China is making some changes to how they structure their taxes,including for hotel stays. These changes could very well cause your next hotel stay in China to be significantly more expensive.
Under the current system, most hotels in China charge guests a 15% "service charge." In practice the "service charge" is made up of a 10% service charge and a 5% commerce tax, and which they simply display as one amount to gain things easier.
As of May 1,2016, China is changing how they tax hotel stays. Rather than charging a commerce tax, or China will instead be charging a VAT (value added tax) for hotel stays. KPMG has an explanation of how the tax system is changing,for anyone who wants to learn more.
What's interesting is how the hotels are taking advantage of this change to charge you more, at least from the looks of it. whether you pull up any Starwood hotel in China, and you'll see an announcement stating the following:The post The Sneaky Way Chinese Hotels Are Charging More Starting In May appeared first on One Mile at a Time.
Source: boardingarea.com