Thursday, December 15, 2011
When a venue says that the tax is added to the entire bill, does that include the 21% service charge?
What I mean by this is, is there tax on the service charge, also?|||Is that a 21% service charge or a 21% gratuity charge? They are distinctly different animals. The venue cannot tax gratuities, but service charges may be taxable depending upon the state in which the venue is located.|||Is it tax or are they adding grat to the bill. Tax they have to. If they grat the bill that is the tip.|||Yes taxes are charged on the total amount including service charge if any.|||Tax is sales tax. Service charge is gratuity. Only goods are taxed, not services.
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