Tax-Inclusive Rates and Tax Presentation (Cloud)
Some countries require room rates to be displayed with taxes already included in the selling price. Visual Matrix supports tax-inclusive pricing by calculating the tax portion within the room rate rather than adding it separately. These settings control how tax-inclusive rates are calculated, displayed on folios, and maintained when tax rates change.
Path: Management > Property Settings > Taxes Settings > Taxing Structure
Enable Tax-Inclusive Rates
All Rates Charges are tax-inclusive
When enabled, all room rates within the property are considered tax-inclusive.
This setting applies to the entire property and cannot be configured differently by rate plan.
Tax-Exclusive Example
- Room Rate: $100.00
- Revenue Tax: 10%
Guest Pays:
- Room Revenue: $100.00
- Revenue Tax: $10.00
- Total: $110.00
Tax-Inclusive Example
- Room Rate: $110.00
- Revenue Tax: 10%
Visual Matrix Calculates:
- Room Revenue: $100.00
- Revenue Tax: $10.00
- Total: $110.00
In this example, the tax is included within the selling price rather than being added on top of the room rate.
Revenue Tax Limitations for Tax-Inclusive Properties
When tax-inclusive pricing is enabled, Visual Matrix can only recognize one single Revenue Tax Code within the tax-inclusive calculation.
Tax-exclusive properties can apply multiple Revenue Tax Codes independently.
Example:
Tax Code | Percentage |
State Tax | 6% |
County Tax | 2% |
Tourism Tax | 1% |
Tax-inclusive properties must use a single Revenue Tax Code that represents the combined tax percentage.
Example:
| Tax Code | Percentage |
| Combined Revenue Tax | 9% |
If multiple taxes are required, the tax percentages should be combined into a single Revenue Tax Code or configured using other methods, such as Flat Taxes or Fixed Fees, depending on the property's requirements.
Configure Folio Tax Presentation
Suppress Taxes on Folio
Removes the tax recap section from tax-inclusive guest folios.
Taxes continue to be calculated and posted normally within the PMS. Only the tax recap section displayed on the folio is hidden.
This option is commonly used by properties that do not want the tax allocation displayed separately on guest-facing documents.
Tax Name
Defines the label displayed in the tax recap section of tax-inclusive folios.
This name appears as the tax column heading in the folio summary that displays the net amount, tax amount, and total charge.
Common examples include: GST, VAT, TVA
This setting is only used in the tax recap section displayed on tax-inclusive folios. If Suppress Taxes on Folio is enabled, the tax recap section is not displayed.
Schedule a Future Revenue Tax Change
Properties using tax-inclusive pricing can schedule future tax percentage changes without manually updating reservations.
- Effective Revenue Tax Date: Select the date when the new revenue tax percentage should become active.
- New Revenue Tax %: Enter the revenue tax percentage that should take effect on the selected date. Reservations with stay dates on or after the effective date automatically use the new tax percentage.
Example:
- Current Revenue Tax: 10%
- New Revenue Tax: 12%
- Effective Date: January 1
A reservation staying on January 10 automatically uses the new 12% tax rate.
The guest's selling price remains unchanged, but Visual Matrix recalculates the revenue and tax portions within the tax-inclusive rate.
If the property distributes rates through an OTA, CRS, Channel Manager, or other external distribution platform, the tax change must also be updated outside of Visual Matrix.
For tax-inclusive properties, the tax percentage is built into the selling rate. Depending on how the external system is configured, the property may need to:
- Update the tax percentage used by the external platform.
- Increase room rates to account for the new tax amount.
- Adjust rate calculations so the correct net revenue is maintained.
Failing to update the external platform may result in rate discrepancies between Visual Matrix and the property's distribution channels.
Save Changes
After modifying the Taxing Structure settings, click Save at the top of the page to store your changes. Unsaved changes will not be applied to the property configuration.
Understanding the Settings
Setting | Purpose |
All Rates Charges are tax-inclusive | Enables tax-inclusive pricing throughout the property. |
Suppress Taxes on Folio | Hides the tax recap section on tax-inclusive folios. |
Tax Name | Defines the label displayed in the folio tax recap section. |
Effective Revenue Tax Date | Defines when a future tax rate becomes active. |
New Revenue Tax % | Defines the future revenue tax percentage. |
Still Need Help With This Topic?
Ask Yourself:
- Does your property operate using tax-inclusive pricing?
- Does local legislation require taxes to be included in the selling rate?
- Do you want the tax recap section displayed on guest folios?
- Will a future tax percentage change need to be scheduled?
Support May Ask You:
- Is All Rates Charges are Tax Inclusive enabled?
- What revenue tax percentage should be used?
- What date should the new tax rate become effective?
- Is the property using a single Revenue Tax Code for tax-inclusive calculations?
- Should the tax recap section appear on guest folios?
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