General
1. Who is subjected to the Formula One (F1) Cess?
All tourist hotels are subject to the F1 Cess. Tourist hotels include all hotels previously gazetted for purposes of collecting Cess under the Singapore Tourism (Cess Collection) Act. New hotels deemed to be tourist hotels will also be required to make a contribution via the F1 Cess.
2. Do I need to register my hotel for the F1 Cess? How do I register for the F1 Cess?
You are automatically registered for F1 Cess, once your hotel is gazetted under the Singapore Tourism (Cess Collection) Act. Accordingly, thereupon as a gazetted hotel, you are required to pay the F1 Cess.
3. Are there any forms that I need to submit? How do I submit my forms?
You are required to submit the F1 Cess Payment Form to STB. To download the form, please click here.
4. What is the submission deadline for the F1 Cess Payment Form and payment?
The F1 Cess Payment Form and F1 Cess payment are to be submitted within two months after the end of the F1 event i.e. by 22 November 2013.
5. How do I pay the F1 Cess? Who do I pay the F1 Cess to?
Kindly issue a crossed cheque payable to Singapore Tourism Board, and write the name of your hotel and Cess Reference Number on the reverse side of the cheque.
The cheque accompanied by your F1 Cess Payment Form should be sent to:
Singapore Tourism Board 1 Orchard Spring Lane Tourism Court Singapore 247729
Attn: Financial Operations Department – AR Section (F1 Cess)
Please note that STB does not accept post-dated cheques. No receipt will be issued for cheque payment. Do ensure that your cheques reach us by the due date to avoid a late payment penalty.
6. What is the penalty for paying late or not paying F1 Cess?
A penalty equal to 5% of the F1 Cess shall be payable after 22 November 2013. If the F1 Cess outstanding is not paid within 60 days of the imposition of the penalty, an additional penalty of 2% of the F1 Cess shall be payable for each completed month that the F1 Cess remains unpaid commencing 22 November 2013. The total additional penalty shall not exceed 50% of the amount of F1 Cess outstanding.
Rates of F1 Cess
7. How many room nights does the F1 Cess cover and for which period?
The F1 Cess is applied on a period of four days – from Thursday, 19 September to Sunday, 22 September 2013, both dates inclusive.
8. What are the F1 Cess rates? Why are there different levels of contribution for different hotels?
The F1 Cess rates are 30% of the total room revenues for trackside tourist hotels, and 20% of the total room revenues for all other tourist hotels.
Hotels at different locations are likely to benefit to varying extents. For instance, hotels that have a view of or are in close proximity to the race track should be able to command a much higher room rate than the other hotels. Hence, it is deemed reasonable for these trackside hotels to make a contribution towards the staging of the race.
9. Will the Cess be imposed on rooms that have been sold during this period but have not yet been paid for? What about pre-collected room revenues, for e.g. in the event of “no shows”?
Yes, all rooms sold during this period are subjected to the F1 Cess.
This includes
1) Rooms that have not been paid for (e.g., on credit terms),
2) Rooms where payment was pre-collected, and
3) Rooms where an amount was charged for cancellation or “no-show”.
Thus, all room revenues collected or are accruable to rooms sold during this period must be reported as paid lettings.
10. Will the hotels be taxed for early check-in and late check-out?
Only rooms sold during the F1 Cess period (i.e. 19 – 22 September 2013) will be subjected to the F1 Cess and this includes early check-in and late check-out during this period. However, early check-in and late check-out which falls outside the period will not be subjected to the F1 Cess.
11. Will the F1 Cess payment be refunded to the hotels if there are cancellations of room bookings? What is the validity period for refunds? Who do I submit the refund request to?
Yes, refunds will be made with proper documentation evidence. The window period for refunds is up to one year of the end of the event i.e. by 22 September 2014. Please submit any refund request to STB.
For example, non trackside tourist hotel cost S$100 per room night excluding GST. If the cancellation entitles the hotel to charge the guest 40%, the amount that can be refunded to hotel is S$100 x 60% x 20% = S$$12.
12. Why is there a need to provide information for 16, 17, 18, 23 & 24 September 2013 since F1 Cess is not levied on the revenue earned on these days? [Note: Race days are from Friday to Sunday, 20 to 22 September 2013. But F1 levy period for 2013 will start from Thursday, 19 September 2013 for 4 nights, ie. 19 to 22 September2013 inclusive.]
Although 2013 F1 hotel levy takes effect from Thursday, 19 September 2013 to Sunday, 22September 2013, the information collected for a broader timeframe will allow for more comprehensive pre- and post-race visitor trends
Mechanics of F1 Cess
13. How is the F1 Cess calculated?
The F1 Cess is based on the total room revenues during the stipulated period. Using the below official invoices to illustrate, if the room charge is S$100 (excluding ancillary charges), the F1 Cess will be $30 for trackside tourist hotels and S$20 for all other tourist hotels.
(A) Room Charge
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S$ 100.00
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(B) Breakfast
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S$ 40.00
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(C)Telephone
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S$ 10.00
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Total (A+B+C)
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S$ 150.00
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Service Charge 10%
|
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GST 7%
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S$ 11.55
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Total Reflected on Guest’s Bill
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S$ 176.55
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F1 Cess collected from trackside tourist hotel @ 30% รจ S$ 30.00
(30% of S$ 100)
F1 Cess collected from all other tourist hotel @ 20% รจ S$ 20.00
(20% of S$ 100)
The breakdown between the room revenue and other revenue components in the “F1 CESS PAYMENT FORM” should tally against the invoice to hotel guest.
If the invoice the hotel guest is reflected as a package price, without breakdown into room and non-room components, the F1 Cess will be calculated based on the package price.
Package Price
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S$ 500.00
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Service Charge 10%
|
|
GST 7%
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S$ 38.50
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Total Reflected on Guest’s Bill
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S$ 588.50
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F1 Cess collected from trackside tourist hotel @ 30% รจ S$ 150.00
(30% of S$ 500)
F1 Cess collected from all other tourist hotel @ 20% รจ S$ 100.00
(20% of S$ 500)
* The above illustration uses official invoice as the source document for the F1 Cess payment submission. You may use other source of supporting document, for example, system printed revenue distribution, on condition that the submission figure can be audited. The onus of declaring accurate and complete information remains the responsibility with the Hotel.
14. Are hotels required to reflect the F1 Cess as a separate item on the bill of hotel guests?
No, the F1 Cess should not be reflected on guests’ bills as a separate item. The levy is considered a business tax (i.e. more like corporate tax), as opposed to a consumer tax (i.e. the previous 1% cess and 7% GST).
15. Are hotels required to keep records for audit purposes?
Yes, hotels are required to retain relevant and sufficient records for a minimum period of 2 years for audit purposes.
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