Traditional Culture Encyclopedia - Hotel franchise - If a guest damages carpets, teacups, etc. during his stay and receives compensation, do he have to pay VAT?

If a guest damages carpets, teacups, etc. during his stay and receives compensation, do he have to pay VAT?

If a guest damages carpets, teacups, etc. during his stay, he will have to pay value-added tax upon receipt of compensation

The compensation for damage to items paid by the guest shall be regarded as extra-priced expenses for providing accommodation services, and shall be calculated according to the accommodation price. Taxation of service income.