Man surprised to be charged GST for haircut at Tampines salon

Man surprised to be charged GST for haircut at Tampines salon

Stomp·2024-05-13 19:00

Goods and services tax (GST) for a haircut?

Yes, a haircut is a service after all.

Yet Stomper Oo was surprised when he was charged GST after getting a haircut at Salon One in Tampines recently.

That was because he was not charged GST before. Or so he thought.

To understand what happened, you have to first understand the salon's intricate pricing system.

The salon charges $6 for haircut, but members pay only $3. To become a member, you have to pay a $60 deposit. Each time you get a haircut at the salon, $3 will be deducted from the deposit.

The Stomper said when he became a member three years ago, he was not charged GST. He just paid $60 and that was it.

He added that at the time, a haircut was only $2 for members, but it was increased to $3 at the start of 2024.

On May 10, he was informed that his balance was low, only $10 left.

"They asked for a $50 top-up," recounted the Stomper.

When he asked whether he could top up just $30, the salon staff said no.

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