Restaurants adding the 7% VAT to the menu price listed

[vagabond48]

In many years that I have lived in CM, the various restaurants and popular buffets I frequent, always charge the exact price that is verbally quoted or written on menus which includes the 7% VAT.

Several months ago, I finally went to Dukes for the 1st time and was surprised to see that the 7% VAT was added to my bill. This is the 1st time I have seen this. Yes, I know that it is "only" 7% and that this is the billing procedure in western countries but this is not the case in Thailand, from my experience.

IMO, it appear to be an added "hidden" charge because this is contrary to the normal billing procedure at other restaurants/buffets.

I was wondering if other popular restaurants here in CM starting to do this as well.

[masuk]

When Australia went to the VAT/GST system years ago, it was made into law that no goods were to have tax added over and above the advertised price.

There are still some countries where it's added on at the cash register, which really annoys me. You have the correct money in your hand, and then they ask for another 7% or so.

I haven't seen the other trick here that I can think of, which is where a "service charge" is added. I often wonder if the staff get any of this.

[Oscar2]

Grandview Hotel adds 7% VAT to the bill as do many others. i only mentioned that one cuz i was there a few days ago and remember seeing it.

i was also at Sizzler recently. 7% VAT.

Edited February 14, 2014 by Oscar2

[amexpat]

There is a restaurant near Panthip plaza that is Whole-ly devoted to Earth tourists. The menu states a 7% vat will be added in addition to a

10% service charge "which does not include tips" ! ?

[AngelsLariat]

There is a restaurant near Panthip plaza that is Whole-ly devoted to Earth tourists. The menu states a 7% vat will be added in addition to a

10% service charge "which does not include tips" ! ?

At a popular & relatively upscale Italian restaurant in Chiang Mai I inquired of the staff whether they get the 10% service charge. The answer was that the owner "shares" it with them - the owner takes his cut and gives them the rest. Unknown how big the owner's cut is, but still I won't be going back to that place. I wouldn't mind the 10% SC charge so much if it went to the staff, but if it's just going to the owner it would be more honest if they boosted the prices on their menu by 10% instead of misleading customers into thinking that they are paying a 10% tip to the staff.

Edited February 14, 2014 by AngelsLariat

[eyecatcher]

All the big hotels add the service charge and this goes directly to the staff.

My wife just told me that her previous hotel.... that the service charge bonus for last month was a whopping 29000 baht each employee in top of a very good salary.

As her face contorted with envy I suggested she goes back......to Phuket.

[iainiain101]

It must depend on the restaurants you frequent. I find that it is more normal for them to add the 7% than not.

[mizztraveller]

Not all "western" countries add the tax. In the UK the price you see is the price you pay. Some restaurants sometimes include a 10% service charge but you can ask for it to be deducted if you prefer to leave a tip for an individual member of staff.

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[beau thai]

My experience here is that menu prices are normally quoted gross - ie all in. The food would have to be exceptional for me to go back after seeing '7+10' added.

I think it is deliberately misleading and therefore dishonest. Like buying a new car and being charged extra for the wheels

[eyecatcher]

Yes in the uk restaurants and pubs selling food include a 20% vat charge but the price you see is the price you pay.

Can you imagine all those calculators going clickety click to add 7% in as you wait with the credit card.

As is often the case, businesses with high turnover have to register for vat even here, but its preferable to make the price all inclusive and mention it in the small print somewhere then its not looking like a sneaky extra.

[vagabond48]

Regarding Grandview and Sizzler where I have eaten, the final price on the bill is always the price that is quoted. The bill you see is broken down to the price of the foods you ordered plus the 7% which equals to the quoted price.

For example, until recently GrandView's buffet price 189B. The final 189B bill shows the cost of the buffet, water and the 7% VAT. This was the same for Sizzlers. We shop at airport plaza, when you purchase something for let's say 500B. The bill you get will show the price of the item plus the 7% VAT which will add up to the quoted 500B.

So yes, you have seen bills with the 7% VAT but it has always been included in the final price that is quoted not added to that price.

THIS IS NOT THE CASE WITH DUKES.

[northernjohn]

My experience here is that menu prices are normally quoted gross - ie all in. The food would have to be exceptional for me to go back after seeing '7+10' added.

I think it is deliberately misleading and therefore dishonest. Like buying a new car and being charged extra for the wheels

So if the price all in on the menu is 234 baht you would go back. But if the price was 200 baht plus 10% plus 7% which works out to roughly 235 baht you would not go back even though it was marked on the menu that the prices were to be added.

Don't know now but when I left Canada they had a provincial tax added on at the bill plus a federal one on some items and if you bought six of them some did not get it. 30,000,000 Canadians got used to it.

When you come right down to the bottom line the people who add it on to the bill are being honest they are right up front with how much for their meal and how much for tax.

[Chicog]

In my experience it is implied that it is ++ unless they explicitly state that the prices are all inclusive.

[besth]

My experience here is that menu prices are normally quoted gross - ie all in. The food would have to be exceptional for me to go back after seeing '7+10' added.

I think it is deliberately misleading and therefore dishonest. Like buying a new car and being charged extra for the wheels

So if the price all in on the menu is 234 baht you would go back. But if the price was 200 baht plus 10% plus 7% which works out to roughly 235 baht you would not go back even though it was marked on the menu that the prices were to be added.

Don't know now but when I left Canada they had a provincial tax added on at the bill plus a federal one on some items and if you bought six of them some did not get it. 30,000,000 Canadians got used to it.

When you come right down to the bottom line the people who add it on to the bill are being honest they are right up front with how much for their meal and how much for tax.

I much prefer when the listed price is the total price to pay, but I agree with you.

At the end of the day, what is important is the final price.

