What is GST and service charge in Singapore?
When you buy something in Singapore, you almost always pay more than the stated price.
That's all thanks to GST and service charge, which is 7% and 10% of the item's retail price, respectively, payable when you get handed the bill at most restaurants and hotels.
In some places, GST may already be factored into the price on the menu, while others may choose to add a “++” at the back of the cost to signify these charges.
Singapore will raise its GST to 8% in 2023 and then to 9% in 2024.
See also: What You Should Know About GST Increase 2023
Who says you need to break your bank when you're out dining? Choosing the right dining credit card for all your favourite food spots helps you beat the GST hike while still enjoying these finer things in life.
Off the top of our heads, these are some of our top dining credit card recommendations:
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Credit card
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Rebate earn rate
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Details
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Maybank Family & Friends Card
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8% cashback on dining and food delivery
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Min. S$800 monthly spend
S$25 cashback cap (per statement month) 3-year annual fee waiver |
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UOB EVOL Card
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8% cashback on dining and food delivery paid via online or mobile contactless spend
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Min. S$600 monthly spend
S$20 cashback cap per category (per statement month) |
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OCBC 365 Card
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6% cashback on dining
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Min. S$800 monthly spend
S$80 cashback cap per month 2-year annual fee waiver |
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Citi Rewards Card
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10X Rewards Points (4 mpd) on dining and food delivery via online spend
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10X Rewards Points consists of:
- 1 base point
- 9X bonus points
S$1,000 spend cap / 9,000 Bonus Point cap + XX Base Point cap* (per statement month)
*Base points have no cap
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HSBC Revolution Card
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10X Rewards Points (4 mpd) on dining and food delivery via online or mobile contactless spend
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S$1,000 spend cap (per statement month)
10X Rewards Points consists of: - 1 base point - 9X bonus points Calculations for 10X Rewards Points are rounded down to the nearest point |
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UOB Lady's Card
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UNI$10 per S$5 (4 mpd) on dining
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Must choose dining as preferred 10X category
S$1,000 spend cap (per calendar month)
Equivalent to 2X UNI$ per S$1 spend:
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How to calculate service charge and GST from your total bill
Forget online GST and service charge calculators. All you need to remember is this formula: x 1.188.
To calculate the price of
- GST (8%) only: Price x 1.08
- Service charge (10%) only: Price x 1.10
- GST (8%) and service charge (10%): Price x 1.188
Common mistakes made by Singaporeans when calculating GST and service charge
Singaporeans often multiply their meals by 1.18 (118%), which is wrong. Yes, the difference may be small compared to multiplying by x1.188, but these differences can add up to a significant amount over the years.
The reason why you have to multiply it by x1.188? As the service charge is taxable, you will have to add the 10% service charge to your item first before it is subject to 8% GST.
Hacks on how to save on GST and service charge
If you live in Singapore, you should know by now that GST and service charges after meals can cost quite a pretty penny. It is often an unpleasant surprise when you spend only S$40, and the GST and service charge comes up to an additional S$7.52 — that’s a whole meal with drinks at a hawker centre (possibly with change)!
If you’re looking to feast on a budget, check out your neighbourhood kopitiams, AKA coffee shops, or hawker centres, as their prices are generally stated as nett.
If you want to go to a restaurant, you can also choose to dine at places that are free of GST and service charges such as Peperoni Pizzeria and Nam Nam Noodle Bar.
Additionally, look out for signs at restaurants or hotels with the word “nett” after their price.
But enough about dining, what credit cards are good for satisfying your retail therapy urge? Whether it's online or in physical stores, these are the shopping credit cards that we simply adore.
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Credit card
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Rebate earn rate
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Details
|
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UOB EVOL Card
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8% cashback on shopping transactions via online or mobile contactless spend
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Min. S$600 monthly spend
S$20 cashback cap per category (per statement month) |
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CIMB Visa Signature Card
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10% cashback on online spend
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Min. S$800 monthly spend
10% cashback consists of: - 0.2% base cashback - 9.8% bonus cashback S$20 cashback cap for each category (per statement month) |
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Citi Rewards Card
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10X Rewards Points (4 mpd) on online shopping
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S$1,000 spend cap / 10,000 Point cap (per statement month)
10X Rewards Points consists of:
- 1 base point
- 9X bonus points
Calculations for 10X Rewards Points are rounded down to the nearest point |
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UOB Lady's Card
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UNI$10 per S$5 (4 mpd) on either fashion, beauty & wellness, or entertainment
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Can only choose 1 category as preferred 10X category at a time:
- Fashion - Beauty & Wellness - Entertainment S$1,000 spend cap (per calendar month)
Equivalent to 2X UNI$ per S$1 spend:
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OCBC Titanium Rewards Card
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50 OCBC$ per S$5 (4 mpd) on online and departmental store spend
Bonus: E-commerce protection |
120,000 bonus OCBC$ cap (per year)
OCBC$ points are awarded per S$5 blocks 50 OCBC$ per S$5 consists of: - 5X base points - 45X base points on eligible merchants 1 Mar 2023: Amazon and Mustafa Centre will no longer qualify for bonus 10 OCBC$ if they fall under MCC 5411 (Grocery stores, supermarkets)
Eligible MCCs & rewards T&Cs Card T&Cs |
Read these next:
6 A La Carte Buffets To Enjoy in Singapore (2023)
Dim Sum Promotions And Deals in Singapore (2023)
High Tea Promotions In Singapore (2023)
1-for-1 Buffet Dining Promotions In Singapore (2023)
Beat the GST Hike by Earning Up to 7.65% + 2% p.a. on Savings
Singapore Budget 2023: GST Vouchers & Household Support
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