Tax

Tax

Taxes & Tax groups

Tax Definition:
 A compulsory contribution to state revenue, levied by the government on workers’ income and business profits, or added to the cost of some goods, services, and transactions.

ResRequest provides for any number of independent tax rates.

Tax Rate

Admin > Setup > Code Table > Financials > Tax Rate

Here taxes are named and given their various percentages that get applied to rates and extras within the system. This is also displayed on Proforma and Tax invoices.

To add a new Tax Rate simply add in a description and the percentage in the Tax Rate and click on the save button.

Tax Group

Admin > Setup > Code Table > Financials > Tax Group

Here Tax Groups are named and a combination of tax rates are added to make a tax group.Their various names and percentages that get applied to rates and extras within the system. This may also be displayed on your ResRequest documents.

To add a new Tax Group simply add in a description and add the different Tax Rates to be applied and click on the save button.

Calculations on Taxes in ResRequest

Tax rates and groups are applied to rate components and extras. The chargeable amount of a rate component or extra is always specified inclusive of taxes. To calculate tax amounts, the system calculates the fully exclusive amount and then calculates the amount of each tax from there.

Example:

TAXES
VAT	16%
Catering levy	2%
Total taxes	18%
Calculate exclusive price from inclusive price
Selling price (incl all taxes)	200
Total tax amount	30.51
Fully exclusive price	169.49
Calculate tax amts & incl price from exclusive amt
Exclusive price	169.49
Catering levy amt	3.39
Vat amount	27.12
Inclusive price	200

Tax rates and groups can only be used for charges that are specified as a %.

Any statutory charge that is a fixed amount, e.g. $1,50 per bed night, has to be handled as a rate component or extra.

Accommodation Tax Charges

Taxes on accommodation charges are setup on rates
Under the components tab all components have their own individual tax settings where by it can be set as taxable or not.

When a Tax Rate is applied, the tax group defaults to N/A and visa versa.

Rates charges  in ResRequest are based on components
Components can have either of the following:

• Vat can be applied
• Tax group can be applied

Extra’s  Tax Charges

Both a tax rate and a tax group can be added to an extra if they have been setup in the code tables

Display

Taxes can be shown on both on Proforma and Tax invoices
It can display both Taxes and Tax Tables and can be set out on defaults

Taxes displayed can be shown as either

-Total Tax – Single Value
-Tax Table – Vat Breakdown

It is generally the norm for all taxes to be displayed on financial documents

Please Note :A Tax invoice is only displayed once when displayed. Any other time the Tax invoice is displayed it will show as a Copy Tax Invoice

Have a look at more info on generating your invoices.

When using a Fiscal Machine Tax table should always be displayed.

Reporting

Reporting on Taxes may be done on various reports namely:

• Financial Analysis Report (Folio)
• Tax Analysis Report

The report will break down your taxes as its individual invoicing units and date ranges.

It can be reported on a detail level at folio or at reservation level.
Both these reports can display per item or per day.