New Flexibility in Taxes on Items for Sale and Fees
August 28, 2012
By
John
It is now possible to set exactly which taxes (if any) apply to Items for Sale and Fees. Previously, we had just one setting taxable or non-taxable. Now, to set as non-taxable, just don’t check any taxes to apply to the item. Otherwise, check the taxes that should apply. This allows for greater flexibility and is more straightforward when setting up the three areas where taxes may apply (Rate Plans, Items for Sale, and Fees). Each section is the same now; just check which taxes to apply.
Example of selecting which taxes in the Item for Sale settings screen:
When adding an Item for Sale or Fee on the fly to a reservation, it is also possible to select which taxes to apply. Example:
We have converted all the old taxable/non-taxable settings to use this new system. This can be double-checked by looking at your Items For Sale settings (under Website tab) and verifying the correct taxes to apply are checked. And the same goes for Fees (under Properties tab).
ReservationKey has rolled out a powerful enhancement: new flexibility in taxes on items for sale and fees. Previously, users were limited to a simple “taxable” or “non‑taxable” option. Now, you can select exactly which taxes apply to each item or fee in your reservation system reservationkey.com. This change offers improved precision, compliance, and control.
Fine-Tuned Control: You can now assign specific taxes to individual items or fees—no blanket setting required.
Improved Accuracy: Helps ensure fees like cleaning, parking, or add-ons carry the correct tax burden.
Regulatory Compliance: Streamlines meeting diverse tax rules across regions and line items.
Enhanced Reporting: Taxes are neatly segmented in financial reports, helping with faster audits and reconciliations.
How It Works
Set up taxes in the “Taxes” section of ReservationKey’s system guide. Each tax type can be percentage‑based, fixed‑dollar, nightly fee, or per person/night .
Link specific taxes to Items for Sale or Fees by ticking checkboxes—you decide which taxes apply .
On‑the‑fly selection: When adding an item or fee during a booking, you can choose applicable taxes in the same way reservationkey.com.
System migration: ReservationKey converted all previous taxable/non-taxable settings to the new flexible format automatically reservationkey.com.
User Guide Overview: Taxes in ReservationKey
Taxes are listed in the Tax Setup section—showing name, type, and rate.
You can link each tax to rate plans, items, or fees as needed reservationkey.com.
Remove a tax using the delete option on the tax settings screen reservationkey.com.
Support is provided for split-structure and standard taxes reservationkey.com.
Benefits at a Glance
BenefitDescriptionPrecise Tax AllocationAssign specific taxes only where intendedStreamlined ComplianceAligns with local rules and tax structuresBetter ClarityDetailed breakdowns reduce billing errorsEfficient SetupOne-time migration handled seamlessly
Practical Examples
Cleaning Fee: You might apply municipal tax only—no room tax.
Parking Fee: This may require just service tax, not accommodation tax.
Souvenirs/Extras: Automatically pick the right consumer goods taxes.
On-the-Spot Add-ons: During checkout, select applicable taxes for each guest purchase reservationkey.com.
Getting Started
Go to your Tax Setup section and review tax types.
Navigate to Items for Sale (Website tab) or Fees (Properties tab).
Edit each item or fee to select applicable taxes.
Test adding items during reservations to confirm tax selection works smoothly.
Run a sample booking and review both booking details and financial reports for tax accuracy.
Pro Tips
Audit your setup: Confirm each item/fee is correctly taxed after conversion.
Use split taxes for complex local rules—part flat fee, part percentage reservationkey.com.
When tax-included pricing is needed, activate VAT‑included settings separately reservationkey.com.
Enable percentage-based items to apply on tax-inclusive totals for services like insurance
Founded in 2007, ReservationKey was created to offer a simple, yet powerful and affordable solution for managing reservations and displaying availability online. Our goal is to deliver top-quality software that fulfills our users' needs - simple, efficient, and budget-friendly.
