Complimentary Services and Package Deals


Supplies to provide complimentary services are taxed differently than supplies used to provide package deals.

Complimentary Services

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.

Package Deals

Package deals – when a group of related products or services is sold for one specified price – are taxable.  The customer pays sales tax on the entire cost of the package.

Examples include:

  • A couples package that might include a room, wine, dinner for two, and chocolate
  • A family package that might include a room and free meals for children

Note: Hotels and lodging facilities may purchase inputs for these deals exempt for resale. This includes disposable items because they are included in the taxable price paid by the customer. Give your vendor a completed Form ST3, Certificate of Exemption. Specify the Resale exemption.