Skip to main content

Tax/Surcharge Options

Setup > Configuration > Guest Ledger > Tax/Surcharge Options

Room Tax Type Consideration (Account 100 Only)

None - The default option, this will charge taxes to Room Revenue accounts as configured in the tax account codes 105 through 109. Click here for information on configuring tax account codes.

Australian long-term accommodation - Select this option for long term accommodation rules as well as GST in Australia. This will automatically reduce the tax rate by 50% after a guest has stayed 30 days.

Reduced Tax Rate after certain number of days - Select this option if taxes are reduced for a guest after they stay a certain number of days. The Account 105 (Sales Tax Override) section highlights when this is selected.

Change tax rate after - Enter the number days the regular tax rate should be applied. (Maximum value of 127)

Percent of Amount - Enter the new tax percentage to be applied.

Change Revenue Account - Enter a room revenue account to post the charges after the number of days specified. For example, enter account code 101 Room Non-Taxable if room charges should not be taxed after a certain number of days. This will also apply Non-Taxable Room Revenue appropriately on all reports. If left blank, the room revenue account will not change and the room revenue account from the guest folio properties will be used.

Note: The room revenue account displayed on the guest folio properties will not change after the specified days. Also, the original room revenue charge type will continue to be displayed on the Room and Tax Posting report (printed after selecting Auto Post Transactions) after the room revenue account being posted has changed.

Also Skip Room/Bed Tax ... Tax Rate 5 (Other Tax Accounts) - Check the appropriate box(es) for other taxes to stop posting after a specific number of days. Unchecked, tax accounts codes will continue to post based on the tax options selected for the original room revenue account code on the folio. For example, if a resort fee is configured as tax account code 109 and selected to be posted with account code 100 - Room Taxable and but not for 101- Room Non-Taxable, when the revenue account changes to 101 - Room Non-Taxable and the Resort Fee is not checked to be skipped, the resort fee will continue to post for the room even though it is not selected for the room revenue account being posted, 101 - Room Non-Taxable.

Taxes after long-term stays are not removed. You can use the Rate Adjustment Wizard on the guest folio and select the Abate All Room Taxes option to create a negative adjustment for all room revenue taxes posted. Do this if no taxes should be collected after a guest stays a certain number of days.

VAT/GST Consideration​

The tax account codes applied must be set as VAT/GST Inclusive for the following options to work correctly.

For Multiple VAT, Charge Tax on Tax - Check this option to apply VAT/GST taxes incrementally. When checked, tax rate 1 is calculated on the price of the item. Tax rate 2 is calculated on the price of the item after tax rate 1 has been applied.

Example: Tax rate 1 is 7.5% and tax rate 2 is 3%. The calculation would be as follows for a $50 purchase:

$50/7.5% = $3.75, so the after tax rate 1 amount is $46.25. This amount divided by tax rate 2 equals $1.39 ($46.25/3%).

Keep Reduced Tax - This works in conjunction with the Reduced Tax Rate after certain number of days option. When selected, the tax amount that is reduced is applied to the room revenue portion of the total, rather than reducing the amount owed by the guest.

Example: After 30 days the tax rate reduces from 12% to 6%. For a room rate of $100, the breakdown of room revenue and taxes would be $89.29 and $10.71, respectively. After the tax rate is reduced the break down would be $94.64 in room revenue and $5.36 in taxes. The guest would be charged $100 per night each night their entire stay.

Unchecked, the amount of the tax reduction is reduced from the daily amount owed by the guest. From the example above, after the tax rate is reduced, the break down would be $89.29 in room revenue and $5.36 in taxes, for a new total of $94.65 per night, rather than the $100 rate.

Note: It is your responsibility to verify local tax laws with the appropriate authority prior to selecting this option.

Revenue Reports contain inclusive taxes - With this option checked, the total stay amount for reports, such as Forecasted Revenue, Reservations by User, Cancellations by User, Pace Booking and Group Sales Cut-Off, will have the tax included.

Tax Priority Account - Optional, enter a tax account code (106 - 109) which will show first in the folio transaction posting if you do not want 105 to appear first. For example, entering 106 here will show 100, then 106, then 105, then 107, etc.

