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