Tipping etiquette in Santo Domingo

[Lucas61]

As so many have already mentioned the ITBIS is a value added tax for goods and services, and the 10% ley is the tip, which as many already mentioned is in many cases not handed down to the staff, but in one sense, that's not my problem if they don't get it or not. I'm not going to ask the owner of the place if they pay their staff okay.
Anyways, tip whatever you want. It all depends on the service, personally I feel the majority of places I've been too have medium to even bad service, I get it you are paid basically nothign for your work, but it's not my fault as a customer.
And sadly as everything has risen like 100% the last couple of years, so has my own means to be extra generous.
I remember my favorite restaurant selling 50 wings for 550 pesos, now the same amount is 1100 pesos. So the few times I actually go there, instead of tipping like 15-20% because the food has become 100% more expensive, it's not possible anymore.
For baggers at the supermarkets, well it's not a service that I even want, they majority of those doing that are either too slow or just packs the groceries completely wrong, raw meets together with cheese and so on.
So as it's not a service that I even want to get, I would even prefer to do that myself as I come from a country where the customer is the one who does it, and I know how to best pack my own groceries, why should I pay for a service I don't even want? However, there are always exceptions to that rule. If the bagger has gone out of their way to accomodate me, like if I make a bigger purchase and they actually do help, or if they are very friendly (I've actually gotten to know a couple of them at some supermarkets), then of course no problem, I'll give them a 100 pesos or so.

I could Google it but this is where you come in Kricke87! For what is ITBIS an acronym? So this is an official value added tax such as the V.A.T. in the U.K.? When it comes to dining, since I'm on a budget, I avoid like the plague venues that add the ITBIS. It's strange to me that some add it and others don't. Any idea why?

 

[NanSanPedro]

Something that happened yesterday: I was at San Isidro Smart Fit and couldn't go home because my kid was cleaning the house. So I took an uber to the ZC. It was shockingly low, 217 DOP. The driver was very nice and I tipped him 150 DOP which is close to 70%. It wasn't that the service was that good, even though it was, it was because 217 DOP is close nothing.

 

[NanSanPedro]

I could Google it but this is where you come in Kricke87! For what is ITBIS an acronym? So this is an official value added tax such as the V.A.T. in the U.K.? When it comes to dining, since I'm on a budget, I avoid like the plague venues that add the ITBIS. It's strange to me that some add it and others don't. Any idea why?

Use cash, not credit cards. It's not foolproof, but most won't charge the ITBIS (yes, it is a VAT) if you pay cash.

 

[Lucas61]

Here's an example of tipping "from down below." I speak (Haitian) Kreyòl. Being one who has traveled to Haiti more than 100 times, once per month for ten days for ten years, I feel a special affinity for the young lads on El Conde in Sto. Dom. shining shoes. In general, they seek RD$500 per day which is sufficient for a room and a meal. By conventional pricing a shoe shine is RD$25.00. Obviously, this is a nearly useless sum of money, so I generally tip RD$100-200.

 

[Lucas61]

Something that happened yesterday: I was at San Isidro Smart Fit and couldn't go home because my kid was cleaning the house. So I took an uber to the ZC. It was shockingly low, 217 DOP. The driver was very nice and I tipped him 150 DOP which is close to 70%. It wasn't that the service was that good, even though it was, it was because 217 DOP is close nothing.

Absolutely. I automatically tip Uber drivers (from the application), 100-200 DOP. The official fares are not a livable wage.

 

[NanSanPedro]

Here's an example of tipping "from down below." I speak (Haitian) Kreyòl. Being one who has traveled to Haiti more than 100 times, once per month for ten days for ten years, I feel a special affinity for the young lads on El Conde in Sto. Dom. shining shoes. In general, they seek RD$500 per day which is sufficient for a room and a meal. By conventional pricing a shoe shine is RD$25.00. Obviously, this is a nearly useless sum of money, so I generally tip RD$100-200.

Same here. The police chase them out a lot now but when I see them, I get my tennis shoes shined, needed or not.

 

[flyinroom]

Same here. The police chase them out a lot now but when I see them, I get my tennis shoes shined, needed or not.

Tennis shoes shined?
lol.
A client of mine went on an excursion to Santo Domingo.
While there he was approached by a young lad offering a shoe shine.
He declined as he was wearing sandals (no socks/lol).
The young fellow was insistent so he acquiesced.
He spent the next week scrubbing the shoe polish from his feet.
He laughingly recounted the story and explained how he just couldn't say no.
Just like Cadbury's says...
There's a glass and a half in everyone.

 

[Kricke87]

Tennis shoes shined?
lol.
A client of mine went on an excursion to Santo Domingo.
While there he was approached by a young lad offering a shoe shine.
He declined as he was wearing sandals (no socks/lol).
The young fellow was insistent so he acquiesced.
He spent the next week scrubbing the shoe polish from his feet.
He laughingly recounted the story and explained how he just couldn't say no.
Just like Cadbury's says...
There's a glass and a half in everyone.

