The Hotel, Restaurant & Tourism Taxation Ordinance imposes taxes on the provision of Accommodation Services, Designated Restaurants & Bars and other Tourism related Services at a rate of 12%. Other Tourism Services prescribed in legislation as taxable include:
- Tour Operator Services
- Tourist Guide Services
- Camping and caravanning site services
- Camping Equipment leasing or rental services
- Watersports/beach equipment leasing or rental services
- Sports Fishing
- Sightseeing excursion services
- Sightseeing services, aircraft or helicopter
- Non-motorized land transport equipment leasing or rental services – eg. Bicycles
- Non-motorized air transport equipment leasing or rental services
- Parasailing, parachuting, zip lining
- Horse-back riding and related services
- Photography and photographic camera rental services
- Museum Services except for historical sites and buildings
- Spa Service
- Destination Wedding Planning Services
- Concierge Services
Proprietors are required to register 30 days before the commencement of operation using the prescribed HRTT Registration Form. All Tax Registrants receive complimentary advisory sessions during which they are advise how the tax should be applied, completing remittance forms, filing dates, what and how records should be kept and other obligations under the HTT Ordinance.
Independent Tourism Service Providers maybe awarded exemption where the business does not meet the threshold of $4,000.00 monthly upon supplying sufficient evidence. All service providers are initially registered to collect and remit tax and are require to make application in writing to the Revenue Department for exemption.
Bars & Restaurants affixed to a hotel are immediately registered for taxes while other Bars and Restaurants may be designated to collect and remit taxes based on any of the criteria specified below:
- The size of the business
- The location of the business
- The seating capacity
- The monthly/annual turnover of the business or
- Whether the premises target market/customer base are largely persons who are tourists
HRTT payments are due on or before the 21st of each month for the month prior. A tax remittance form is collected from the Revenue Department for each tax period due to be paid on or before the 21st of each month for the month prior. Failure to complete remittance and payment by the 21st will immediately result in a penalty of 20% of the tax overdue and interest of 1.5% monthly of the tax for as long as it remains outstanding.
Businesses operating seasonally are still required to file a nil return where no tax has been collected due to temporary closure and give notice of period of closure in writing to the Revenue Department.
Businesses are required to maintain proper books and records even upon exemption (which may be subject to registration at a future date) for up to seven (7) years and are subject to period audits as taxes remitted are on a self-assessed basis.
The HTT Ordinance also requires registrants to give notice of changes to the Revenue Department including:
- Change of location
- Change on any details on the initial application and registration forms
- Temporary closure
- Change of ownership
More details can be obtained from HRTT Brochure or contacting the Taxpayer Services of the Revenue Department.