FORMULA ONE (F1) CESS 2009

General

1. Who is subject to the Formula One (F1) Cess? 

2. Do I need to register my hotel for the F1 Cess? How do I register for the F1 Cess? 

3. Who is the collecting agent for the F1 Cess? 

4. Are there any forms that I need to submit? How do I submit my forms? 

5. When do I submit the F1 Cess payment form and F1 Cess payment? When is the due date for payment? 

6. How do I pay the F1 Cess? Who do I pay the F1 Cess to?

7. What is the penalty for paying late and note paying F1 Cess? 

Rates of F1 Cess

8. How many room nights does the F1 Xess cover and for which period? 

9. Will the Xess 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"? 

10. What are the F1 Cess rates? Why are there different levels of contribution for different hotels? 

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? 

Mechanics of F1 Cess

12. How is the F1 Cess calculated? 

13. Are hotels required to reflect the F1 Cess as a separate item on the bill of hotel guests? 

14. Are hotels required to keep records for audit purposes? 

1. Who is subject 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 would 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.

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3. Who is the collecting agent for the F1 Cess?

Singapore Tourism Board (STB) has appointed Inland Revenue Authority of Singapore (IRAS) as the collecting agent for the F1 Cess.

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4. Are there any forms that I need to submit? How do I submit my forms?

You are required to submit the F1 Cess form to IRAS. This form can be downloaded from the IRAS website.

5. When do I submit the F1 Cess Payment Form and F1 cess payment? When is the due date for payment?

The F1 Cess form and payment are to be submitted within two months after the end of the F1 event i.e. 28 Nov 2009.

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6. How do I pay the F1 Cess? Who do I pay the F1 Cess to?

Please pay by cheque, crossed and made payable to the Comptroller of Goods & Services Tax. Cheques must reach us by the due date to avoid late payment penalty. Please write the name of your hotel and cess reference number on the reverse side of the cheque and mail it together with F1 Cess form to:

The Comptroller of Goods and Services Tax (Cess)
55 Newton Road
Revenue House
Singapore 307987

Please note that IRAS does not accept post-dated cheques. No receipt will be issued for cheque payment.

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7. What is the penalty for paying late or note paying F1 Cess?

A penalty equal to 5% of the Cess Shall be payable after 28 Nov 2009. 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 28 Nov 2009. The total additional penalty shall not exceed 50% of the amount of F1 Cess outstanding. 

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8. How many room nights does the F1 Cess cover and for which period?

The F1 Cess will be effective for a period of four nights. For the second F1 race to be held in Singapore on 27 Sep 2009, the four night period will be from Thursday (24 Sep 2009) to Sunday (27 Sep 2009), both dates inclusive.

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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 subject to the F1 Cess. This includes rooms that have not been paid for and rooms where payment was pre-collected for (and not refunded). Thus, all room revenues collected for this period must be reported as paid lettings. 

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10. 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.

Different hotels are likely to benefit to a different extent from the 2009 FORMULA 1 TM Singtel Singapore Grand Prix. For instance, hotel that either 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 reasonable for these hotels to put up a larger contribution towards the staging of the race.

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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?

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 27 Sep 2010. Please submit your requests for refunds to STB.

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12. How is the F1 Cess calculated?

The F1 Cess is based on the total room revenues during the stipulated period. Thus, if the room revenue is at S$100 (excluding service charge and GST), then the F1 Cess will be $30 for trackside tourist hotels and S$20 for all other tourist hotels.

F1 Cess collected from trackside tourist hotel @ 30% —> S$ 30.00 (30% of S$100)

F1 Cess collected from all other tourist hotel @ 20%   —> S$ 20.00  (20% of S$ 100)

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13. Are hotels required to reflect the F1 Cess as a separate item on the bill of hotel guests? 

No, the F1 Cess will not be reflected on guests’ bills with the levy being a business tax (i.e. more like corporate tax), as opposed to a consumer tax (i.e. the previous 1% Cess and GST).

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14. Are hotels required to keep records for audit purposes?

Yes, hotels are expected to keep and retain sufficient records for a minimum period of 2 years for audit purposes.

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