Service Charge

Tax Glossary Definition

Service Charge

A service charge is an extra fee added to the cost of a product or service to cover the expense of special assistance or additional features provided to the customer. This charge often appears on the final bill and may include services such as restaurant table service, building maintenance, or added customization on food or other goods.

Example: In a restaurant, a 10% service charge might be included in the total bill to compensate staff for table service.

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