F&B Accounting in Singapore: GST, Tax and Close Checklists for Restaurants and Cafes
F&B accounting in Singapore comes down to three routines: close the POS and the cash every day, record delivery-platform orders at their full price with the commission as a cost, and reconcile stock, payroll and GST every month. Around them sit the sector's tax rules, from GST on service charge and CPF on shared service charge to section 14N deductions for renovation.
This guide to restaurant accounting in Singapore is for owners and bookkeepers of restaurants, cafes, bars and caterers; amounts are in Singapore dollars as at November 2026. In a cash business, mistakes compound: weak records let IRAS estimate your revenue, and delivery sales booked net can hide that you have crossed the $1 million GST threshold.
Key takeaways
- Service charge is part of the price: with 9% GST, $100 of food plus a 10% service charge comes to $119.90.
- Book delivery orders gross, with the platform's commission as an expense.
- Outlets add up: a company counts all its outlets for the $1 million GST test, and IRAS may disregard a split across entities made to stay below it.
- Renovation is deductible under section 14N on up to $300,000 per fixed three-year period (now YA 2025 to YA 2027); kitchen equipment gets capital allowances.
- Staff: CPF applies to service charge and tips shared through wages, and since 1 July 2026 firms hiring foreign workers must pay full-time local waiters at least $2,320 a month.
Table of Contents
- Daily Close Checklist for F&B Accounting in Singapore
- How Should Restaurants Record Each Sales Channel?
- GST Rules for Restaurants and Cafes
- How to Control Food Cost and Wastage
- Manpower Costs and CPF for F&B Staff
- Can Restaurants Claim Renovation Costs for Tax?
- Licences and Grants for F&B Businesses
- Month-End Close Checklist and KPIs
- Common F&B Accounting Mistakes
- When Should a Restaurant Get an Accountant?
- Frequently Asked Questions
- Official Sources
Daily Close Checklist for F&B Accounting in Singapore
Most errors start at the till. IRAS's Record Keeping Guide says that if you use a cash register, every cash sale must be recorded in it and the tape kept, and it recommends recording the day's cash total. If your records cannot support your figures, IRAS may estimate your revenue and impose penalties of up to $5,000. Run this close daily, per outlet:
- Close each POS terminal. Export the end-of-day (Z) report and check that its number follows the previous day's, with no gaps.
- Count the cash with a second person. Deduct the float, compare the cash with POS cash sales and record any over or short with a reason.
- Match card, PayNow and e-wallet totals to the terminal settlement reports.
- Review voids, refunds, discounts and complimentary items. Each needs a manager's approval and a reason.
- Capture delivery orders in the POS or merchant portal at their full menu price.
- Log wastage and staff meals in the kitchen.
- Bank the cash intact. IRAS's guide recommends banking all receipts and paying expenses digitally, so pay suppliers and staff by transfer and small expenses from a petty cash float, never from the till.
- File the day's records together: the Z report, cash count sheet, settlement slips and logs.
Then post one summary journal per outlet per day from the Z report, splitting food, beverages, service charge and GST, with card sales in a clearing account; anything left in it at month end is a missing deposit or an unrecorded fee. If you would rather hand over the cafe bookkeeping, see our bookkeeping service.
How Should Restaurants Record Each Sales Channel?
Treat the POS as the record of what you sold and the bank as the record of what you received, and reconcile them channel by channel.
