"The toilet does not work."
In a previous sentence, "toilet" meant 厕所 ("bathroom" or "restroom"). This time, however, it should be translated as 马桶。
You're right that this can be 马桶、but in certain situations ("the restroom is out of order") 厕所 is correct.
In most situations, I'd say. It's euphemistic, in a sense, to put that instead of 马桶.