Tax/VAT Configuration

The Tax Configuration field allows you to control the tax fees for each reservation. You can add a single tax or multiple taxes on account level (for it to be applied to all of your listings). Alternatively, you can disable the account level taxes on a specific listing or set its own tax fees. Based on the settings, the applicable tax amounts will be detailed per reservation in its Financials tab.

Taxes are not applied to reservations from Airbnb

Adding taxes

Step 1: Select Listing or Account Level settings

To add an account level taxes, go to Account > System Settings > Financials tab > Tax Configuration. Account level settings will apply to all active listings.

To add listing level taxes, go to the Listing > Settings > Scroll down to Tax Configuration. Choose to apply account level taxes for this listing (default), or set other taxes for this listing only.

Step 2: Select a tax type

There are 5 predefined types of taxes that can be selected, and an option to add custom types.

The Tax Type drop-down allows the following selections:

  1. Local tax
  2. City tax
  3. VAT
  4. Goods and Services Tax
  5. Tourism Tax
Step 3: Define Tax Amount

Select a fixed price or percentage value that will be added to the pre-tax base price. Multiple taxes will all be calculated from the base price.

Step 4: Define Calculation

Define how the tax will be charged:

  1. Per night - tax amount will be multiplied by the number of nights in the reservation
  2. Per stay - tax amount be added once for the reservation
  3. Per guest - tax amount will be multiplied by the number of guests in the reservation
  4. Per guest per night - tax amount will be multiplied by the number of guests and nights in the reservation
Step 5: Save Settings

The last step is to save the setting each time a new tax is defined.

 

FAQs

How to add another tax?

Click the Add button to create another tax field. When set at an account level, all of your new reservations will include all the tax fields defined.

How to edit an existing tax setting?

Go to Account >  System Settings > Financials tab. Locate the Tax Configuration section and click on the tax line, edit the settings fields and save. You can perform the same action on a specific listing by going to the ‘Settings’ tab in your listing’s page.

How to delete a tax field?

Click on the tax field and then follow by clicking the ‘delete’ button. This tax field will no longer be added to your reservations.

How to disable an account tax on a specific listing?
  1. Go to the desired listing details page
  2. In the Settings tab, Scroll down to Tax Configuration
  3. Toggle off Use Account Financials Settings
How to set a tax fee for a specific listing?
  1. Go to the desired listing details page
  2. In the Settings tab, Scroll down to Tax Configuration
  3. Click the Add button to add a new tax field.

 

This new tax will apply only to incoming reservations for this listing.

Best Practice

Using Taxes with Booking.com and Expedia

Booking.com and Expedia charge the guest and then pay us. The rates that we send to them include VAT. In order to set the taxes across all the channels, you need to set the same value in Booking.com and Expedia itself (even though the tax settings will be pushed to RU, you still need it set up in the channel themselves).

This will not affect the rate that is sent to Booking.com and Expedia. The nightly rate will be the same and they (the channels) will add the applicable taxes after a reservation is made. The values have to match with ours (this is how Guesty reads and handles taxes).