| Channel | Record as sales | Watch out for |
|---|---|---|
| Dine-in | Food, drinks and service charge, after discounts | Service charge shared with staff is a wage cost |
| Takeaway and own delivery | The price charged, including your delivery fee | If GST-registered, takeaway-only items must show GST-inclusive prices |
| Delivery platforms | What customers paid for your food, after discounts you funded | Commission is an expense; the platform's delivery fees are not your revenue |
| Catering and events | The invoiced amount | Part-payment deposits are taxable when received |
| Vouchers and gift cards | Nothing until redeemed: hold a liability | GST timing depends on the voucher type |
Delivery Platform Sales and Commission
The payout is the smallest number on a platform statement, not your sales. Under IRAS's e-commerce guidance, a GST-registered local platform charges GST on its own commission and service fees, while you account for GST on the food you sell. A hypothetical week for a GST-registered restaurant:
| Weekly platform statement | Amount |
|---|---|
| Orders at menu prices (GST-inclusive) | $5,450.00 |
| Less: discounts you funded | ($545.00) |
| Paid by customers for your food | $4,905.00 |
| Less: commission of $1,000 plus 9% GST | ($1,090.00) |
| Payout to your bank | $3,815.00 |
Record sales of $4,500 ($4,905 × 100/109) with output tax of $405, and commission of $1,000 with input tax of $90, claimable with the platform's tax invoice. Booking the payout as sales would show $3,500, leaving $1,000 a week ($52,000 a year) out of revenue. The net GST may match, but your margins, GST return boxes and turnover for the $1 million test would be wrong. A platform-funded promotion that still pays you the full menu price does not reduce your sale; the same logic applies to e-commerce sellers.
Vouchers and Gift Cards
A gift card usable on anything on your menu is a multi-redemption voucher. If you track redemptions and sell it at or below face value, GST is due on redemption, or at 9/109 of any balance left at expiry, rather than on sale; if you cannot track redemptions, it is due on the full amount at sale. A voucher for a specific item, such as a set lunch for two, is taxed when sold.
GST Rules for Restaurants and Cafes
Service Charge, GST and the ++ Sign
Once you are GST-registered, IRAS treats service charge as part of the price, so a $250 dinner with a $25 service charge attracts GST of $24.75 (9% of $275), making $299.75. Whether customers must pay a service charge depends on your agreement with them.
GST-registered outlets must show GST-inclusive prices, but those imposing a genuine service charge may show GST-exclusive ('++') prices with a prominent statement that prices are subject to GST and service charge. A nominal service charge levied only to avoid GST-inclusive pricing does not qualify, and items sold only for takeaway or delivery must be priced GST-inclusive. Breaches can lead to a fine of up to $5,000.
Staff Meals, Freebies and Other Charges
- Staff meals: no output tax is due on food and drinks catered for employees.
- Free items: a free dessert with a meal or a buy-one-get-one-free deal is part of a package, so GST is due only on what the customer pays. Other gifts attract output tax only above $200 per person per occasion, before GST, where you claimed input tax.
- No-show and cancellation charges are subject to GST.
- BCRS deposits: the 10-cent deposit on pre-packaged drinks in plastic or metal containers (150 ml to 3 litres), in place since 1 April 2026, carries no GST and stays out of the GST return, so set it up as a separate non-GST item in your POS.
Multiple Outlets and the GST Threshold
Registration is compulsory when taxable turnover, including service charge and gross delivery sales, exceeds $1 million in a calendar year or is expected to exceed it in the next 12 months. A company counts all its outlets. A sole proprietor's businesses are combined, as are those of partnerships with the same partners. If a business is split across entities to keep each under $1 million, IRAS may disregard the arrangement and register the whole business.
Example: a company's three outlets make $450,000, $380,000 and $260,000 in 2026, a total of $1,090,000, so it must apply by 30 January 2027 and is registered from 1 March 2027. If a new outlet makes it reasonable to expect over $1 million in the next 12 months, it must apply within 30 days of that forecast.
Late registration is backdated, so GST is due on past sales even if you never charged it, with a possible fine of up to $10,000 and a penalty of 10% of the GST due. IRAS generally waives these if you disclose the lateness when you apply.
InvoiceNow for Restaurants
InvoiceNow will reach existing GST-registered businesses in phases from 1 April 2028 to 1 April 2031, depending on annual supplies, with the legislation still to be enacted; voluntary registrants applying from 1 April 2026 must comply from the start. Point-of-sale sales, simplified tax invoices and petty cash purchases can be sent in aggregate; other supplier invoices and full tax invoices, such as for catering, go individually. See our InvoiceNow guide.
