Understanding your taxes setup

To set up the taxes of your rental you will need to consider a variety of different tax concepts - VAT/Sales tax applied to your room rate, 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.

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Set up your VAT/Sales Tax for your room rate

Your VAT/Sales Tax is a percentage that is applied only over your room rate and is therefore configured in your Rates 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 Main Menu in the top left corner and select Rentals.
  2. Select the rental that you want to create the fee for and select Rates.
  3. Scroll down to the section Sales Tax and switch on the toggle. 2020-02-05_1124.png
  4. Now you can fill in the percentage that you want to apply and select if your room rates already include this Sales Tax or if the percentage will be added on top of your room rate.
    Example: Your room rate is set to €100 per night and you select...
    Prices excl. Sales Tax Prices incl. Sales Tax
    Final room rate is €100 + 10% = €110

    Final room rate is €100

💡 Note: This does not define if your prices will be displayed in Gross or Net

 

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 in the section Fees & Rental Taxes, 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 in this section.

 

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

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

Gross display Net display

Only the total including the Sales tax is shown:

tax_included.png

 

The total cost is shown once inclusive and once exclusive Sales Tax:

tax_excl.png

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

To choose how your VAT/Sales tax is displayed:

  1. Go to your Main Menu in the top left corner and select Settings.
  2. Click on Sales Tax, and choose to display your pricing Gross or Net, then click Save.

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