Sales Tax Overview and Configuration

This article describes how taxes can be calculated in the system.

Overview

Sales tax can be computed on room charges and resources.  Some rooms might be taxable and some rooms are not taxable.  The same can be true for resources, some taxable, some not taxable.  Rooms may be taxable at a different rate than resources.  Catering items (resources) may be taxable at a different rate than another service such as AV rental.   Lastly, some organizations may be non-taxable, regardless of the taxes charged on items in the system. 

Taxes are computed on each occurrence and will be displayed on the confirmation and invoice. They can also be included in analytics revenue reports. 

Configuring Sales Taxes

For the first example, let’s assume that everything that is taxable is charged at the same rate (ie. one sales tax jurisdiction to deal with).  

 

  1. The first step is setting up a sales tax record.  To do this, go to Settings > Tax Codes and press the ‘Add Tax Code’ button. 
    On the next screen, give the tax a description, rate, and an effective date and then press ‘Save’. (Don’t leave the list of Tax Codes screen just yet).Tax Codes
  2. The next step is telling the system which buildings and service providers will be subject to the tax, as well as, each room and resource that the tax applies to.  Press the ‘Manage Tax Codes’ button to begin

Managing Taxes

Manage Taxes

To have the system automatically apply and compute taxes for you navigate through the 4 tabs found on this screen

  • Buildings: Select one or more building via the checkbox on the left of the grid and then press the ‘Apply Tax Code’ button that appears to set the tax. Repeat this until every building that has taxable rooms has a tax code associated to it.  Setting the tax code on the building lets the system know which tax to compute on the taxable rooms in that building.
  • Service Providers: Select one or more service providers via the checkbox on the left of the grid and then press the ‘Apply Tax Code’ button to set the tax.  Setting the tax code on the service provider lets the system know which tax to compute on the taxable resources for that provider.
  • Rooms: Select one or more rooms via the checkbox on the left of the grid and then press the ‘Apply Tax Code’ button to set the tax.  This setting determines whether this room should be subject to the tax that was indicated at the building level.
  • Resources: Select one or more resources via the checkbox on the left of the grid and then press the ‘Apply Tax Code’ button to set the tax.  This setting determines whether the resources  should be subject to the tax that was indicated at the service provider level.

    Tips for Managing Taxes:

  • When selecting rooms, buildings, resources or service providers you can select multiple rows at one time to speed up the process. 
  • You can filter the list of rooms and resources by using the ‘search’ box at the top of the grid. 
  • Use the "Remove Tax" button if you no longer want to charge tax on that item

Applying and Calculating Taxes

Now that you’ve set up a tax code, the system will immediately start to compute taxes for rooms and resources at the appropriate rate, as long as the ‘Apply Taxes’ box is checked when creating a new event.  If you wish to have Apply Taxes set automatically for each new event, check the box at the top of the ‘Manage Tax’ screen.

 

See this article for more information on taxes.