City taxes and additional fees

Some cities or regions charge local taxes, city taxes or bed taxes which are then based on a percentage of the accommodation revenue. These  can be entered into the system data and linked to the rate codes. Whenever a reservation is then entered the calculation runs automatically and will be correctly specified on the invoice.

How to proceed

1. System data > POS > Items > Items tab> Add an item

In the System data, add a new article (city tax, bed tax, culture tax, etc.) Please pay attention to the proper allocation of the tax rate (will a further tax rate be added to the duties?).

2. System data > Reservation > Rates > Formulas tab > Add a formula

Define what the calculation is based on by entering a strategy with the applicable percentage value.

"Name" field

Enter a meaningful name for the tax (e.g., "Bed Tax").

"Formula" selection field

By means of the "Formula" selection field, you determine whether or not the tax is included or added to the price, or if it should be split from logis (accommodation) price.  All in all, there are four formula types (see the following examples). Please select a suitable variant!

Logis x% (inclusive)

Logis x% (inclusive): for this variant, the tax is already included in the price.

Example for City Tax price of € 100.00 and an assumed tax rate of 5%):

• € 100 = 105%

• 100% = (100/105*100)= € 95.24  Logis (accommodation)

• 5% = (100/105*5) = € 4.76  City Tax

• Total price = € 100

Logis (Accommodation) and city taxes will appear on the invoice as follows:

Logis x% (exclusive)

The tax will be added to the logis (accommodation) price using the Logis x% (exclusive) variant.

Example for City Tax (assuming a logis (accommodation) price of €100.00 and an assumed tax rate of 5%):

• € 100 = 100%

• 100% = (100/100*100)= € 100  accommodation

• 5% = (100/100*5) = € 5  City Tax

• Total price = € 105

Logis (Accommodation) and city taxes will appear on the invoice as follows:

Split from Accommodation Price

The Split from Accommodation splits the tax from the logis (accommodation) price.

Example for City Tax (assuming a logis (accommodation) price of €100.00 and an assumed tax rate of 5%):

• € 100 = 100%

• 95% = (100/100*95)= € 95  accommodation

• 5% = (100/100*5) = € 5  City Tax

• Total price = € 100

Logis (Accommodation) and city taxes will appear on the invoice as follows:

Split from Full Price

For this variant, the tax is split from the full price, i.e., during calculation, the breakfast or additional services will be included in the basic value.

3. System Data > Reservation > Rates > Advanced pricing > Calculations > Add

1. In the rate system data, create new Item calculation for the applicable duties (e.g., city tax, bed tax, culture tax, etc...):
   

2. Open the Item tab in the newly created article calculation.

3. Then click on [Add] in the article tab.

4. Article: Select the previously created article (e.g., city tax, bed tax, culture tax, etc.).

5. Posting text: Set the Posting text drop down menu to "Split package".

6. Posting per: Select the entered formula.

7. Price: As the value is calculated automatically, please leave the rate at 0.00 EUR.

8. Confirm the dialog with OK.

9. Allocate the new calculations to your rate codes calculations (System Data > Pricing> Room Rate deluxe > Select rate > Calculations> Apply calculation).

Whenever you enter a reservation now and select a rate code with a local tax, the room rate is adjusted accordingly and will show on the invoice.

Additional fees report

In protel Air Reporting, there is a separate report for calculating and displaying the additional fees.