Service Charge 10%

slas7713

New member
Aug 9, 2004
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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
 

Castellamonte

Bronze
Mar 3, 2005
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Cabrera
www.villa-castellamonte.com
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".