Overview
Manage your taxes and service fees ensuring compliance with local tax laws and provide clear pricing for your guests.
To configure tax settings, go to My apps > Direct Booking > Setup > Property > Taxes
Only Admin users can manage these settings
Tax information displayed in your guest facing booking engine must be accurate and complete
Local laws determine your tax obligations. Consult an expert for guidance.
Direct Booking tax settings are independent of tax settings in connected channels. Update channel extranets accordingly.
Creating, editing, and deleting taxes
Create
Go to My Apps > Direct Booking > Setup > Property > Taxes
Click Create and enter name and type (percentage or fixed amount) and where tax should be applied (everything, rooms, extras, etc.)
Click Create
Edit
Click on the tax name
Edit tax details and Save changes
Delete
Click on the tax name
Click Delete
Confirm the deletion
Types of taxes
Percentage Tax: calculated on a percentage of the booking cost (VAT/GST/state tax). Enter a value with up to two decimal places.
Fixed Amount: amount added on top of the booking (tourist tax, eco-tax, city tax)
Applying taxes
Percentage Tax: Choose where to apply (everything, rooms, extras) by ticking the appropriate boxes
Fixed Amount: Select how to apply (per booking, person, room, etc.) from the dropdown list
Handling tax changes
Update tax settings promptly if regulations change
Manually adjust settings for temporary or seasonal tax changes
Understand how tax application differs for various payment scenarios (prepaid, partial deposit, etc.).
Non-refundable bookings
Taxes shown to guests at time of booking are correct
If you don’t have a connected payment gateway, you should process the payment before tax changes
Refundable bookings
Taxes shown to guests at time of booking may not match final tax at check-out
Honour the total price quoted at booking by adjusting taxes accurately during check-out
Partial deposits
Deposit will be handled with the correct tax
Recalculate tax for check-out payment separately
If this creates invoicing issues, avoid if your area has seasonal taxes or expected tax changes
Inclusive vs. exclusive tax settings
Choose whether to display prices with taxes included or excluded in your booking engine
Go to Setup > Property > Taxes > Tax settings
Adjust inventory rates accordingly based on your chosen setting
Show rates including Tax and Service Charge on the booking engine
Include Taxes & Service Charge
Guests see: full price upfront, including taxes and fees
Example: a room advertised as $100 with a 10% tax will show as
$110 on the booking engine
Exclude Taxes & Service Charge
Guests see: base price only, taxes and fees added later
Example: a room listed as $100 will show as $100, with $10 tax added at check-out
Enter rates including Tax and Service Charge on Inventory grid
Include Taxes & Service Charges
Benefit: easier to manage with fixed tax rates
Example: enter a rate of 100 including 10% tax, meaning the base price is $90.91
Exclude Taxes & Service Charges
Benefit: may be preferred if tax rates change frequently
Example: enter a rate of 100 excluding tax, meaning the final price with 10% tax is $110
Zero-rated percentage tax
Used for taxable items with a current tax rate of 0%
Common in regions that use VAT
Created and displayed similar to other percentage taxes