WILLEMSTAD - Service charges in the hospitality sector are not mandatory if they are not listed on the menu, and tips are always voluntary. This is reported by the Curaçao Consumer Union in a press release. Since January 2023, the Curaçao Restaurant Association (CRA) and the Royal Dutch Hotel and Catering Association (KHN) have been working together under the KHN Curaçao branch. This collaboration aims to enforce hospitality standards among affiliated establishments.
An important aspect emphasized by the Consumer Union is the difference between the service charge and the tip. The service charge is a fixed amount that appears on the bill, usually between ten and fifteen percent of the total.
These costs not only cover the service but also the overall experience and ambiance provided by the establishment. Most establishments that charge a service fee clearly state this on the menu. As a consumer, you are not obligated to pay these charges if they are not clearly visible on the menu or price list.
Regarding the distribution of the service charge, each establishment decides how this is done. Some distribute the entire amount among the staff, while others retain a portion for the business and distribute the rest among the employees.
Tip
On the other hand, the tip is a voluntary additional payment from the customer to the staff as a token of appreciation for their service and friendliness. It is not mandatory.
Nowadays, many customers pay with a payment terminal or swipe machine. If the tip is paid through such a device and cannot be separately recorded, it can lead to tax obligations for the establishment owner. Therefore, it is recommended to give the tip in cash if possible.
Finally, the Consumer Union emphasizes that since 2014, it has been mandatory to include the Turnover Tax (OB) in the price of food and drinks.