1. We are not VAT registered and so would not be charging VAT on the accommodation, does Booking.com charge VAT on the whole amount or just their commission. 2. If booking.com are showing a charge of 20% VAT, then why is it not reduced to 5% post 15th July in accordance with Hotels and holiday accommodation (VAT Notice 709/3)? Any ideas out there? Hospitality and tourism industry in India is expected to rise from Rs.15.24 lakh crore (US$ 234.03 billion) in 2017 to Rs.32.05 lakh crore (US$ 492.21 billion) by 2028. Implementation of GST has helped the sector by reducing costs for customers, harmonising taxes, and reducing business transaction costs, but has its own set of challenges. Save. All prices are subject to the statutory 10% VAT and this tax should be transparent to the customer, although some establishments make it explicit that VAT is included. Service charge is equivalent to the tip in the US. However tips are not usually given or expected in Korea but some places charge a service charge in lieu of the tip. The £300 travel cost that the consultant recharges to the client is not a disbursement so the consultant must charge VAT on it. But the cost of the website hosting package is a disbursement and Room Service Costs. It's probably not news to most readers that room service comes at a hefty price. That $10 sandwich will probably cost $20 or more when someone delivers it to your room. Beyond the menu prices, many hotels add a 15-18 percent gratuity to the base room service charge. To work out a price including the standard rate of VAT (20%), multiply the price excluding VAT by 1.2. For example, Business A is selling a shirt for £30 before VAT. In order to display the final VAT-inclusive price, they will follow the above formula: £30 x 1.2 = £36. Therefore, the VAT-inclusive price is £36. If I book through Hotels.com and pay at the hotel for a room costing £100+VAT, I am assuming that Hotels.com get a cut. Perhaps it works out as £90 to the hotel, £10 to Hotels.com and £20 to HMRC. Other indirect taxes generally include the following: specific business tax. customs duty. excise duty. stamp duty. land and building tax. signboard tax. Note that the land and building tax, which came into effect on 13 March 2019 with tax collection commencing from 1 January 2020, replaces Thailand’s house and land tax and local maintenance tax. Hypothetically, Hotel A is supposed to charge VAT at 14.5% as the visitor slept ‘in the area visited. ’ However, from a practical business perspective, Hotel A will not charge VAT on the food to the visitor as it qualifies as ‘food served at a place of accommodation’ and the visitor i.e., the domestic tourist, did not sleep over ‘at 9% tariff. The 9% tariff is also called the low tariff. This tariff is applied to many common products or services, such as food and drink, agricultural products and services, medicines, books, daily newspapers and magazines. An extensive list of goods and services for which the 9% tariff applies is given with the information for entrepreneurs 4bdGMif.