Tax Calculation for hotels

asked Nov 22 in General Questions by Tilak
Can someone please outline the calculations for adding service charge, vat, nbt & any other applicable taxes/levies in the SL hotel sector now in 2018

Thanks very much

1 Answer

0 votes
answered Nov 22 by Visio (4,210 points)
Here is an example calculation:

Sales value                                 =   1000
+ Service charge  10%            =     100
+NBT 2% (1100/98*2)            =       22  (NBT optional)
+VAT 15% (1122*15%)           =    168    
Total charged to customer   =  1290

TDL Payable   to Tourist Board = (1290 - 100-168)*1%= 10.2
TDL is not generally explicilty charged to customer
commented Nov 22 by anonymous
Thanks very much Visio for a clear answer.

Tried to upvote - but forum closed for "registration"!!!

One further question please - what categories of business is NBT "optional" for?

Thanks

Tilak
commented Nov 22 by Visio (4,210 points)
NBT is optional for everything. If you can get the customer to pay NBT then you can charge. It ultimately depends on bargaining power

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