In Reply to: Tax & service charges, can anyone posted by micki on Monday, 8. December 2008 at 14:24 Bali Time:
liable for a GST-type government tax of 10% of gross income. Most businesses add this on to the basic price but some do not but just include in the price quoted, like in Australia where GST is just included in retail prices. This tax is collected monthly by officials who come to the business to check.
The service charge is up to individual businesses but is usually 10% of gross sales. Thus $100 charge will get $10 added for service = $110 and then $11 added for tax making a total of $121 to pay. Some menus etc have a price ++ and this means those amounts will be added at the end, a total of 21% added to the original amount.