Specially with the 7% VAT, that is something that doesn't go into the business, they are just acting on behalf of the government, no reason for them to be seen as making that money.

The 10% service charge is different. Whenever that is added separately it means I am not given the option of choosing to leave a tip, or make it smaller. Also, the feeling that the restaurant owner may be pocketing some of it, as is the case many times, doesn't make me feel particularly happy.

That reflects into a 0 extra tip, which probably only hurts the staff.

Still, if the meal is good and I enjoy the experience, I will be back to those restaurants as long as the bottom line price is fair for me.

[true blue]

japanese resturant in airport plaza,always charge tax and service charge and have for the last 10 years,the red lion in night bazzar,charges tax and service,all the hotels do,and any one one else who can get away with i suppose.

[Chicog]

japanese resturant in airport plaza,always charge tax and service charge and have for the last 10 years,the red lion in night bazzar,charges tax and service,all the hotels do,and any one one else who can get away with i suppose.

You do not "get away" without paying the tax. Include it in your prices or charge it separately, you are still legally bound to charge it and pay it on.

[bazmlb]

There are a lot of tax laws that the Revenue department are starting to enforce this year, bills are meant to show VAT and service charge separately.

http://www.rd.go.th/publish/6043.0.html

VAT registered person or entity is required to issue tax invoices every time the transactions are made showing details of nature and value of goods sold or services provided and also amount of VAT due.

[Slappz]

It's only a small minority of restaurants in Chiang Mai that charge the + 7% and + 10% respectively. It's very easy to avoid them as a consumer if you don't agree with their business practices. Vote with your money.

[Ulysses G.]

It's only a small minority of restaurants in Chiang Mai that charge the + 7% and + 10% respectively. It's very easy to avoid them as a consumer if you don't agree with their business practices. Vote with your money.

I mostly avoid them, but there are a few that are worth it. The Dukes, Zen and Fuji for example.

Edited February 14, 2014 by Ulysses G.

[Chicog]

It's only a small minority of restaurants in Chiang Mai that charge the + 7% and + 10% respectively. It's very easy to avoid them as a consumer if you don't agree with their business practices. Vote with your money.

I mosty avoid them, but there are a few that are worth it. The Dukes, Zen and Fuji for example.

Doesn't the menu state "All prices are subject to..." etc.? If they aren't that's a bit cheeky.

Edited February 14, 2014 by Chicog

[WinnieTheKhwai]

It's only a small minority of restaurants in Chiang Mai that charge the + 7% and + 10% respectively. It's very easy to avoid them as a consumer if you don't agree with their business practices. Vote with your money.

I mostly avoid them, but there are a few that are worth it. The Dukes, Zen and Fuji for example.

I mostly avoid those kinds of places too. It's just that to me Duke's doesn't feel like 'that kind of place' so I do go. It would make much more sense and be a lot more transparent to just include it in the prices on the menu though. I honestly can't see a reason not to include it.

So I just don't tip at Duke's. I realize it's VAT and not service charge, but this is just my own little protest at the menu being needlessly obfuscated.

Edited February 14, 2014 by WinnieTheKhwai

[Ulysses G.]

I don't tip if there is a service charge, but VAT tax has nothing to do with the staff.

[northernjohn]

It's only a small minority of restaurants in Chiang Mai that charge the + 7% and + 10% respectively. It's very easy to avoid them as a consumer if you don't agree with their business practices. Vote with your money.

I mostly avoid them, but there are a few that are worth it. The Dukes, Zen and Fuji for example.

I mostly avoid those kinds of places too. It's just that to me Duke's doesn't feel like 'that kind of place' so I do go. It would make much more sense and be a lot more transparent to just include it in the prices on the menu though. I honestly can't see a reason not to include it.

So I just don't tip at Duke's. I realize it's VAT and not service charge, but this is just my own little protest at the menu being needlessly obfuscated.

On the bright side Dukes doesn't charge the 3% for a credit card. Many do only they hide it in the price. To me makes no difference. I know I am paying it one way or another.

Now if I could only talk to the tax people it would be a different situation. I would inform them that some people don't care how much they pay as long as they don't see it. So up the tax to 10% and pay the farmers.

[thrilled]

The world is getting more expensive.You are going to have to live with it.If you've noticed thru your life things just get more and more expensive.Thats life.

[amexpat]

7% yes 10% BS

[hellodolly]

7% yes 10% BS

Ah I was just referring to the people who don't want to know what it is. Ergo don't mention it hide it. Mind you I think back in Canada where I came from they were paying over 12%. Not sure any more it used to be more.

[Chiengmaijoe]

So long as it clearly states that 7% tax is not included it doesn't bother me in the least. It is easier if the price is inclusive, so I don't really understand why a restaurant wouldn't use inclusive prices, particularly since it clearly does annoy some, but that's their choice.

[koo]

Its funny how in the USA they quote restaurant prices excluding VAT and service.

Just for legal reasons, if a patron leaves those unpaid, who are the officials going to chase - the restaurant owner of course!

-------------------

In the late 90's, I did runs to McDonalds, where the Big Mac was advertized selling for 99 cents. I left always with 2 big macs, and leaving them 1,98 in small coins. They never claimed for the missing service/tax although I did this at least once a week.

[mr chow]

Hello.......he's just raised prices! He was eating the sales tax before or it was in the price. Old restaurant trick. Daaah

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[Thai at Heart]

Not all "western" countries add the tax. In the UK the price you see is the price you pay. Some restaurants sometimes include a 10% service charge but you can ask for it to be deducted if you prefer to leave a tip for an individual member of staff.

Sent from my GT-I8552 using Thaivisa Connect Thailand mobile app

That's because the price already includes the sales tax.