Lol. I was just about to mention this, that it has happened to me quiet some times that one of those "shoe shiners" comes up to me offering a shoe shine, WHILE WEARING SANDALS.... I'ml like, "Lol, why?"

 

[Kricke87]

I could Google it but this is where you come in Kricke87! For what is ITBIS an acronym? So this is an official value added tax such as the V.A.T. in the U.K.? When it comes to dining, since I'm on a budget, I avoid like the plague venues that add the ITBIS. It's strange to me that some add it and others don't. Any idea why?

The acronym stands for "Impuesto sobre Transferencias de Bienes Industrializados y Servicios" so basically "Tax for transfering goods and services". So yes the same as V.A.T
And in theory every restaurante or dining venue has to pay this, obviously in reality it's hard for DGII to actually taxate something if there's no evidence of a transaction. So cash without any form of receipts would probably not be taxated. However, I would guess that any more formal establishment is paying that tax. Then it's one thing if they actually show the total price on the menu are not. Either the establishment just puts 500 pesos for a plate or as many others do they put 400+Taxes (ITBIS and the 10% ley, which is tip). So in the end you pay the same, just that when you first see the menu and is unaware of the taxes you might think that you are paying 400 pesos for the plate at that place, whilst at the other place you already know how much you are going to pay. I don't really like those places that can't put the ACTUAL price you are paying at the end.
So if you try to avoid any venues that add ITBIS, well you'd have to eat at those places that aren't paying their taxes, so mostly smaller comedores and only cash. And even then you'd most likely don't know as they probably already have that included in the price.

 

[cavok]

If you go to a restaurant and you get an actual cash register receipt with an RNC number on it(Basically a tax I.D.), they are paying those taxes to
DGII. DGII sends inspectors around to verify transactions and the register. Next time you're at one of the major supermarkets, look at the receipt. It will have an RNC number on it. I'm sure some places have figured out some way to beat the system. Tax cheats are everywhere.

On the other hand, if you're just getting a handwritten receipt, chances are no taxes are being paid and if listed on the receipt, probably go into the owner's pocket. These are generally small establishments and are just too numerous and too "small fry" for DGII to check on.

 

[malko]

If you go to a restaurant and you get an actual cash register receipt with an RNC number on it(Basically a tax I.D.), they are paying those taxes to
DGII. DGII sends inspectors around to verify transactions and the register. Next time you're at one of the major supermarkets, look at the receipt. It will have an RNC number on it. I'm sure some places have figured out some way to beat the system. Tax cheats are everywhere.

On the other hand, if you're just getting a handwritten receipt, chances are no taxes are being paid and if listed on the receipt, probably go into the owner's pocket. These are generally small establishments and are just too numerous and too "small fry" for DGII to check on.

I think how the DGII mitigates the losses is by only allowing buisness with RNC numbers to claim back the ITBIS on what they buy.

So a buisness with a RNC number will pay to
the DGII:. ITBIS collected from sales minus ITBIS paid on merchandises bought.

A buisness w/o a RNC number, say a colmado, can not claim back the ITBIS on their purchases. So DGII is only out the 18% on the difference between the buy price and the sell price. As the colmado will have paid ITBIS when they buy salami off Induveca, as an example.

 

[Sol09]

If you go to a restaurant and you get an actual cash register receipt with an RNC number on it(Basically a tax I.D.), they are paying those taxes to
DGII. DGII sends inspectors around to verify transactions and the register. Next time you're at one of the major supermarkets, look at the receipt. It will have an RNC number on it. I'm sure some places have figured out some way to beat the system. Tax cheats are everywhere.

On the other hand, if you're just getting a handwritten receipt, chances are no taxes are being paid and if listed on the receipt, probably go into the owner's pocket. These are generally small establishments and are just too numerous and too "small fry" for DGII to check on.

All companies are REQUIRED to put their RNC on the receipt. that is a standard. So yes you should always see an RNC on the receipt.

 

[RDKNIGHT]

All companies are REQUIRED to put their RNC on the receipt. that is a standard. So yes you should always see an RNC on the receipt.

where's Bob when you need him .. he knows this stuff

 

[SKY]

All companies are REQUIRED to put their RNC on the receipt. that is a standard. So yes you should always see an RNC on the receipt.

You should see a lot of things in the DR that you DON'T always see..............

 

[RDKNIGHT]

You should see a lot of things in the DR that you DON'T always see..............

If it doesn't exist here it doesn't exist

 

[David B]

I could Google it but this is where you come in Kricke87! For what is ITBIS an acronym? So this is an official value added tax such as the V.A.T. in the U.K.? When it comes to dining, since I'm on a budget, I avoid like the plague venues that add the ITBIS. It's strange to me that some add it and others don't. Any idea why?

It's like a sales tax in the US. As with sales tax in different states, it doesn't apply to everything you buy.

 

[MariaRubia]

Same here. The police chase them out a lot now but when I see them, I get my tennis shoes shined, needed or not.

