TAX in ResRequest

TAX in ResRequest

Defining TAX rates and groups, apply taxes to rates and extras, displaying TAX on Financial docs, reporting on Taxes>

ResRequest’s tax management capabilities can be used for managing any form of statutory charge that is calculated as a percentage of the amount charged to the customer. Common examples of such charges are VAT, Catering levy, Service charge, Tourism levy and Conservancy fee.

The amount charged to a customer may consist of components that are exempt from any form of tax, others that are subject to a single tax and yet others that are subject to multiple taxes.
ResRequest provides for this range of possibilities by linking every charge to either a Tax Rate (e.g. VAT @ 14%) or a Tax Group (a combination of tax rates, e.g. Vat and Catering Levy). There is no limit to the number of taxes that may be included in a group.

Every charge must be linked to either a tax group or a tax rate, even if the tax rate is 0%.

Charge out rates in ResRequest are always presented as inclusive of all taxes and tax percentages always represent the percentage charged on the fully exclusive rate amount. For example, if the charge out rate on an item is $118 and it is subject to 16% VAT and 2% Catering levy, the system will calculate the exclusive amount as $100, VAT as $16 and Catering levy as $2.

Note that a tax or levy that is calculated as a fixed amount per bed night or per stay, such as Tourism levy of $1.50 per bed night, cannot be managed as a tax rate in the system. Such charges have to be processed as either Rate Components or Extras.

The first step in building your tax management infrastructure is to recognise what tax rates and tax groups are applicable to your business and setting them up in the relevant code tables.

Once these tax codes have been defined, you can set up charge items, which take the form of either Rate Components or Extras. Rate

Components are effectively revenue accounts to which accommodation charges are distributed, e.g. Accommodation, Food & Beverage, Park Fees. Extras are any form of service other than accommodation, e.g. Travel Transfers or Activities.
When setting up either of these types of charge items the system compels you to link them to either a Tax Rate or Tax Group.

When the charges are actually applied in a reservation the system uses the linked tax rates to automatically calculate the applicable amount of tax included in each chargeable amount. You can choose to show or hide these tax values on the Proforma and Tax Invoice documents.

Regardless of whether you show or hide the taxes on these documents, the system records the values and they can be reported on at any level of detail in the financial reports. The Tax Analysis report is designed specifically for the purpose of presenting reservation tax data at various levels of detail. The two Financial Analysis Reports are also able to present tax data, along with all other data of a financial nature.