VAT in restaurants - is it a scam?

[thecolonel]

Sorry if this question has been asked before.


Went to a restaurant last night

Got charged 10% service charge and 7% vat

The SC part I understand.

Most restaurants don't charge VAT so how does this work? Is it a scam?

Thoughts?

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[caller]

Doesn't it depend on their turnover? And where they are located.

Where was the restaurant - in a hotel or mall?

[thecolonel]

Doesn't it depend on their turnover? And where they are located.

Where was the restaurant - in a hotel or mall?

No it was a freestanding restaurant

Turnover-don't know?

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[hhinner]

Sorry if this question has been asked before.


Went to a restaurant last night

Got charged 10% service charge and 7% vat

The SC part I understand.

Most restaurants don't charge VAT so how does this work? Is it a scam?

Thoughts?

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The menu prices seem lower when sc and vat are not included until you see the bill.

[Dannie Boy]

Whether it’s a scam or not, probably difficult to say, but the main thing is whether you were happy with the food and service for the bottom line?


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[thecolonel]

Whether it’s a scam or not, probably difficult to say, but the main thing is whether you were happy with the food and service for the bottom line?


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I agree it's the main thing but that's a separate matter(I thought it was a little pricey but it was 'good') but I still want to understand why some charge it and others don't.

I smell a rat!

I go to other restaurants that I'm certain have higher turnovers and they don't charge VAT

Also this restaurant last night charged me VAT, how do I know they're VAT registered and pay it back. There's no vat Reg no. on the receipt. Could just be a way of charging more money



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[Dannie Boy]

https://ezybiz.com/resources/content/vat-in-thailand_14

[KhunLA]

Restaurant must state they are going to charge a 10% SC, usually on the menu.
https://www.bangkokpost.com/learning/ad ... ice-charge
You can refuse to pay the SC if it is not plainly stated somewhere.

VAT is usually in the price. Never been charged VAT as an added fee, unless it was also listed on the menu, and usually along with SC. "VAT & SC added" .. somewhere on menu.

Another source (April 2023):

[pharvey]

Not travelling and being based in the UK, I don't visit so many restaurants/pubs/"eateries" these days!!

There are places in the UK and several others that I have visited overseas where the Service Charge and VAT were not included in the price shown on the menu... HOWEVER, there always was (by law) a note indicating one or both were not included. Similarly, there are times where you see a +/- 10% Service Charge has been included (which does pi$$ me off - zero choice even being poor service).

I assume however, you weren't notified before seeing the bill? In this case, it's totally wrong in my book regardless of whether the meal or venue was good.... Would leave a bit of a sour taste. Just be straight up with charges.



[EDIT] Apologies - crossover with KhunLA's post...

[thecolonel]

I'd like to say this

I believe I wasn't informed of +10 and +7

The service was reasonably good so I wouldn't have refused to pay that although I may do in future

The VAT is still an issue. Even though you turnover 5k per day you don't have to charge VAT on top. You could (and most do) just give the customer one price(which is vat included) even though you're vat registered

So I still think it's an excuse to bump up the bill in a lot of cases

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[joelle]

Usually when they put the price and ++ it means service charge and VAT are not included.
You see it often when advertised for Xmas lunches/dinners or other events menus

[Big Boy]

Yes, I must say, it would be unusual for it not to be notified on the menu. However, they often use the smallest print possible.

[HarryVardon]

I have two problems with the Service Charge. The first one is that it is the norm in Thailand to leave 20 Baht. On a meal costing 4,000 Baht they take 400 Baht, a massive difference. You may disagree with the 20 Baht tip but that is a norm for this country and foreigners should accept this. Secondly, when service charge is automatically added to a bill it hardle ever goes to the staff!

[thecolonel]

I have two problems with the Service Charge. The first one is that it is the norm in Thailand to leave 20 Baht. On a meal costing 4,000 Baht they take 400 Baht, a massive difference. You may disagree with the 20 Baht tip but that is a norm for this country and foreigners should accept this. Secondly, when service charge is automatically added to a bill it hardle ever goes to the staff!

Well said HV.

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[caller]

I don' t agree 20 baht is the norm for tipping. It might be in back street restaurants in Hua Hin and elsewhere, run by Thai's and I certainly accept that 20 baht was the norm when I first moved here 10 years ago, but now? I'm not so sure. My other half never tips when there is a service charge, but where the service, food and overall experience has been good, she will routinely leave more than 20 baht. If she is not happy with some aspect of the meal, service etc she won't leave anything. She routinely leaves bigger tips in Bkk, unless we are eating noodles and the like, where she doesn't tip at all.