Tax group

Use the Tax Groups page to create and maintain tax groups. Tax groups enable the grouping together of multiple, conditional tax charges that must be posted to guest accounts based on a date range that specifies when the tax is effective . Tax groups also specify the tax rules that are used to calculate taxes on folio charges. This functionality is used to calculate the proper taxes for future reservations in the event there is a scheduled tax requirement change, and also enables the system to correct past tax invoices using the correct tax rates when tax requirements change after the creation of an invoice.

Note: Grouping taxes by Effective Date range supports tax law requirements in countries where Value added tax (VAT) and/or Goods and services tax (GST) are assessed.

The tax groups are linked to transaction codes and automatically post an add-on type charge when the transaction code is posted. For example, the tax group Room Tax, when linked to room revenue, is also posted when room transaction codes are posted.