BIR: Hotel Room Tax Rate To Increase 2.5% Next Year
BIR Director Marvin Pickering
CHARLOTTE AMALIE – The hotel room tax will go up 2.5% next year, according to the Bureau of Internal Revenue.
Hoteliers, time share developers and innkeepers will have to charge their guests a 12.5% tax effective January 1, 2016, the BIR said. The current rate is 10%.
The hotel room tax is 12.5% of the gross room rental, which includes the gross room rate plus any additional charges, such as energy surcharges and maintenance fees.
The increased tax rate will apply to every guest that resides in the hotel, villa, time share, inn, or any other sleeping accommodations for a period of less than 90 days.
“The 12.5% hotel room tax should be separately stated on the invoice to avoid any appearance of collecting more tax than is allowed by law, BIR Director Marvin Pickering said. “It is imperative that taxpayers are able to easily identify the tax charges on their bill, to ensure that the tax is being properly calculated.”
Hotel room tax returns are due on the 30th day after the end of each month. Questions concerning the hotel room tax should be directed to the Office of Chief Counsel at (340) 715-1040, ext. 2249.