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Service Charge & Vat


SamAndEst

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We've booked a couple of hotels for our wedding in Feb, the first (the Yacht Club) has quoted our rates inclusive of service charge, VAT & provincial tax, all good.

The second hotel however, has quoted us without ++. I have tried to pay for the room in full up front adding 18% to the rate I was quoted. I am advised that I actually have to pay 118.7% of the room rate, which I assume is the service charge (10%) & VAT (7%) added to the room rate, and then Provincial Tax (1%) has been calculated on the sum of this.

Everyone hates paying tax, but paying tax on tax?! Is this normal in Phuket?

I've spent several months over the years in other parts of Thailand & have never anything like it, cheeky bastards!

I will remember to pack my calculator when we go so I know how much the beers are actually costing me.

Cheers,

Sam

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  • 3 weeks later...
Looks like they calculate that figure by the cost of the rooms 100% + 10% Service Charge =110% then VAT on that of 7% = 117.7% then added the 1% Provincial charge = 118.7%

Or maybe they just plucked that figure out of the sky.

Yep. That's how they worked it out. Mental!

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  • 10 years later...
On 12/31/2009 at 12:54 PM, SamAndEst said:

I have tried to pay for the room in full up front adding 18% to the rate I was quoted.

I wouldn't want to be paying up front in a time where it is reported a lot of hotels are going or are about to be going bust, maybe a 10% deposit would be a wiser choice, that way if the hotel goes under, you only lose 10%, just saying.

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