Saturday, September 22, 2012

Service Charge row Brewing over VAT

Posted by at

7 comments:

Anonymous said...

This VAT woman, the more she speaks the more idiotic she sounds. The decision of passing that VAT unto the final consumer will be a decision the hotel or by and large the establishment in question has to make. This in itself is a very uncomfortable situation as i dont see me as a final consumer paying 25% service charge at any establishment. This decision i think is just one nail in the coffin of the hotel sector and it will be quite interesting to see what route is taken in that service charge fiasco. Will the workers be the sacrificial lambs or will the establishment take the risk of charging its customers and extra 15% on their service charge. tik tok tik tok the trouble has just started.

September 22, 2012 at 3:25 PM
Anonymous said...


Here is how I believe the system should work; Hotel X has 10 employees who share in the service charge pool evenly, even if some of the employees didn't participate directly in the service process. If the establishment collects $1000. for the service charge pool for the week, therefore it is logical that each employee participating in the pool will receive $100. for that week, out of which payroll tax and National Insurance contributions and the like will be deducted.

The Act would require the HOTEL to collect for them from the consumer, an additional 15% of the $1000. or an additional $150. which will be paid into the VAT system. This should not in anyway affect the $1000. to be shared by the employees, and their livelihood.

To simplify; A customer purchases $100. worth of food, their bill will reflect the service charge of 10% or $10 and the VAT as 15% of the $10. or $1.50 Therefore the bill would look like this:

Food=$100.
Service Charge; 10% of $100 = $10. VAT; 15% of the service charge of $10 = $1.50
Making the bill a total of $111.50

The $111.50 is distributed as follows: The Hotel keeps $100. The Service Charge Pool gets $10. and the VAT system gets $1.50

The above is standard practice.

September 22, 2012 at 7:25 PM
Anonymous said...

You gave an elaborated version of that i was talking about, however, with service charge in essence being 25% what do you think will happen to the sector? We are overlooking that fact that the country or the world by extension is cashed strap and that people watch every cent they spend. In that case one will suffer, it will either be the hotel, the customer, or the worker.

September 24, 2012 at 9:59 AM
Anonymous said...

If the VAT emolument is given to subsidize the low wages of hotel workers, then, it would be advantageous to give the workers a wage increase commensurate with the cost of living in St.Lucia. The distribution of the VAT, as it appears, seems a pittance that will not make any difference in the inflated price of a pound of sugar and the 50 cents extra on a hotel worker's paycheck.
If an initiative is taken to augment the income of hotel workers and fortify the island's economy, then, pay them a living wage instead of this spit-in-the-palm pretence at helping them.

September 25, 2012 at 2:46 PM
Anonymous said...

We have lived freely long enough. It's about time we pay our dues.

September 27, 2012 at 10:52 AM
jeff daniel said...

greedy governments measures it just goes to show what type government running this country and what have show it nothing i don't see benefits i see victimization

September 29, 2012 at 5:53 AM
Anonymous said...

I believe I got your drift. However separation of sentenses with fullstops would make it easier for everyone. Just saying.

October 1, 2012 at 5:28 PM

Post a Comment

Subscribe to: Post Comments (Atom)