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How-to apply Sales Tax to Base Price and Fees

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Lodgify Resources Team
  • Updated

In order to apply Sales Tax to both your Base Price and Fees, you need to understand how sales tax works in Lodgify and configure it accordingly.

Understand how Sales Tax is calculated

Sales Tax in Lodgify can be applied in one of two ways:

Sales Tax Inclusive Sales Tax Exclusive

  • The tax is already included in the price shown.

  • It does not increase the visible price.

  • Example:
    Base Price = $100
    10% inclusive tax → total remains $100

  • The tax is added on top of the price shown.

  • It increases the total amount.

  • Example:
    Base Price = $100
    10% exclusive tax → total becomes $110

 

This applies independently to the Base Price and each individual fee (e.g cleaning fee). 

How to configure Sales Tax in Lodgify

Configure Sales Tax for the Base Price Configure Sales Tax for Fees

  1. Go to the Pricing section of your rental.

  2. Scroll down to the Tax section.

  3. Click on Add, then select Sales Tax / VAT.

    Screenshot 2025-05-19 at 12.21.13.png

  4. Choose between inclusive or exclusive.

  5. Set the percentage rate.

    Screenshot 2025-05-19 at 12.21.23.png

  6. Click Save.

  1. In the Pricing section of your rental, scroll to the Fees section.

  2. Create a new fee if not already created.

  3. In the fee configuration panel:

    • Set the Sales Tax to inclusive or exclusive.

    • Enter the percentage.

      Screenshot_2025-05-19_at_12_22_58.png

  4. Click Save.

 

Example:

  • Base Price = $100 with 10% exclusive sales tax

  • Cleaning Fee = $50 with 10% exclusive sales tax
    → Total Sales Tax = $15

Choose how Sales Tax is displayed at checkout

You can choose how the tax appears to guests during the checkout process:

  1. Go to Settings > Sales Tax Display.

  2. Select one of the following display options:

Gross Display Net Display

  • Tax is included in the price shown.

  • Example:
    Base Price = $100 with 10% exclusive tax
    Cleaning Fee = $50 with 10% exclusive sales tax
    → Displayed as
    Base Price $110
    Cleaning Fee $55

    Screenshot 2025-05-19 at 12.26.24.png

  • Tax is shown as a separate line.

  • Example:
    Base Price = $100 with 10% exclusive tax
    Cleaning Fee = $50 with 10% exclusive sales tax
    → Displayed as
    Base Price $100
    Cleaning Fee $50
    Sales Tax$15


    Screenshot_2025-05-19_at_12_25_49.png
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