Surcharges/Fees

Global Surcharge/Fee This option allows you to charge a fee (service charge, fee, levy, etc.) to all Room Revenue postings. This would be where a fee is charged on all room accommodations such as a surcharge, a safe fee, energy surcharge, etc. This fee is not a "Tax" but a surcharge not paid to a tax collecting agency.

Account Code - The stipulations for the account code entered here are listed below:

  • The account code must be a Debit.
  • The account code must be active.
  • The account code must not have any tax options checked.
  • The account code must not be attached to the Credit Card Interface or City Ledger.
  • The account code should not be a tax account (106-109)

Charge Type - Select Percent option to charge a percent of the Room Revenue for the surcharge/fee. Select Amount have a flat amount posted.

Amount - Enter the number for either the percentage or the flat amount that will be applied, determined by Charge Type.

Apply to Room Rate before taxes and inclusively taxed - When checked, this option will post the fee immediately after the Room Revenue posting, and then all taxes (105 through 109) will be based on the Room Revenue amount PLUS the fee. If you need to collect tax on the surcharge, select this option. Left unchecked, the fee is posted after the Room Revenue amount and all taxes (105 through 109) have been posted.

Example checked:

Room Revenue $50.00 Surcharge/Fee $ 1.00 Tax (10%) $ 5.10

Example unchecked:

Room Revenue $50.00 Tax (10%) $ 5.00 Surcharge/Fee $ 1.00

Pre-Posting and Credit Card Surcharge/Fee This option is to be used to automatically post a surcharge, along with any taxes, when a credit card payment is posted.

Account Code - The stipulations for the account code entered here are:

  • The account code must be a Debit.
  • The account code must be active.
  • The account code must not be attached to the Credit Card Interface or City Ledger.
  • The account code cannot be a tax account (105-109)

Charge Type - Select the Percent option to charge a percent of the amount posted to the credit card for the surcharge/fee. Select Amount to have a flat amount posted.

Amount 1,2 and 3 - Enter a value for either the percentage or the flat amount that can be applied, determined by Charge Type. Having three amounts allows you to charge different amounts based upon the credit card type, such as 2% for Visa/Mastercard, 4% for American Express and 3% for Visa/Mastercard debit.

Select which amount should be applied to credit card account codes in Setup > Configuration > Guest Ledger > Account Codes > select a credit card account code > Other options tab > Defaults and Warnings.

Notes:

  • The Pre-Posting Surcharge option can ONLY be applied to Credit/Payment account codes and no tax options can be selected.
  • The Pre-Posting Surcharge option can NOT be applied to an account code with the Affects City Ledger option selected.
  • The Post Surcharge Prior to Posting option in Setup > Configuration > Guest Ledger > Account Codes > credit card account code > Other Options tab, needs to be selected for each credit card account code you want to post a surcharge.
  • When used with a credit card processing system, the surcharge amount is included in the amount approved before all postings are made.
  • The surcharge posted is a separate entry from the credit card posting. If the credit card charge is voided, the surcharge will not be voided automatically. Each posting would need to be voided separately, as necessary.
  • The Pre-Posting Surcharge is applied to any credit card posting from an InnQuest Software product EXCEPT WorldLink. Credit card charges from iQ-POS or WebBook will have the surcharge added automatically.
warning

Per Visa, Mastercard, American Express, and Discover merchant agreements, as well as many state laws, it is forbidden to have credit card surcharges in the certain areas. Please consult local laws and contact your merchant service provider regarding their policy on posting surcharges for credit cards PRIOR to using this feature.

Rounding Options

The rounding options allows all "Percent of Amount" tax postings to round the tax amount prior to posting. This rounding factor only affects taxes designated by "Percent of Amount". By default, all tax postings are rounded to the nearest cent (.01) prior to any other rounding factor and final posting. By default, if you need to only round to the nearest cent, this option should not be used.

With the exception of nickel rounding (.05), the rounding factor would be .01 to .04 (round down) and .05 to .09 (round up). For nickel rounding, the rounding factor would be .01 and .02 (round down) and .03 to .04 (round up).

Always Round Up - All postings would round up to the nearest rounding factor, regardless of the remainder's stated above.