How do I handle multiple tax rates on one reservation?
I have a new situation with our local taxes. I need the ability to charge 3 different tax rates on different items. We have three different taxing authorities, and different items are exempt from certain taxes. I was charging all three taxes on all items, but a recent audit informed me that I was over charging.
I have one tax amount for rental (13.12%), another tax amount for cleaning (12%), and a third tax amount for optional add-ons (7%). This is how the tax offices have told me I need to charge.
The problem is, I don’t know how to do this within MyVR. Any suggestions?
@Jenny-Oest Our tool will apply all fees you mark as a tax to any other item that is taxable, so there can be only one tax rate applied to taxable items.
In your situation, I would suggest including the tax in the fee’s price for those fees that have a special tax rate, and then marking them as not taxable so that your tax fees are not applied. For example, if your general tax rate is 13.12% and your cleaning fee is $100 but should be taxed at 12%, then make your cleaning fee $112 and you can change the name to “Cleaning Fee (includes tax)” as well as mark “Include in Tax Calculation” as No.
@Markus-Nordvik - I decided this morning that’s what I would have to do, but if I eventually integrate with an accounting tool, that probably won’t work. It’s certainly made a MESS of my Quickbooks, because I have the same problem there - one tax rate and one class per invoice, so I have to invoice every item separately. UGH.
I can often end up with 4-5 invoices per reservation! And with every reservation I’ll have at least three. My head hurts. LOL
@Jenny-Oest That does not sound fun. If others have this sort of highly complex and compartmentalized tax setup, we’d love for you to submit a feature request to let us know.
My situation comes from having FL state sales tax, but then also the county Tourist Development Tax, and a City Business Tax. They all three tax different things. If you’re operating in FL, there’s a very good chance this would apply.
The easiest fix (my current situation) is to continue to quote and overcharge the guests. Beats under charging them.