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  1. #1
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    Aug 2004
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    Default Service Charge 10%

    Hopefully some one can answer this question definitively.

    If you have a hotel with a restaurant/bar it is obvious from reading the law (Ley No. 5432) that you must charge 10% on all food and drinks from the restaurant. Food and drink is specifically mentioned in the law

    What is not clear is if there is also a requirement to charge 10% on the price of the hotel rooms.

    Any assistance is appreciated.

    DL

  2. #2
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    Mar 2005
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    Default

    Quote Originally Posted by slas7713 View Post
    Hopefully some one can answer this question definitively.

    If you have a hotel with a restaurant/bar it is obvious from reading the law (Ley No. 5432) that you must charge 10% on all food and drinks from the restaurant. Food and drink is specifically mentioned in the law

    What is not clear is if there is also a requirement to charge 10% on the price of the hotel rooms.

    Any assistance is appreciated.

    DL
    You do not need to charge the 10% service fee for hotel room rental or vacation home rentals. You do need to charge the 16% ITBIS for these, however.

    For example, a lawyer does charge a 16% "sales tax" for services rendered but does not charge the 10% "service fee".

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