How to Control Food Cost and Wastage
Work out food cost monthly from a stock count, not from purchases alone. Food cost is opening stock plus purchases minus closing stock; divide it by food sales before GST and service charge.
| Food cost for March (hypothetical) | Amount |
|---|---|
| Opening stock | $8,000 |
| Add: purchases | $42,000 |
| Less: closing stock (31 March count) | ($9,500) |
| Food cost | $40,500 |
| Food sales before GST and service charge | $135,000 |
| Food cost % | 30.0% |
If your recipe costings say the dishes sold should have used $37,800 of ingredients (28.0%), the $2,700 gap is wastage, staff meals, comps, over-portioning, price rises, unrecorded sales or theft; the daily logs explain the first three. IRAS's record-keeping guide expects a physical stock count at the end of each accounting period. Count monthly, with seafood and alcohol weekly.
Wastage stays in cost of sales; obsolete stock written off is deductible, but a general provision is not. Food the owner takes home is not a business expense, and if you claimed input tax on it, include its market value in your standard-rated supplies and account for output tax.
Manpower Costs and CPF for F&B Staff
| Item | What applies in 2026 |
|---|---|
| Employer CPF | 17% (employee 20%) for Citizens, and PRs from their third year, aged 55 and below earning over $750 a month; payable on wages above $50 a month, part-timers included |
| Skills Development Levy | 0.25% of wages, $2 to $11.25 per employee a month, for all staff including foreign workers |
| Foreign worker levy | $300 to $800 per Work Permit holder a month in the Services sector, deductible after any rebate |
| Service charge or tips shared with staff | Wages for CPF |
| Free staff meals | No CPF, and not taxable if most staff get them |
| Cash meal allowance | A fixed monthly allowance attracts CPF and is taxable; ad hoc overtime meal claims under an all-staff policy attract neither |
Pay CPF by the 14th of the following month to avoid enforcement action and late payment interest of 1.5% a month. Statutory CPF, SDL and levies are deductible; voluntary CPF and late payment interest are not.
Food Services PWM. If you hire foreign workers, your Citizen and PR staff at SFA-licensed premises are covered by the food services Progressive Wage Model, and meeting it is a condition for new and renewed work passes. From 1 July 2026, full-time minimums include $2,320 a month for a waiter or full-service kitchen assistant and $2,520 for a full-service cook, rising again in July 2027 and July 2028, plus two WSQ modules for most roles. Other full-time local staff must earn at least the $1,800 Local Qualifying Salary (part-timers $10.50 an hour).
Quota and licence. Restaurants, coffee shops and food courts hire under the Services sector (quota 35%), but only SFA Food Shop Licence holders may employ migrant workers, and MOM does not accept a licence in an individual's name for a Pte Ltd or LLP. Owner-directors should read our guide to director salary vs dividends before setting their pay.
Can Restaurants Claim Renovation Costs for Tax?
Yes. Section 14N of the Income Tax Act 1947 lets you deduct qualifying renovation and refurbishment (R&R) works over three YAs, or in one YA by irrevocable election, up to $300,000 per fixed three-year period (now YA 2025 to YA 2027). Kitchen equipment is plant and machinery, so it gets capital allowances instead, and repairs with no improvement are ordinary expenses.
Example: Cafe B Pte Ltd, incorporated in January 2026 with a 31 December year end, opens on 1 March 2026, so its first YA is YA 2027.
| Fit-out cost | Amount | Tax treatment |
|---|---|---|
| Wiring, lighting, flooring, false ceiling, kitchen sinks and piping | $150,000 | Section 14N |
| Interior designer's fees (non-structural) | $12,000 | Section 14N |
| Structural works needing Building Control approval | $40,000 | Not section 14N |
| Commissioned artwork | $6,000 | Not section 14N (fine art) |
| Combi oven, chillers and dishwasher, each over $5,000 | $48,000 | Capital allowances over three years |
| Smaller items, each $5,000 or less | $14,000 | Low-value assets, one YA (cap $30,000 a YA) |
| POS computers and software | $4,000 | 100% in one YA |
For YA 2027, Cafe B claims $54,000 of R&R (a third of $162,000), $16,000 on the large equipment, $14,000 on low-value assets and $4,000 on the POS: $88,000 in total. Electing to take all the R&R in YA 2027 raises this to $196,000, which helps only if profits can absorb it; any excess becomes a trade loss carried forward, subject to the shareholding test.
