Service charge is taxed?

[steffi]

I usually stay in private accomodation when I'm in Bangkok so I don't know if this is typical or not but it seems at least on Phi Phi you cannot fart without paying a service charge and to top that off they include the service charge in the total they use to calculate VAT. So you're basically paying tax on the service charge. Is this normal? It's not like there anywhere else I've seen. I'm of the belief that although the prices are ex-vat that they include VAT and that the service charge and the VAT on the total if going into the coffers of the owner. That to me is the only reason to list prices ex-vat. I'm pretty sure when I buy something in Bangkok like a Coffee or something I'm being quoted inclusive of VAT.

 

I just find it strange to 1. find all prices listed ex-VAT and 2. to find that you pay VAT on the mandatory service charge of 10% for anything you buy here.

 

Are they taking this piss or am I just out of touch?

 

In america if you returned to the table with a bill taxing the tip the person left people would not be at all happy. Granted it's mostly europeans that come here but are prices there quoted ex-vat?

[gene1944]

Some restaurants do the same thing and I suspect that the excess VAT gets included with the owner's profits.

 

I inquired one time about taxing the service at the Kalapruek Thai Rest on fifth floor of the Emporium and was told "Don't worry, it is not much". I don't eat there anymore.

 

Too bad, because I liked the food there.