Configuring Taxes

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.

How to Configure Taxes

1. Navigate to Settings:
   Go to Settings > Taxes > Add Tax Class.

2. 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)
     
     
     

Available Tax Types

You can select from six Tax Types:

1. VAT/GST

2. Local Tax

3. Tourist Tax (% Percentage)

4. Tourist Tax (Flat Fee)

5. State Tax

6. Room Tax

Customizing Taxes

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.

Attaching Taxes to Properties

Once tax classes are set up:

1. Navigate to PMS > Property > Settings > Property Taxes.

2. Attach the relevant tax class to each property.

Why Configuring Taxes Matters

• 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.