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sanook269
I've never gotten this "service charge" and "Value Added Tax" straight in my mind. I would assume, a dangerous thing to do, that the "service charge" is a built-in gratuity, whether earned or deserved or not,
a la the French "Service Compris," and the VAT is some sort of sales tax.
Is this correct?


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Posted on: 3:37 pm on Sep. 4, 2004
BigDUSA
From what I understand the service charge is not given to the employees but kept by the owner to pay for his BMW.


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Posted on: 4:47 pm on Sep. 4, 2004
Manuel bkk
VAT is the value added tax, correct. 7 % added to your bill. Service tax is added mostly at hotels or chain restaurants, bars etc. Normally another 10% on your bill.
The system is called '++'.
Some places are actually paying the service charge to their eployees, some don't.
In my opinion, and I am from a hotel industry background, the prices should include all charges and be nett prices. An example is the Conrad hotel. They started off with the '++' system and changed to a nett system. No more hidden charges, that is the way it should be...


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Posted on: 8:21 pm on Sep. 4, 2004
DrLove
The are no hidden charges.... it's (usually 10% service charge and 7% VAT) clearly written in conditions and menus.

Annoying, I would agree, but certainly not hidden. It's a bit like sales tax, you know they add a certain percentage to it.

Plus if they charge for service, a tip is not the common rule.


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Posted on: 10:12 pm on Sep. 4, 2004
caronte
In mosto places, the service charge is charged in order to assure that the staff of the owner has an additional income...some honest owners leave the service charge as tip to be shared within the employees, other don't.
So, as the service charge is 10% of the bill, I don't actually reccomend anymore to leave generous tips unless you were particularly pleased with the quality or the service provided....think about it, the avarage bill for a dinner for 2 in a decent restaurant is 1200/1500 baht, service charge is 120/150....seems enough to me!


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Posted on: 10:51 pm on Sep. 4, 2004
MaximusNaughtinus
I presume that as the 10% is their way of saving you the trouble in calculating and finding the correct change for a tip, that if service was not so good, or lousy, then you could ask for it to be refunded.

You guys that happily pay the 10% without question, might like to know that a friend who spekas thai asked the staff if the auto 10% was paid to the staff, daily, weekly or at the end of the month. They said it was not paid to them at all. So, beware not all places actually pay it, the business pockets it.


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Posted on: 3:24 am on Sep. 5, 2004
Mr Alan
Service charges are typically added in countries were tipping is not the norm or tips are relatively small. This includes most countries except the USA (maybe Canada and some others also). In theory, the salary in these non-tipping (or token tipping) countries includes the tip paid to the workers, so the owner is just collecting it as an extra line item to be paid as salary. In the USA, more than 50% of the wages earned by service personnel such as waiters, bellman, etc, are from tips paid directly by consumers.

VAT (value added tax) is sort of like a sales tax, but more comprehensive. In most countries that have a VAT, the tax is not only charged to the end consumer, but is added on at various points along the way in the manufacture or distribution of a product, as each adds value to the product. In other words, if a wholesaler sells a product to retailer, tax is charged to the retailer, unlike in the USA where an item purchased for resale is exempt from sales tax. I am not sure if VAT works exactly that way in Thailand, but they get much of their lingo and bad habits from the UK (like driving on the wrong side of the road).


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Posted on: 3:45 am on Sep. 5, 2004
bkkz

Quote: from DrLove on 10:12 am on Sep. 5, 2004
The are no hidden charges.... it's (usually 10% service charge and 7% VAT) clearly written in conditions and menus.
Go to Spasso, and you'll find that they have another charge, called the Excise tax... so, it's +++


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Posted on: 12:31 pm on Sep. 5, 2004
Ronnie Raygun
Hmmm....So that's why freelancers are so expensive there!


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Posted on: 1:34 pm on Sep. 5, 2004
herodotis
Also, there is probably not one waiter or waitress in Thailand who, if they get a share, would tell you. They would rather you think they don't and leave more.

Most of the places owned or managed by the big internationals (Starwood, Holiday Inn etc) do share the service charge. The smaller independents often don't.

Herodotis


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Posted on: 9:03 pm on Sep. 12, 2004
     

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