Void Tax on a Folio (Cloud)

Void Tax on a Folio (Cloud)

When tax appears in a folio, it's often automatically recorded as a secondary fee linked to another code. This tax is categorized as a secondary posting, triggered by a transaction like a Room Charge or a taxable miscellaneous item. Consequently, trying to void the tax as a separate entry is not feasible.
If your intention is solely to remove the tax, indicating a desire to change the classification of a posted sale or code from taxable to non-taxable, you have two options. You can either use a tax adjustment code or adjust the Tax Exempt status in the reservation to indicate exemption. In both cases, the charge must be voided and then re-entered without the associated tax. Additionally, if necessary, you can modify the relevant code in the Accounting Code Setup to apply changes to future transactions.
Path: Front Office > Cashiering > Guest Account > In-House Guests > Open a Folio

If you try to void the tax only, an error message will show:

Void Tax on a Room Charge Revenue

1. Void the Entire Room Charge which will void the tax with it 

2-4. Go to the reservation and change the status from Taxable to Exempt.

5. Go back to the folio and repost the room charge revenue using the room and tax button from the toolbox.

Even if the room is already checked out, the Tax status can still be modified.
If the tax exemption is applied following a correction, it will NOT be recognized as a tax-exempt sale and will not show on the Tax Exempt report.
The exemption has to be set up on the day of check-in and posted either during the audit or using the Post room and tax button.

Void Tax on any other Sale

If the sale is set to be taxable, you need to know if the sale is supposed to be taxable.
If it is not, then you can change the tax status in the accounting code setup screen: Setup a New Accounting Code (Cloud | Video)
Once the accounting code is corrected, open the folio, void, and repost the sale fee. It will now be posted as a non-taxable item.

What about Tax Adjustment codes?

Although they do exist by default in Visual Matrix, it is not the shortcut we advise to use.
But if you have several nights or an important amount of taxes to void due to multiple charges, it might be easier (and especially faster) to just post one adjustment for the whole amount.

    • Related Articles

    • Post Room and Tax on a Guest Folio (Cloud) 🎥

      ? Watch Video Room and Tax charges are automatically posted during the night audit. While you have the option to manually post this daily charge (A), you can also add Room and Tax charges (B) that are not counted as the daily charge but are added in ...
    • Void a Charge/Payment in a Folio (Cloud) 🎥

      ? Watch Video Voiding a charge is a necessary step when correcting an error, and it involves a process that includes entering the reason why the void is initiated. Only primary charges can be voided, any secondary/associated charges like a tax ...
    • Room Revenue is Tax Exempt but does not show on the Tax Exempt Report

      To show in the Tax-Exempt Revenue Report, the Room Charge Revenue has to be posted by the night audit process. The manual post of the Room Charge tax-exempt (using the RC code within the drop-down menu in a folio), will not result in the Room Charge ...
    • Make a Reservation Tax Exempt (Cloud)

      Setting up a reservation as tax-exempt in a hotel means that the guest making the reservation will not be charged certain taxes that would typically apply to their stay. Path: Front Office > Reservations > Search and Open the Reservation > Scroll ...
    • Adjust a Charge in a Guest Folio (Cloud) 🎥

      ? Watch Video Charges on a hotel folio may need adjustments for various reasons, including correcting errors, addressing guest disputes, providing compensation or discounts, applying for promotions, issuing refunds, accommodating special ...