** Understanding Property Tax Settings (Cloud)

** Understanding Property Tax Settings (Cloud)

Properties can configure several different types of taxes in Visual Matrix. Each tax type serves a different purpose and is applied in a different way. Understanding the differences between Revenue Taxes, Sales Taxes, Flat Taxes, and Tax-Inclusive Rates helps ensure taxes are configured correctly and reported accurately. The Property Taxes screen is divided into four areas.
Path: Management > Property Settings > Taxes Settings



Revenue Tax Codes

Revenue Taxes are percentage-based taxes typically applied to room revenue.
Common uses include:
  1. Lodging Tax.
  2. Occupancy Tax.
  3. Hotel Tax.
  4. Tourism Tax applied to room revenue.
Revenue Tax Codes can:
  1. Apply percentage-based taxes.
  2. Support tax reductions and exemptions.
  3. Support tax-inclusive pricing.
  4. Be assigned to revenue accounting codes.
For more information, see:
  1. Revenue Tax Settings (Cloud)
  2. Revenue Tax Exemptions and Reductions (Cloud)

Sales Tax Codes

Sales Taxes are percentage-based taxes applied to non-room revenue transactions.
Common uses include:
  1. Restaurant sales.
  2. Retail sales.
  3. Parking charges.
  4. Other taxable services.
Sales Tax Codes:
  1. Are assigned through Accounting Code Setup.
  2. Can apply up to two Sales Tax Codes to a single accounting code.
  3. Do not support tax reductions or exemptions.
  4. Do not participate in tax-inclusive calculations.
For more information, see:
  1. Sales Tax Settings (Cloud)

Flat Tax Codes

Flat Taxes are fixed-dollar charges automatically posted per room, per night.
Common uses include:
  1. Tourism Fees.
  2. City Assessment Fees.
  3. Municipal Charges.
  4. Fixed Occupancy Fees.
Flat Taxes:
  1. Are not percentage-based.
  2. Are not assigned to revenue accounting codes.
  3. Are automatically posted during Night Audit.
  4. Apply to every occupied room each night.
For more information, see:
  1. Flat Tax Settings (Cloud)

Tax-Inclusive Rates

Tax-Inclusive Rates allow taxes to be included within the room rate rather than added separately.
This option is commonly used in countries where advertised rates must already include taxes.
Tax-Inclusive Rates:
  1. Apply to the entire property.
  2. Use a single Revenue Tax Code.
  3. Allow tax presentation options on guest folios.
  4. Support future tax rate changes.
For more information, see:
  1. Tax-Inclusive Rates and Tax Presentation (Cloud)

Choosing the Correct Tax Type

Use the following table to determine which tax type best fits your requirements.
Requirement
Recommended Tax Type
Percentage-based tax on room revenue
Revenue Tax
Percentage-based tax on restaurant, retail, or service charges
Sales Tax
Fixed dollar amount charged per room, per night
Flat Tax
Taxes included within the advertised room rate
Tax-Inclusive Rates
Tax exemption after a qualifying number of nights
Revenue Tax Exemptions and Reductions

Quick Comparison

Feature
Revenue Tax
Sales Tax
Flat Tax
Percentage-Based
Yes
Yes
No
Fixed Dollar Amount
No
No
Yes
Assigned to Accounting Codes
Yes
Yes
No
Supports Tax Exemptions
Yes
No
No
Supports Tax-Inclusive Pricing
Yes
No
No
Posted During Night Audit
Yes
No
Yes
Per Room Per Night
No
No
Yes

Still Need Help With This Topic?

Ask Yourself:
  1. Are you taxing room revenue or non-room revenue?
  2. Does the tax need to be percentage-based or a fixed dollar amount?
  3. Is the tax charged per room, per night?
  4. Does your jurisdiction require tax-inclusive pricing?
  5. Are tax exemptions required for extended stays?
Support May Ask You:
  1. What type of tax are you trying to configure?
  2. Is the tax applied to room revenue or another charge?
  3. Should the tax be percentage-based or a fixed amount?
  4. Is the property using tax-inclusive rates?
  5. Are tax reductions or exemptions required?
  1. Revenue Tax Settings (Cloud)
  2. Revenue Tax Exemptions and Reductions (Cloud)
  3. Tax-Inclusive Rates and Tax Presentation (Cloud)
  4. Sales Tax Settings (Cloud)
  5. Flat Tax Settings (Cloud)

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