Those boys don't just shine shoes, they offer a whole range of services if you get what I mean. There's an expression that the guys say which I can't remember, but it's something like "Limpia Botas Cualquier Cosa".

 

[MariaRubia]

My two cents worth from someone who has worked in hospitality for many years. In Santo Domingo, as a business you have to charge ITBIS to everyone. DGII have been all over businesses that offered not to charge it for cash, and even the Chinese and even Colmados charge it now. The tax stands for Impuesto sobre Transferencia de Bienes Industrializados y Servicios, which means transfer tax for manufactured goods and services. And it works exactly the same as VAT in the UK, and I think the same as the Sales Tax in US states. You collect it and you deduct any ITBIS on purchased goods. Every month on the 20th you have to send a report to DGII including the long number on every single receipt for purchased goods, and you have to pay them what you owe by the 20th.

So onto the tips. The Propina Legal is confusing for businesses because the law says it must be 10% and split between all staff who provide service. Which is wooly and causes no end of discussions and arguments - should the cleaner be given a split? Does the manager get double? Staff can, and do, go to the Secretaria (the ministry of labor) to file a complaint if organisations are not paying the full 10%, and the inspectors then come (and usually want a huge back-hander themselves). And staff in hospitality talk of little else other than the 10%, there are always always accusations that the organisation is robbing them an not paying them their 10%. It's important that the 10% doesn't apply to take-out and isn't charged on the ITBIS, so if you start with RD$ 100, you have RD$ 10 service charge and RD$ 18 ITBIS. It's not 10% of the overall (RD$ 128 = 12.8) which is what confuses a lot of staff. Try explaining that to a guy who can't add up, trust me I've had to do it many many many many times.

Now should you tip on top? As someone who works in the industry, my answer is only if you have really great service. The staff are getting 10% and if you start giving big tips on top then you're just creating problems as they will all expect it, and ask for it, and get p!ssed when they don't get it. Restaurant prices are already crazy high in the DR. If you're going to take a $900 burger (i.e $15) and then add 18% ITBIS, and then 10% propina legal, and then give a 20% tip on top, you get 900 x 1.28 = RD$ 1,382. So the price has gone up by 50%, and we end up with a US$25 burger which is now way too expensive for what it is.

And in the long run this doesn't end well. Everyone is already struggling this year, the AirBnB's which are the bottom feeders in the tourism market are pretty much empty and we are now in the highest of high season. The issue is that this place used to be cheap, now it's becoming quite expensive, and the overall quality of pretty much everything - and especially customer service - just doesn't stack up compared to other countries that tourists can go to.

Apologies for the long post but I do know a bit about this.

 

[Facepalm Supreme]

Those boys don't just shine shoes, they offer a whole range of services if you get what I mean. There's an expression that the guys say which I can't remember, but it's something like "Limpia Botas Cualquier Cosa".

Sounds like child se**ual abuse. Unacceptable at the very least. And I'm confused as to why Nan reacted with a laughing emoji.

 

[Facepalm Supreme]

Now should you tip on top? As someone who works in the industry, my answer is only if you have really great service. The staff are getting 10% and if you start giving big tips on top then you're just creating problems as they will all expect it, and ask for it, and get p!ssed when they don't get it. Restaurant prices are already crazy high in the DR. If you're going to take a $900 burger (i.e $15) and then add 18% ITBIS, and then 10% propina legal, and then give a 20% tip on top, you get 900 x 1.28 = RD$ 1,382. So the price has gone up by 50%, and we end up with a US$25 burger which is now way too expensive for what it is.

And in the long run this doesn't end well. Everyone is already struggling this year, the AirBnB's which are the bottom feeders in the tourism market are pretty much empty and we are now in the highest of high season. The issue is that this place used to be cheap, now it's becoming quite expensive, and the overall quality of pretty much everything - and especially customer service - just doesn't stack up compared to other countries that tourists can go to.

Apologies for the long post but I do know a bit about this.

Very insightful and I Agree on all points. Tip is already being paid. I used to tip 20% but it simply isn't necessary. You are also tipping the price of the propina legal and itbis instead of simply the cost of the mealbwhich is ridiculous.

Giving people more money makes them ungrateful and entitled. I've seen it in my own business dealings the past 10 years. It is counter intuitive but thats just how it is. I think this is more true of people who are in lower economic class/better said have lower economic class habits and worldview. It is beyond the scope of this conversation but as Maria said what should be viewed as a bonus that one is grateful for becomes an expectation that if not received leads to very negative energy and a bad attitude/mood.

Finally, eating out here can indeed be expensive. I tend to frecuent places where I get a good deal on prices for the quality of food. I DO NOT go to expensive places where most items on the menu are over 1-1,500 pesos as I understand the value of a meal well cooked but do not value fancy places with lots of value added into the menu. I PERSONALLY don't have this problem, and compared to where I come from the restaurant prices are dirt cheap but I get this and agree. There are countries where one can travel and pay significantly less for the exact same quality of meal.