Tax groups represent a combination of individual tax extras which may be applied to a Rate Component e.g. a component may be subject to multiple taxes such as Catering levy and Service charge.
Note that the system calculates each tax value from the fully exclusive amount. To calculate the exclusive amount, the system takes the published rate amount (which is inclusive of all taxes) and deducts the combined tax value that is included in the rate. For example, if the published rate is $116, inclusive of 14% VAT and 2% Catering Levy, the exclusive amount is $100, VAT = $14 and CL = $2.
In order to set up, edit or delete rate types, navigate through ResRequest to the Tax group screen: Admin > Setup > Code tables > Financials > Tax group.
Creating a Tax group
From the main screen you can create Tax groups.
Click on the ‘Tax Rates’ button to open the pop-up where you can apply individual tax rates.
The name of the tax group
A short name to be used in the various reports.
Select a Tax rate from the list set up on the Tax rate code table.
Editing Tax Group
All new applications of this Tax Group will use the edited rate. All existing bookings already using this Tax rate will apply the old settings but if you select the Regenerating folios or Regenerating itinerary button on the booking, the new / edited tax group will apply.
Delete Tax Group
If the Tax group has not been used in rates applied on bookings, then it will be deleted permanently. If the Tax group has been used, it will still appear in the list but will be marked as inactive. This means it will continue to apply to rates where it has already been used but will no longer be available for new rate setups.