Set Reservation as Tax-Exempt (Cloud)
Marking a reservation as tax-exempt removes applicable taxes from the rate—helpful for qualifying organizations or tax-exempt entities. This process directly impacts all applicable charges on the reservation when performed in VM Cloud.
Path: Front Office > Reservations > Search and Open the Reservation > Scroll down to the "Rate Information" section
Instructions
1. Locate the Tax Status Field: Open the reservation, then scroll down to the Rate Information section.
2. Apply Exemption: Click Exempt in the Tax Status field, select which specific tax or fees to exempt, and enter a reason for the change.
3. Save the Change: Click Save at the bottom of the page. The status will update from Taxable to Exempt.
4. Verify the Status: The Tax Status field now updates to show Tax Exempt.
Tax exemption applies only to room revenue charges. Other taxable items—such as incidentals or add-ons that are not categorized as room revenue—will still post with tax unless they are manually adjusted.
Still need help with this topic?
Ask Yourself:
- Did I open the correct reservation and locate the Rate Information section?
- Did I apply the exemption and respond with a valid reason?
- Did the reservation switch to Exempt after saving?
Support May Ask You:
- Which reservation are you referencing (guest name, confirmation #)?
- What was the reason for tax exemption?
- Were all applicable taxes exempted as expected?
- Do you need assistance verifying the exemption in audit reports?