- Pre-opening works are treated as incurred on your first day of business and must be claimed in that YA; R&R not claimed in the YA it is first incurred is lost.
- One cap covers all your outlets: the $300,000 limit applies to the taxpayer, not to each premises (one cap per partnership, and one per sole proprietor however many trades they run).
- Keep an itemised list of works and costs with the premises address, confirmation that no Building Control approval was needed, and the invoices.
Other F&B Tax Deductions in Singapore
Reinstatement costs when you leave leased premises are deductible, as are upfront lease costs such as agent's commission and stamp duty (subject to section 14ZE), and licence renewals. A new company can also deduct revenue costs, such as pre-opening wages and marketing, incurred within one year before it starts business. Add back depreciation, fines, private expenses and S-plated car costs. Our guide to deductible expenses has more.
Licences and Grants for F&B Businesses
Restaurants, caterers, coffee shops and canteens need an SFA Food Shop Licence ($195 a year, renewed automatically if you pay by GIRO). A stall inside a coffee shop or food court needs a Food Stall Licence ($32 a year), and selling alcohol needs a Singapore Police Force liquor licence under the Liquor Control (Supply and Consumption) Act 2015, all applied for on GoBusiness. SFA reviews a complete Food Shop Licence application within 7 working days, renovation can start once it approves, and documents such as the URA or HDB approval and the stamped tenancy agreement are due within 2 months.
| Scheme | What it offers (October 2026) | Tax treatment |
|---|---|---|
| SME Cash Grant 2026 | $500 per local employee with CPF paid on time (peak monthly headcount, April to June 2026), up to $2,500; paid automatically from 2 November 2026 | Taxable |
| Energy Efficiency Grant | Up to 70% of the cost of pre-approved energy-efficient equipment for SMEs, capped at $30,000, until 31 March 2028; apply before the project starts | Not on IRAS's list; under IRAS's capital-grant rule it should not be taxable, with no allowances on the funded part |
| EDGE Grant | Replaced the PSG, EDG and MRA on 30 September 2026; generally up to 50% for SMEs, capped at $100,000 a year; apply before paying any deposit | Not yet listed by IRAS; the revenue-or-capital test applies |
| Progressive Wage Credit Scheme | 30% of qualifying 2026 wage increases for local staff earning up to $3,000 a month, paid in early 2027 | Taxable |
| Senior Employment Credit | Up to 7% of the wages of Citizen staff aged 60 and above earning under $4,000 a month | Taxable |
Month-End Close Checklist and KPIs
Finish the month-end close within two weeks, in time to pay CPF by the 14th.
- Reconcile every bank account to the daily closes, clear the card clearing account and post card fees.
- Reconcile each delivery platform from gross orders through discounts, commission, fees and refunds to the payouts, and file its tax invoices.
- Count and value stock of food, drinks and packaging.
- Run payroll and accruals: wages, CPF, SDL, levies, service charge shared with staff and bills not yet received.
- Reconcile vouchers and deposits, including GST on expired vouchers.
- Split new spending into R&R, equipment and repairs.
- Check GST if registered, and file the GST F5 on myTax Portal within one month of each quarter end.
- Produce a P&L and KPIs per outlet against last month and budget, then chase cash shortages, food cost gaps and unreconciled items.
| KPI | How to calculate | Common rule of thumb |
|---|---|---|
| Food cost % | Food cost ÷ food sales before GST and service charge | 28% to 35% |
| Labour cost % | Wages, CPF, levies and benefits ÷ sales | 25% to 35% |
| Prime cost % | Food, beverage and labour costs ÷ sales | 65% or less |
| Delivery cost rate | Commission, fees and discounts you funded ÷ gross platform sales | Compare platforms |
Treat these as trade rules of thumb, not official benchmarks, and compare each outlet with its own history first. For monthly reports by outlet, see our management accounts service.
Common F&B Accounting Mistakes
- Booking delivery payouts as sales, which hides commission and understates turnover.
- Adding GST to bills before you are registered. IRAS has said it is prepared not to penalise unregistered businesses that collected GST if they make a voluntary disclosure.
- One renovation account for everything, mixing section 14N works, equipment, repairs and structural works.
