Monday, December 18, 2006

Important *NEW TAHITI TAX*

A new hotel association Agreement calls for a service tax starting January 1, 2007. This service tax applies to all accommodation and food & beverage charges (exclusive of tax) .

The implementation of the service tax has been set as follows:
-From January 1, 2007, 1% of all accommodation and food & beverage charges (exclusive of tax) ;
-From January 1, 2008, 2% of all accommodation and food & beverage charges (exclusive of tax) ;
-From January 1, 2009, 3% of all accommodation and food & beverage charges (exclusive of tax) ;
-From January 1, 2010, 4% of all accommodation and food & beverage charges (exclusive of tax) .

Consequently, starting on January 1, 2007:

This service tax will be due along with other taxes (TVA, RPT . . .) for all stays, beginning January 1, 2007, including reservation files already reserved and prepaid. The service tax will be applied to all restaurant services (food and drinks) consumed directly by these clients (incidentals) and this tax will appear on all invoices as “service 1% ”.