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Create and manage taxes

Set up and manage different taxes in your booking engine.

Updated over 10 months ago

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

  1. Go to My Apps > Direct Booking > Setup > Property > Taxes

  2. Click Create and enter name and type (percentage or fixed amount) and where tax should be applied (everything, rooms, extras, etc.)

  3. Click Create

Edit

  1. Click on the tax name

  2. Edit tax details and Save changes

Delete

  1. Click on the tax name

  2. Click Delete

  3. 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

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