SLHTA’s statement on “VAT on Service Charge”

Thursday, September 27, 2012

Anonymous said...: Is the VAT paid by the employee or the final consumer. If its the consumer, then someone is not telling the employees the truth. For example if my bill is $100 and the service charge is 10% this make my total cost $110 plus a VAT of 8% of 110. Here I will be paying a grand total of $118.00. In this case the employee still gets his/her $10.00 service charge, the hotel its $100 and the government its VAT of $8.80. I could be wrong, but it seem very unlikely that a employee would be asked to pay VAT when they are not the final consumer.; September 27, 2012 at 4:54 PM
Anonymous said...: Your maths is wrong, using your figures:

Before VAT: Bill $100, Service Charge 10% $10, HAT 8% on Bill $8, Total $118.00

After VAT: Bill $100, Service Charge 10% $10, VAT 8% on subtotal $8.80, Total $118.80.

Who pays the $0.80?; September 28, 2012 at 3:13 PM
Anonymous said...: anonymous you are quite correct but the problem for the hoteliers is how will that charge be recieved by their final consumer and what effect will it have on the volume. this cant pose a serious threat to jobs in that sector. catch 22 like they say..; September 29, 2012 at 2:31 PM