Complimentary services (or items) are those given to the customer as a courtesy with no additional charge.
Examples include:
- Complimentary breakfast
- Free birthday dessert
- Free drink in response to a customer complaint
- Shampoo, conditioner, and soap
Note: A complimentary breakfast is when the customer has access to breakfast and the charge for their room stays the same whether they eat the meal or not.
Purchases for Complimentary Services
Hotels and lodging facilities that provide complimentary services must pay sales tax when they buy inputs to those services. This includes disposable items such as plates, napkins, and silverware. See the Taxable Purchases section.
Purchases of Complimentary Items
Hotels or lodging facilities that provide complimentary items must pay sales tax on the purchase of those items.