- Splitting outlets across companies to stay under $1 million.
- Sharing service charge in cash outside payroll, leaving CPF unpaid.
When Should a Restaurant Get an Accountant?
A single stall or small cafe with one bank account, a POS that exports daily reports and turnover well under $1 million can keep its own books in cloud software and get help once a year with the annual cycle: ECI within three months of year end (waived when revenue is $5 million or less and ECI is nil), Form C-S or C by 30 November, the ACRA annual return within seven months of year end and IR8A or AIS by 1 March. Get help sooner if you run several outlets, are near $1 million or already GST-registered, depend on delivery platforms, are planning a fit-out or employ foreign workers.
Tax Filing SG is run by ex-Big 4 Singapore Chartered Accountants (ISCA members). See our accounting services; we quote once we have seen your outlets, sales channels and records.
Frequently Asked Questions
Is service charge subject to GST in Singapore?
Yes. IRAS treats service charge as part of the price, so a GST-registered restaurant charges 9% GST on the food and the service charge together. On $100 of food with a 10% service charge, GST is 9% of $110, or $9.90, making $119.90. Service charge also counts toward taxable turnover for the $1 million registration test.
How should restaurants record GrabFood sales?
Record each order as a sale at the full amount the customer paid for your food, after any discount you funded. Record the platform's commission and fees as an expense, claiming the GST on them as input tax if you are GST-registered and hold the platform's tax invoice. Then match each payout to your bank. Recording only the payout understates revenue.
Are staff meals taxable?
Usually not. Under an IRAS concession, free food that most staff enjoy is not taxable employment income, and meals given in kind do not attract CPF. A GST-registered business does not account for output tax on food catered for employees. A fixed monthly meal allowance paid in cash is different: it is taxable and attracts CPF.
What is a good food cost percentage?
A commonly used rule of thumb in the restaurant trade is 28% to 35% of food sales before GST and service charge. It is not an official or Singapore-specific benchmark, and premium-ingredient concepts often run higher. The more useful test is the gap between your actual food cost and the theoretical cost from your recipe costings, and whether it is growing.
Is CPF payable on service charge shared with staff?
Yes. CPF Board lists service charge that restaurants collect and distribute to employees as part of their wages as a payment that attracts CPF, and treats tips collected from customers to add to staff wages the same way. Pay both through payroll and include them when calculating CPF for Singapore Citizen and PR staff.
Should a small cafe register for GST voluntarily?
Usually not, if most of your customers are consumers. Registering means adding 9% GST to prices or absorbing it, and consumers cannot claim it back; the gain is recovering GST on your fit-out, equipment and supplies. Voluntary registrants must stay registered for at least two years, set up GIRO and, if they apply from 1 April 2026, use InvoiceNow from the start.
How long must an F&B business keep POS records?
At least five years. IRAS requires companies to keep records for five years from the relevant Year of Assessment for income tax, and five years from the end of the accounting period for GST. Keep Z reports or register tapes, receipts, platform statements, bank statements and supplier invoices. If your records cannot support your figures, IRAS may estimate your revenue.
Official Sources
- IRAS: GST for hotels and F&B businesses
- IRAS: Do I need to register for GST?
- IRAS: GST on vouchers
- IRAS: GST on employee fringe benefits
- IRAS: Section 14N renovation e-Tax Guide (PDF)
- IRAS: Record Keeping Guide for GST-registered businesses (PDF)
- CPF Board: Which payments attract CPF contributions (PDF)
- MOM: Food services Progressive Wage Model
Want your restaurant's books, GST and payroll kept in order?
Send us your POS reports, delivery platform statements or IRAS letter on WhatsApp, and a Singapore Chartered Accountant will tell you what needs to be fixed or filed and our fee for your case before you commit.
About Tax Filing SG — We are a Singapore accounting practice run by ex-Big 4 Singapore Chartered Accountants (ISCA). We handle accounting, corporate tax, GST and company secretarial work for Singapore SMEs, including overdue and late filings.
Last updated: 9 November 2026. This article is general information based on IRAS and ACRA guidance as at November 2026, not advice for your specific situation. Rules, rates and deadlines change, so check the official sources above or speak to us before acting.