The IRAS has amended its e-Tax Guide on “GST: Guide on the Use of Business Premises by Third Party for Free” on 19 June 2017 by inserting the following example:
Free Occupation by Canteen Operator Engaged to Provide Canteen Catering Services
A company has engaged a canteen operator to provide canteen catering services at its premises (i.e. in-house canteen) under a service agreement and pays a fee to the canteen operator in return for his services. The contract does not grant or assign any lease or license or any right to occupy land to the canteen operator. The operating hours, type of food and drinks to be served in the canteen and the food pricing are generally fixed in the contract. Where the operations of the company’s business make it necessary for the company to provide an in-house canteen to its employees and the canteen operator is merely occupying the canteen space for the purpose of providing his contracted services to the company, the company need not deem a supply on the free use of canteen space.
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