Understand your taxes setup

To set up the taxes of your rental you will need to consider a variety of different tax concepts - Sales tax/VAT applied to your room price, any additional local taxes, and how to display your prices (Gross or Net). Each of these concepts needs to be set up in a specific section in your Lodgify account. In the following, you will learn where to configure each.

💡 Note: If you are connected to Booking.com, Airbnb, Expedia, or HomeAway/VRBO via the channel manager, taxes will be exported in a specific way. Find out more in the article Taxes and Fees applied in OTAs.

Read about:

• Set up your VAT/Sales Tax for your room price
• Set up any additional taxes
• How to display your prices in the check-out (Gross or Net)
• 📚 Linked Resources

Set up your Sales tax/VAT for your room price

Your Sales tax/VAT is a percentage that is applied only over your room price and is therefore configured in your Rentals section. 

💡 Note: For any additional service such as cleaning fees, you can configure a separate Sales tax directly in the Fee itself. Find out more.

To set this up:

1. Go to your left-hand menu and select Rentals.
2. Select the rental that you want to create the VAT for and select Pricing.
3. Scroll down to the Taxes section, click + Add and Sales tax / VAT.
4. Then, enter the percentage and choose whether to include the sales tax/VAT in your room price or add it as a percentage on top of your room price.
   Example: Your room price is set to €100 per night with a 10% sales tax, and you select:

   Prices excl. Sales Tax	Prices incl. Sales Tax
   Final room price is €100 + 10% = €110	Final room price is €100

5. Then click Save.

💡 Note: This does not define if your prices will be displayed in Gross or Net (see more information below). 

Set up any additional taxes

If you have any additional taxes according to local guidelines and regulations, such as a tourist tax or a dog tax, you can either set them up directly in your rental under the Pricing section by adding a local tax, or you can create and manage them in your Settings section. For more details on how to set these up, check out the article Fees & Rental Taxes.

💡 Note: Remember to never set up your Sales Tax as a local tax.

How to display your prices in the checkout (Gross or Net)

To choose how your VAT/Sales tax is displayed, follow these steps:

1. Go to your left-hand menu and select Settings.
2. Click on Sales Tax/VAT, and choose to display your pricing Gross or Net, then click Save.

How your Sales taxes/VAT are displayed in the checkout depends on your settings. Either the sales tax is included in each listed item (Gross) or listed separately (Net).

💡 Note: This option is by default set to the Gross display.