Guides by country
- Maldives: 10% service charge, 17% TGST on top, plus Green Tax
- Indonesia: The 21% tax and service: 10% service, 10% hotel tax on top
- Thailand: The ++ on a Thai rate: 10% service, 7% VAT on top
- Philippines: 10% service charge, 12% VAT on top
- Malaysia: 8% service tax, optional 10% service charge, RM10 tourism tax
- Egypt: 12% service, 1% city tax, 14% VAT, each on top of the last
- Dubai: Service charge, 5% VAT, 7% municipality fee and Tourism Dirham
- Greece: 13% VAT plus the climate resilience fee per room
Why adding the percentages gets it wrong
A service charge is usually part of what the guest pays for the room, so in many countries it is taxed as well. Tax on the rate alone gives 127.00 on 100 with 10% service and 17% tax. Tax on the rate plus the service gives 128.70. The 1.70 is small on one night, but a property that bills the lower figure still owes the higher one.
Frequently asked questions
Why doesn't 10% service and 17% tax come to 27%?
Because in many countries the tax is charged on the room rate plus the service charge. On 100, the service charge is 10 and the tax is 17% of 110, which is 18.70. The total is 128.70, so the two together add 28.7%.
Which countries charge tax on top of the service charge?
Among the countries here, the Maldives, Indonesia, Thailand and Egypt do, and Dubai and the Philippines do according to most of the guidance we found. Malaysia is disputed, and Greece doesn't usually add a service charge. Check your own with your accountant.
What is the fixed charge for?
Charges that depend on the stay rather than the price: Green Tax in the Maldives, Tourism Dirham in Dubai, the climate resilience fee in Greece, city taxes elsewhere. They are added after everything else.
Does Zitlin calculate this on real invoices?
Yes. Any tax component can be charged on top of the ones above it, and a per-guest or per-room charge can be added to every room invoice automatically. Invoicing is on the free plan.
Checked November 2026. This is a guide rather than tax advice, and rates change. Confirm yours with your tax authority or accountant.