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Passing on Uber Eats charges to Hotel Guests

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How should a hotel that provides it's guests the service of coordinating their Uber Eats Food deliveries, on charge for the full cost of the food and the delivery fee. So for example if the food cost was $30 and the delivery cost is $5, how will this appear on the guests bill assuming that the hotel has paid for the Food and delivery fee up front and needs to claim back it's cost directly from the guest.

What is the breakdown of the cost including GST and is this seen as a sale or simply recouping the cost to the hotel?

Thanks

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ATO Certified

Community Support

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Hi @Assured-One,

 

Thanks for your patience whilst we received information from a specialist area.

 

The amount charged to the guest forms part of the total bill for the client’s accommodation and related services provided by the hotel, and GST will be 1/11th of the total price.

 

In your example, the hotel pays $35, which is subject to GST, and can claim the GST as a credit. When the hotel on charges the guest the $35, the hotel also has to pay GST. Overall the hotel is not out of pocket.

 

You can find general information about income tax and GST in the sharing economy on our website. Alternatively, if you have further questions, you can phone us on 13 28 66 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

 

 

2 REPLIES 2
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Community Support

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Hi @Assured-One,

 

Thanks for getting in touch!

 

We're checking information with a specialist area regarding your query and we aim to get back to you as soon as possible.

 

Thanks, JodieH.
 

Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @Assured-One,

 

Thanks for your patience whilst we received information from a specialist area.

 

The amount charged to the guest forms part of the total bill for the client’s accommodation and related services provided by the hotel, and GST will be 1/11th of the total price.

 

In your example, the hotel pays $35, which is subject to GST, and can claim the GST as a credit. When the hotel on charges the guest the $35, the hotel also has to pay GST. Overall the hotel is not out of pocket.

 

You can find general information about income tax and GST in the sharing economy on our website. Alternatively, if you have further questions, you can phone us on 13 28 66 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.