Hotel asking for more money for wedding after tax increase

or89

Hi,

We booked a hotel for next year 12 months ago and have paid a deposit and agreed a price.

We received an email today saying they are increasing the price due to the tax increase on hotels in the 2019 budget.

Can they do this?

Thanks.

vicwatson

Did you sign an agreement

or89

Yeah we signed a contract alright, and paid 1,000 about 12 months ago.

engiweirdo

Irish hoteliers. Real salt of the earth types.

vicwatson

And is there anything related to increases in the contract? If not then tough on the hotel

Shower Doctor

Hotel will throw out Shiite food at wedding and treat the wedding party as a bunch of peasants if they were contracted on price.

Gaillimh1976

The VAT increase is outside the control of the hotel.

Would be shocked if they don’t have a clause in the contract allowing them to pass this on.

Read your contract, especially the small print.

Hurrache

Almost 20 years ago we got caught with something similar, except we were buying a house. VAT increases were explicitly mentioned in the contract as being something that would be passed on. I remember thinking that it's not something we'd have to worry about, only to be caught months later.

Might be something hidden away in the context, but if not and both parties already signed, I'd be fighting it.

blindside88

As has been said check your contract, if it says “€x per head”
Or something to that effect I’d argue your ground, if it says “€x plus vat at x%” or “€x including vat @ x %” then I’d say you won’t have much choice. Best of luck with it hope it works out for you

or89

vicwatson wrote: »

And is there anything related to increases in the contract? If not then tough on the hotel

Your right they covered themselfs

"All prices are in Euro and are inclusive of VAT at time of printing (November 2017). Prices are subject
to possible change in line with any published VAT rate fluctuations in the future. Current rates are;
9% for food and accommodation and 23% for services and beverage."


I guess nothing i can do about it so

Thanks all for the advice!

vicwatson

You could try bargain, maybe ask for some free extra wine or the likes as a gesture of goodwill

thegolfer

How much have they increased the cost by?
The only tax increase is VAT on the 9% to 13.5% and the 23% remains the same.

Thus on 10.000 it's 450 an increase.

Workout the figures and compare, as there was also a minimum wage increase, which they may be attempting to pass on to you, under the guise of the VAT increase.

or89

its up to 13%, so yeah about 500 euro extra, so they offered to split the extra. i might agree to that with something extra thrown in if i can

Hitman3000

or89 wrote:

"All prices are in Euro and are inclusive of VAT at time of printing (November 2017). Prices are subject to possible change in line with any published VAT rate fluctuations in the future. Current rates are; 9% for food and accommodation and 23% for services and beverage."

It's an extra 45 euro per 1000 food cost. You have bigger headaches.

towger

Not that I’m a fan of the hotel industry here, but in fairness when they do their VAT return they will have to pay new VAT rate. Assuming they have not added on additional extra to your final amount, agreeing a 50 50 split is very reasonable in the circumstances.
As I said I’m not a fan of them, but fair is fair.

Calahonda52

or89 wrote: »

its up to 13%, so yeah about 500 euro extra, so they offered to split the extra. i might agree to that with something extra thrown in if i can

Why only might: they have made you a very reasonable offer.

rovertom

Calahonda52 wrote: »

Why only might: they have made you a very reasonable offer.

Yep they have effectively given you a 250 euro discount.

When we were booking the hotel we were warned about this up front (the fact the price is dependent on vat at the time) as the hotel suspected a vat increase last year, luckily for us it didn’t happen until this year and our wedding is done so we missed it.

engiweirdo

rovertom wrote: »

Yep they have effectively given you a 250 euro discount.

lol. I'd say there was already a more than healthy margin in their price. Discount me arse. Gougers.

Franz Von Peppercorn

I don’t remember prices falling when the vat rate fell. Might have missed that.

Did hotels reduce the prices of contracted rooms or weddings when the vat fell, anybody know?

c.p.w.g.w

Franz Von Peppercorn wrote: »

I don’t remember prices falling when the vat rate fell. Might have missed that.

Did hotels reduce the prices of contracted rooms or weddings when the vat fell, anybody know?

I'd be shocked if they did

Calahonda52

engiweirdo wrote: »

lol. I'd say there was already a more than healthy margin in their price. Discount me arse. Gougers.

****weirdo: The margin is irrelevant, the point at issue here is are they legally entitled to bill the extra VAT.
The answer is yes.
Your perceptions are, while obviously very meaningful to you, are irrelevant.

engiweirdo

Calahonda52 wrote: »

****weirdo: The margin is irrelevant, the point at issue here is are they legally entitled to bill the extra VAT.
The answer is yes.
Your perceptions are, while obviously very meaningful to you, are irrelevant.

Legally entitled to but not obliged to. As others have mentioned the previous VAT decrease wasn't passed on to consumers. Just another example of already wealthy hoteliers gouging the public. Gotta protect that bottom line.

evolving_doors

Franz Von Peppercorn wrote: »

I don’t remember prices falling when the vat rate fell. Might have missed that.

Did hotels reduce the prices of contracted rooms or weddings when the vat fell, anybody know?

Like ##### they did.


As some poster earlier said Fair is fair. But that logic falls down if it doesn't work 2 ways.

Trampas

I remember going into a restaurant before and after the vat reduction as same price

rovertom

Trampas wrote: »

I remember going into a restaurant before and after the vat reduction as same price

They only passed on reduction where they needed to such as making themselves competitive.
Where they could retain pricing, of course they all did that to help profits.
Now where we have a vat increase, it is similar. They will retain pricing and reduce profits if they need to to remain competitive while they will raise prices wherever they think they can.

TheChizler

Trampas wrote: »

I remember going into a restaurant before and after the vat reduction as same price

The decrease was to help them industry which was struggling as a whole. You wouldn't expect the VAT inclusive prices to change.

lashes34

My sister wqs getting married around the time the rate fell to 9% and her hotel did reduce the price in line.

TheChizler

lashes34 wrote: »

My sister wqs getting married around the time the rate fell to 9% and her hotel did reduce the price in line.

That was a preexisting agreement so by not reducing the gross price they would have been effectively increasing their fee after agreeing it. Hotel took in the same income regardless. I'd be interested to see what the VAT inclusive advertised rates were before and after the change. If they lowered them maybe they felt they didn't need the assistance.