Financial Reporting: How to set up your Taxes? Follow
Where taxes are being used?
The Taxes are used on 2 levels:
- Used to calculate tax on reservation level: Hostaway channels, Vrbo and Marriott
- For Booking.com, Expedia and Airbnb: The tax % has to be set up in the channel
- Used to calculate taxes for Financial Reporting:
- All channels.
How to add a Tax?
We don't import taxes from channels. That is why you should set them up in Hostaway.
- Go to Settings > Financials and Coupons
- Click on Add Tax
- Select the Tax Type
- Enter the amount
- Choose Type between flat fee or percentage. If percentage, select if it should apply on Base rate and/or cleaning fee
- Save
Note 1: It will apply to reservations imported or created after-tax creation. Reservations made before tax creation will not be calculated.
Note 2: When editing an existing tax in Settings, it will update all unchanged tax on the Listing level.
If you have manually changed the tax for a listing, it can only be edited on a Listing Level. Editing on a Settings level will not update this listing.
Note 3: On Vrbo taxes are shown to guests as TAX even if there are multiple taxes, each and all of them will appear as TAX
IMPORTANT These New Taxes will be used to calculate the tax amount for external channels, for the Financial Reporting. We will not take the tax info that external channels send to us since they are too different depending on the channel.
Also, these taxes are used to calculate the total price for Hostaway channels (direct reservations, Booking Engine and WordPress plugin) and Vrbo. They are also used in financial reporting to calculate tax amounts for external channels.
For Booking.com, we export the Property rent tax % under Listing > Financial fields as well. These taxes apply to all listings unless a different tax is set on the listing page.
For Airbnb and Expedia, taxes have to be managed in the channel directly.
Taxes and fields
|
STANDARD FIELDS |
DESCRIPTION |
|---|---|
|
vat/GST |
European Value Added Tax added over products and services- e.g. in Spain is 21% |
|
hotelTax |
A hotel tax or lodging tax is charged in most of the United States, including California, to travellers when they rent accommodations in a hotel, inn, tourist home or house, motel, or other lodgings, generally, unless the stay is for a period of 30 days or more. |
|
lodgingTax |
A hotel tax or lodging tax is charged in most of the United States, including California, to travelers when they rent accommodations in a hotel, inn, tourist home or house, motel, or other lodgings, generally, unless the stay is for a period of 30 days or more. |
|
salesTax |
sales tax is a tax paid to a governing body for the sales of certain goods and services in the US. A value-added tax (VAT) collected on goods and services is similar to a sales tax. |
|
transientOccupancyTax |
ToT is a tax that is usually combined with hotel and lodging taxes but can also contain other industry-specific taxes. |
|
cityTax/Tourism Tax |
in Europe city tax = tourism tax and it is a tax that the guest pays directly. It is possible to configure this tax as a percentage or as a flat rate |
|
roomTax |
Similar to city tax in Europe or Hotel Tax in the US |
|
otherTaxes |
Any other tax that we are not considering above. |
Recalculating Taxes
You can also recalculate tax for an old or existing reservation if the tax setup was incorrect at the time the reservation was created. Please note that taxes only apply to reservations after being added to the dashboard. In order to have accurate financial reporting, you can choose to apply existing taxes (if they have been updated or changed after a reservation has been created) to reservations of their choice.
This can be done by entering the reservation IDs under Settings > Financials & coupons > Recalculate taxes:
Please make sure that the tax set up on the account or the listing level has been correctly updated before proceeding with the recalculation of tax for required reservations. For internal channels, you can choose whether to update the total reservation price as well.
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