There are 3 different ways to add taxes to your rates. The first two are used for percentage taxes, while the third is used for fixed taxes.

1. Surcharges

Use this option if you want to display the room price without tax. The tax will be added on top of the displayed price later and separately. This setting is typically used in USA/Canada. Several surcharges can be used per room type or extra. You can add them under Settings -> Financials -> Surcharges.

Surcharges are automatically added to room types and extras, so if you don’t want the surcharge to be applied to a room or an extra, you can tick the box in the room type/extra settings.

Example: if the price is $50 and the surcharge is 20%, the displayed price for the room type in the booking engine will be $50. But the total will be $60 because the 20% (in this case $10) will be added to the price .

2. Taxes Included

Use this option if you want the tax to be included in the displayed room price. This is typically used in Europe. Only one tax can be used per room type or extra. You can add it under Settings -> Financials -> Taxes included.

Then go to the room type/extra setting and select the tax from the drop down menu.

Example: if the price is $50 and the tax is 20%, the displayed price for the room type in the booking engine will be $50. The total will also be $50, because the 20% are already included (which means, that the $50 are actually 120%).

Note: Under “Tax Settings”, you can define the default tax rates used for new rooms and extras, or when adding other items (like additional custom rows to an invoice). You can still select different tax rates manually.

3. Extras

Use this option if you have a fixed amount that needs to be added as a tax – either as a fee per night or per person or a one-time fee. You can add it under Settings -> Extras.