax invoice, provided you also keep alternative documentary payment evidence and the entertainment details: the name of the person entertained, the purpose of the entertainment and the person incurring the expense ^[1] . The business meals guide has worked examples.

Rent, utilities and outgoings

Rent, utilities and gas are the ordinary day-to-day costs IRAS describes as revenue expenses ^[4] , and a GST-registered landlord or retailer charges 9% that you claim from the tax invoice ^[1] . A rental deposit is not an expense until it is forfeited; it sits as an asset while the landlord holds it. Reinstatement costs to return the premises to their original condition at the end of the tenancy are deductible ^[4] .

Licences, permits and fines

The licences an F&B outlet needs, from the Singapore Food Agency’s food shop licence to the liquor licence and outdoor refreshment area permits, are regulatory fees paid to government agencies: deductible running costs with no GST to claim. Statutory fines and penalties are not deductible ^[4] , so a fine for a hygiene breach or a late filing is a cost with no tax relief.

Delivery platforms, software and payment fees

Delivery platform commissions, online ordering fees, reservation systems, rostering and POS subscriptions and card terminal hire are ordinary costs of earning income ^[4] . On GST, claim only what a valid tax invoice shows ^[1] . Software and platforms billed from overseas may carry no Singapore GST at all; under the reverse charge a GST-registered business that is not entitled to full input tax recovery accounts for the GST itself, and the Singapore GST guide covers when that applies. Bank charges and card processing fees are deductible; claim GST on them only where the statement shows it.

Kitchen equipment, renovation and repairs

Commercial ovens, fridges, cool rooms, coffee machines, dishwashers and furniture are plant and machinery, and the company claims capital allowances on their cost in a schedule submitted with its return ^[3] . You choose the method: a 100% write-off in 1 year for low-value assets costing not more than $5,000, with the total 1-year claim for low-value assets capped at $30,000 per year of assessment, a write-off over 3 years, or a write-off over the asset’s prescribed working life ^[3] . An asset on hire purchase qualifies on the instalments paid in each year ^[3] .

Renovation and refurbishment of the premises is different. Qualifying R&R expenditure is deductible under Section 14N, capped at $300,000 for every relevant 3-year period, and is claimed over 3 consecutive years of assessment starting from the year the expenditure is incurred, a third in each ^[5] . Budget 2024 announced changes to ease the claim, so check the current IRAS page before filing. Repairs that restore an item are ordinary deductible costs ^[4] ; a new kitchen is capital. The GST on equipment, renovation and repairs is claimable in the ordinary way ^[1] , and the equipment guide has the capital allowance mechanics.

Uniforms, laundry, cleaning and pest control

Uniforms and their laundering are staff welfare and a cost of running the venue, deductible under the ordinary test ^[4] , with the 9% claimable from the supplier’s tax invoice ^[1] . Cleaning contracts, pest control, grease trap servicing and waste collection are the same. The expense policy template has the clauses for staff who buy their own.

Vehicles, delivery and transport

Motor vehicle expenses on S-plate private cars and on Q-plate and RU-plate business cars registered on or after 1 April 1998 are not deductible, even when the car is used for business and even when the cost is reimbursed ^[5] ; capital allowances cannot be claimed on those cars ^[3] ; and Regulation 27 disallows the input tax on their purchase and running costs ^[1] . Goods and commercial vehicles such as vans, lorries and buses, and motorcycles, are the opposite on every count ^{[3] [5]} , and the COE of a commercial vehicle is added to its cost for capital allowances ^[4] . Payments for transportation services, where someone else carries you without you controlling the car, are deductible ^[5] , and since 1 April 2022 the input tax on pay-per-trip chauffeured private hire car services is claimable with a tax invoice or simplified tax invoice ^[1] . The vehicle expenses, vehicle purchase and travel guides have the detail.

GST return, records and year end

Every input tax claim rests on a valid tax invoice or simplified tax invoice held at the time of claiming ^[1] , and the entertainment details (who, why and the host) sit behind every meal claim over ,000 ^[1] . Business records are kept for five years, as the Singapore record-keeping guide sets out; the GST F5 guide and the tax deadlines calendar carry the filing dates, and the year-end checklist walks the close, including the capital allowance schedule and the Section 14N claim.

Common mistakes

• Claiming GST on a card slip or a bare receipt with no supplier GST registration number ^[1] .
• Calculating GST on the food alone and leaving the service charge out of it ^[6] .
• Displaying GST-exclusive prices on the menu or the board ^[6] .
• Claiming the GST on a staff dinner that included family members, or on a club membership ^[1] .
• Deducting staff medical costs above the 1% cap, or claiming their GST ^{[1] [5]} .
• Claiming a company car’s petrol, parking or GST ^{[1] [5]} .
• Running a $4,000 renovation bill through capital allowances when it is Section 14N, or a $4,000 oven through Section 14N when it is plant ^{[3] [5]} .
• Claiming no GST on an overseas software subscription instead of accounting for the reverse charge.
• Losing a $1,000-plus entertainment claim for want of the who, why and host ^[1] .
• Reimbursing staff for using their own cars and expecting a deduction ^[5] .