It now costs 7 per cent more to dine in at Orange & Teal.
The cafe, owned by Singapore Democratic Party (SDP) leader Chee Soon Juan, now charges GST at both its outlets.
Orange & Teal first opened at Rochester Mall in June 2021, followed by a quick service concept at Marina Square in August 2022.
Chee previously said that he will not impose a service charge as to promote a tipping culture, where the money is shared with kitchen crew.
He added that were was no GST either.
In mid-September 2022, however, a Google reviewer highlighted that they've had to pay for GST when they dined in at the Rochester Mall outlet.
However, the review has since been made unavailable.
When Mothership reached out to the cafe, a spokesperson said Orange & Teal is now a GST-registered outlet and they have to pay GST under the "current policy".
The spokesperson did not elaborate on the specific policy, but revealed that the charge started on Aug. 3, 2022.
When do businesses have to register for GST?
Under Inland Revenue Authority of Singapore (IRAS), companies have to register for GST if their taxable turnover is:
More than S$1 million at the end of the calendar year, or
Expected to be more than S$1 million in the next 12 months
Businesses that do not register on time face "serious consequences", IRAS warned.
Besides having to pay for GST from past sales, they may also be liable for a fine of up to S$10,000 and a penalty equal to 10 per cent of the GST due.
Prosecution action may apply as well.
However, late submitters who voluntarily disclose their tardiness will generally have their fines and penalties waived, the website added
https://mothership.sg/2022/09/orange-and-teal-gst/
