💡 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.
💡 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.