A very comprehensive method of setting up taxes has been launched. Please set up your property.
For example, you can set up Bed Tax as 6%, Sales tax as 6.5% and a city tax as $1.00 per night (or per stay). This will allow you to have monthly reports for tax reporting.Setting up taxes
In your admin area go to Rates & Availability > Surcharges. (This may be changed to Surcharges/Taxes by the time you read this.)
You will see your current tax setting. We are going to edit this to be your Bed Tax and then add your sales tax. This must be done in quick succession because this is live and will effect any reservations made on you website.
- Click on details. Change the name to Bed Tax.
- 'Grouped under a Total' will combine tax totals when displayed to guests. For example if the reservation is $100 and sales tax is 6.5% and bed tax is 6% it will just show a total of tax of $12.50. If you set it as Explicitly Itemized then the guest would see a listing for each tax separately.
- 'Mandatory' is a setting that will not allow the tax to be exempt. For example, a non-profit maybe exempt from sales tax and bed tax but not from a city tax. If a tax is set to Eligible for Tax Exemption then, of course, you can exempt reservations from that tax by clicking a check box on the reservation. The process for exempting a reservation is covered below.
Click submit. Your Bed Tax is not set up. Now setup your sales tax.
How to Tax Exempt a reservation
- Click on Add Surcharge.
- Set up Sales Tax following the guidelines above.
You can now exempt a reservation from taxes.
When making a new reservation go to the Rate Information tab. If a tax is set up as Eligible for Tax Exemption then there will be a check box next to the name of the tax. To remove the tax from that reservation, simply click the box.