1. Taxes overview
· Taxes allow properties to set up additional charges applied on top of the room rate, ensuring accurate and compliant pricing across all bookings. The feature supports two tax types: flat tax and slab tax, giving properties the flexibility to configure taxes in a way that best suits their pricing structure and regulatory requirements.
o Flat tax, applies a fixed charge on top of the booking total, configurable as either a percentage (%) or a fixed dollar amount ($).
o Slab tax, is calculated based on defined price ranges, applying different tax rates depending on where the booking total falls within those ranges - allowing for more tiered and precise tax calculations.
· Key Features:
· Automatic calculation and applied to bookings, eliminating the need for manual tax calculations and reducing the risk of pricing errors
· Clear display to guests throughout the booking process, ensuring full transparency of all charges before a reservation is confirmed
· Flexible Supports two tax types, giving more control on setting taxes that align with their local regulations and pricing structure
2. Additional tax settings
· Tax on tax is when a secondary tax is calculated on top of a tax, essentially the second tax is applied on top of the first tax - meaning the guest is effectively being taxed on a taxed amount.
o Example: A country has 3 types of applicable taxes on the room rate:
o Municipality Tax @ 10%
o Service Charge @ 10%
o VAT @ 5%
o VAT tax also applies to Service Charge. In this case, there is tax on top of the Service Charge tax (Tax on Tax).
· Tourism Fee/Tourism a charge imposed on guests, on arrival can be used to fund and support local tourism attractions, and services within the destination.
· Tourism fee is collected by the property and not included in the total booking amount. Guests will see the Tourism fee before confirming booking, and on the booking confirmation email
3. Step-by-step: Creating Taxes
· Step 1 - Navigate to Taxes
· Login to extranet > Settings > Property Profile > Taxes
· Step 2 – Create Taxes
· Click the ‘+’ icon to create Tax, or select the drop-down menu to select another tax type. Each tax will have a slight variation on details
· Step 2.a – Taxes setup
o Tax name
o Tax description
o Tax type – Flat or Slab
o Setting - + or %
o Amount
o Date range
o Taxable surcharge – select this if Tax on Tax should apply to this tax setup.
o SAVE
· Step 2.b - Tax on tax
o Description
o Date range
o Setting - + or %
o Amount
o SAVE
o Once your Tax on Tax has been created, apply it by editing the relevant tax and enabling the Taxable Surcharge option
· Step 2.c – Tourism Fee
o Setting - + or %
o Amount
o Pricing type – Per night or Per stay
o Date range
o SAVE
4. Display of taxes during the booking process
· Booking Engine taxes display
· All taxes visible on the guest details page, once the customer has selected the room type they want
· Outlined as a separate charge/line next to the total booking value, providing full visibility to guests
· When multiple taxes applied, these are clustered within taxes – expand to see all
· Tourism Fee indicated as a separate note, outlining the booking total excludes Tourism fee
· CRS taxes display
· Tax and Tax on tax details are visible during the booking process, within the rates section
· Property has option to amend tax amount, if needed
· Each tax listed separately, ensuring full visibility and transparency
· The payment link sent to the guest will reflect all applicable tax and tax on tax charges, as these are included in the overall booking total. This can be accessed via the payment link icon within the booking overview.
5. Confirmed bookings – display of Taxes
· Taxes are visible within channel manager for both Booking Engine and CRS bookings
· Channel manager display - Navigate to Bookings
· Login to extranet > Bookings
· Click booking to open
· Within the ‘Billing’ section you will see all charges applied to booking, including taxes
· Confirmation email display
· Displayed on the booking confirmation email below subtotal, ensuring guests have a clear and transparent breakdown of all charges at hand.
· The property also receives the same confirmation email, ensuring full visibility of the charge details communicated to the guest.
6. Additional information about taxes:
· Option to send rates inclusive of taxes to connected channels available, need to enable applicable tax is Channel mapping module
· All tax types apply to bookings made via Booking Engine or within the Channel manager (CRS)
· CRS bookings will indicate Tourism fees to the guest on the confirmation email
· Tax value passed to PMS – some may receive in the total booking value rather than separate tag