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Thread: In regards to tipping

  1. #21
    Senior Member mmattalo's Avatar
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    While we believe "gratuity" is there to reward good service, the reality is servers depend on it given their low hourly wage . . . IMO, this is the best example of pay for performance. If I get really lousy service (where that performance can be directed to the server), I simply don't pay gratuity. If I get exceptional service, I pay 20%++ . . . for "expected" service (adjusted for the type of restaurant and type of service level), 15% is fair.

    I am not a fan of mandated gratuity - I see this as promoting a"take it or leave it" service attitude. For gratuity on credit card payments . . . be aware that very little often comes back to the servers after it is all split by many . . . I prefer cash gratuities where I can say "thank you" directly to the person who did an exceptional job to create an incredible experience for me and those I am dining with.
    Michael

  2. #22
    Aruba since 1979
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    Andrea J.'s Avatar
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    changing the name of this thread to MANDATED GRATUITY

  3. #23
    Senior Member Arubalisa's Avatar
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    Quote Originally Posted by hummel View Post
    Of the seven restaurants we visited in our recent trip only two had the tax on the bill.
    Quote Originally Posted by Arubalisa View Post
    The BBO is a tax required by the Aruban government.
    I should clarify and state that some businesses/industries, build the BBO into their pricing.

    Needless to say taxes are entirely different from gratuities/tips.

  4. #24
    Aruba since 1979
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    Andrea J.'s Avatar
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    Is ther a bbo tax in aua @ restaurants?
    Here in usa we have sales tax or meal tax
    in some states.

  5. #25
    Senior Member Arubalisa's Avatar
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    Quote Originally Posted by Andrea J. View Post
    Is there a bbo tax in aua @ restaurants?
    Yes. You can see an example on a restaurant menu here or here (bottom of page).

    Addtional info

    Turn over Tax
    The Turn Over Tax called "Belasting op Bedrijfsomzetten" (BBO) or Business Turnover Tax is an indirect tax, introduced as of January 2007. BBO is levied of the operating revenues realized by entrepeneurs within the framework of their business or profession by the supply of goods and rendering of services in Aruba. The general BBO rate amounts to 1.5%. A reduced rate of 1% is applicable for that part of the operating revenues that has been realized by the export of goods. Furthermore, certain exemptions are applicable. Most of the exemptions are connected with the medical sector, education, tourism and avoiding double taxation.

    BBO Tax (SalesTax)
    "...A surcharge of 3% is added to all your purchases made on Aruba. It is either included in your pricing or is added as a surcharge to your final purchase amount....Since the first of January 2010 the BBO has been reduced to 1.5%. So a surcharge of 1.5% is added to all your purchases made in Aruba."

    Turnover Tax
    General

    Subject to turnover tax (“belasting op bedrijfsomzetten”), hereinafter: BBO, are entrepreneurs that in the course of their enterprise supply goods or render services in Aruba. The taxable base consists of all remunerations (in cash or in kind) received by the entrepreneur for the supply of goods or the rendering of services. The rate is, as per January 1, 2010, set on 1.5% (before: 3%).
    Transitional regulation regarding rate change

    As per January 1, 2010, the rate has been decreased from 3% to 1.5%. For entrepreneurs using an invoice/accrual based system for the BBO, the BBO is due on the date of issuing the invoice. In case of goods sold and/or services rendered in December 2009, 1.5% BBO is due and should be paid no later than January 15, 2010.

    For cash based entrepreneurs, the change of the normal BBO rate per January 1, 2010 of 1.5% implies that on all receipts as of January 1, 2010, regardless of the year in which the good was sold or the service was rendered, 1.5% BBO is due.

  6. #26
    Senior Member danadog56's Avatar
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    the really sad thing about it all is that the server is the one affected by the 15% tacked on to the bill....he/she may not get anything because the restaurant chose to add that on to the bill.....we do take into consideration whether or not to leave an additional gratuitity but make sure we give cash to the server...hoping they keep it to themselves and not put it into the community tip jar....which, is another issue altogether...
    ARUBA....HOME AWAY FROM HOME

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