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Sales taxes
Updated over a year ago

💡 Important to know:

  • Percentage based taxes can now be classified as either a Sales or a Non- Sales tax

  • This classification is relevant only for Little Hotelier’s Accounting Export functionality

  • To set up a Percentage based tax as a Sales or a Non-sales tax, go to Front Desk > Setup > Taxes tab > create/edit a Percentage tax > click the Sales Tax checkbox.

  • This feature is not available to Little Hotelier customers in Italy, Germany and Spain.


What is the difference between sales tax and non-sales tax?

  • Little Hotelier has introduced a feature that will allow you to differentiate sales taxes (such as VAT or GST) from Non-sales taxes (such as lodging taxes or conservation fees).

  • A good example of a sales tax would be VAT or GST. It is a consumption-based tax placed on the services provided by a hotelier.

  • In addition to sales taxes, hoteliers also levy other taxes and fees which are not consumption-based, the same way sales taxes are. A good example of such non-sales taxes would be lodging taxes or conservation fees.

  • Sales tax needs to be accurately reflected in the accounting exports uploaded by hoteliers to their accounting package of preference, separate from non-sales taxes.


How do I configure a tax as a sales tax?

  • The distinction of tax being a sales tax or a non-sales tax applies only to percentage based taxes (not relevant for Fixed Taxes).

  • All percentage based taxes setup in Little Hotelier are by default setup as Sales Taxes.

  • To explicitly configure a percentage based tax as a non-sales tax, go to Setup > Taxes.

  • Create a new tax as a percentage tax OR open up an existing percentage tax.

  • Use the Sales Tax checkbox to select or unselect if a particular tax is a Sales Tax.

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💡 By default, all percentage based taxes configured in Little Hotelier are configured as Sales Taxes.


What are the implications of classifying a tax as a sales or non-sales tax?

  • Classifying a percentage based tax as Sales or as a Non-sales tax only impacts the composition of Little Hotelier’s accounting exports.

  • After differentiating Sales Taxes from Non-sales taxes in Little Hotelier Tax Setup; Sales taxes will be represented, imbued within individual line items (rows) of the .csv accounting export; and Non-sales taxes will be represented as dedicated line items.

  • Little Hotelier populates the .csv accounting extracts inclusive of taxes, and by separating non-sales tax from being imbued into line items, the expectation is that accounting software will accurately calculate the sales tax for the respective line item.

⚠️ Note that invoices generated by Little Hotelier will consider both Sales and Non-sales taxes directly applied to the relevant line items.

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