Properly setting up your taxes is crucial before going live with your properties. It ensures compliance with local regulations, good financial management, and transparency for your guests.
Navigate to Settings:
Go to Settings > Taxes > Add Tax Class.
Create a Tax Class:
NOTE: A 'Tax Class' represents a single tax or a grouping of taxes. You can only apply one Tax Class to a property, so it should include all applicable taxes. You can add more than one tax type to a tax class!
Name your tax class (this name is internal and will not be visible to guests).
Click ADD TAX to start configuring your taxes. (You can attach more than one tax type to a Tax Class)
You can select from six Tax Types:
VAT/GST
Local Tax
Tourist Tax (% Percentage)
Tourist Tax (Flat Fee)
State Tax
Room Tax
Taxes can be tailored for diverse portfolios. For example:
Portfolio with 10 properties:
USA Properties: Create a tax class named USA Tax, which includes State Tax, VAT/GST, and Tourist Flat Tax.
European Properties: Create another tax class named Europe Tax, with VAT and Room Tax.
You can define taxes based on:
Per Person Per Night
Per Person Per Stay
Per Night
Additionally, you can configure taxes to:
Be included or excluded from the price.
Once tax classes are set up:
Navigate to PMS > Property > Settings > Property Taxes.
Attach the relevant tax class to each property.
Regulatory Compliance: Meet local tax obligations.
Financial Clarity: Streamline financial reporting and management.
Guest Transparency: Build trust with clear pricing and tax details.
Take the time to configure your taxes accurately to avoid complications and ensure a smooth operation.