Wholesalers and sales tax
Personally, it's good locals are taxing wholesalers. This is great for the family with a small villa resort, which does not wholesale. However, the tax problem for them is two-fold.
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First, when selling direct, you must pay tax on the total room, or villa, to the local tax authority. On the other hand, wholesalers only pay tax on the "contract" rate. Effectively, they enjoy a state-tax sponsored discount. What makes this annoying is wholesalers often claim prices including xx% tax (the local hotel rate). This tax implies the whole amount, but it is pure bull.
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Second, there is more than the tax. There is the service charge. Wholesalers tend to say "price includes xx% tax and a service charge." Often, their rates do not include the service charge. If they do, the same problem exists. The service charge (%) is based on the contract rate. Also, it is likely this service charge never makes the hotel staff’s pockets. This is because the “twin book” hotel accounting system is endemic worldwide. In my opinion, this is fraud. It is the $50 (US) a month hotel workers, in 3rd world countries, who struggle to put rice on the table who get hurt.
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At a minimum, wholesalers need a "Net / Nett rate which includes all mandatory taxes and service charges (if any)". They should be required to pay the same tax and service charge percentages as hotels who supply the rooms.
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Once you run the numbers, wholesalers have an unfair and unnatural discount of around 15%. This comes from them doing what they do (not paying tax). When the time comes, hopefully they lose their day in court.
Tax should be applied and collected for the whole room amount. Service charges are removed from the equation. The guest pays at their own discretion, at the hotel. Personally, when travelling, don't accept mandatory service charges. Simply, they they are NOT! Pay service charges (and then decide the amount) based on what you get.
Console
City
Game
Critics
Advanced
First, when selling direct, you must pay tax on the total room, or villa, to the local tax authority. On the other hand, wholesalers only pay tax on the "contract" rate. Effectively, they enjoy a state-tax sponsored discount. What makes this annoying is wholesalers often claim prices including xx% tax (the local hotel rate). This tax implies the whole amount, but it is pure bull.
Physics
DFI
Street
PC
Guide
Second, there is more than the tax. There is the service charge. Wholesalers tend to say "price includes xx% tax and a service charge." Often, their rates do not include the service charge. If they do, the same problem exists. The service charge (%) is based on the contract rate. Also, it is likely this service charge never makes the hotel staff’s pockets. This is because the “twin book” hotel accounting system is endemic worldwide. In my opinion, this is fraud. It is the $50 (US) a month hotel workers, in 3rd world countries, who struggle to put rice on the table who get hurt.
Joomla
Full
Throttle
Support
Forums
At a minimum, wholesalers need a "Net / Nett rate which includes all mandatory taxes and service charges (if any)". They should be required to pay the same tax and service charge percentages as hotels who supply the rooms.
Layered
Hard
Gainer
NFL
Archives
Once you run the numbers, wholesalers have an unfair and unnatural discount of around 15%. This comes from them doing what they do (not paying tax). When the time comes, hopefully they lose their day in court.
Tax should be applied and collected for the whole room amount. Service charges are removed from the equation. The guest pays at their own discretion, at the hotel. Personally, when travelling, don't accept mandatory service charges. Simply, they they are NOT! Pay service charges (and then decide the amount) based on what you get.
posted by Don Marchand | 8:06 AM
1 Comments:
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