Frequently asked questions
1) What is the GST treatment on rooms that are provided with furnished sleeping accommodation, spa, gym and laundry services to hotel guests?
- Supply of room with furnished sleeping accommodation is subject to GST.
- Recreational facilities such as spa, masseur services, compact gym and laundry services are taxable supplies and subject to GST at standard rate
- If services provided are not part of the room accommodation services, these services should be stated in a separate bill with the amount and GST charged indicated
- If it is provided as part of the accommodation package, then these services are to be considered as a single supply for charging GST
2) Is the hotel club annual membership fees subject to GST?
- Yes, the annual membership fees paid by members are subject to GST
- It entitles the members to enjoy the hotel facilities with special treatment or discount
3) Is the supply of bed and breakfast (B&B) treated as a single supply?
- The B&B establishment normally will include breakfast at an inclusive price
- This is treated as a single supply and subject to GST
3) Are tips given by guests voluntarily subject to GST?
- A tip given voluntarily by guest or customers to a hotel’s staff as token of appreciation for services rendered is not part of consideration for the supply, and is therefore not subject to GST
- However, if the tip is included in the customer’s bill as a mandatory service charge, then GST is chargeable
- GST is to be calculated on the value of the supplies inclusive of the service charge
- Customer will have to pay GST on the supplies and also on service charge