City taxes are used to charge guests for any local fees and taxes, like the Resort tax for example. When configuring your rates, you can choose if the set room price includes the City tax or not. Depending on your choice, the configured City tax amounts will be added to the room price or they will be deducted from this price. More details about the various tax modes supported by the rates can be found in City Tax Mode.
Clock PMS+ supports several methods of the City tax calculation that can be combined:
- Fixed room price per night;
- Fixed price for a bed per night, differentiated for an adult and child;
- Room price percentage;
Configuration
To configure the parameters of your City tax, go to the Navigation bar and select Settings->All Settings->Charges and taxes->City Tax.
Complete the settings, as follows:
- Skip nights(1) - the set number of nights will be skipped and no City tax will be charged/deducted for these nights;
- Max nights(2)- if the tax is levied up to a certain number of nights, here you can enter the maximum number of nights, for which the City tax will be charged/deducted. The nights beyond this number will not be subject to the City tax.
- Additional Revenue Categories(3) - this setting refers to the Room price percentage method. By default, the percentage tax base is the services of the 'ROOMS' and 'PACKAGES' revenue groups. In addition, you can also add services of the rest of the revenue groups to the tax base.
Example: If you offer a package service (bed and breakfast) and the tax is to be levied on the package price, the room accommodation revenue is registered under the 'ROOMS' revenue group, and the revenue from the breakfast - to the 'FOOD & BEVERAGE' revenue group. To properly calculate the City tax, it is necessary to include the respective revenue category of the breakfast to the tax base.
- Age for reduced children price(4) - you have the possibility to differentiate the amount of tourist tax based on the age of the child. For example, children up to 5 years pay 0.25 and older children pay 0.5. Enter in this field the maximum age (inclusive) of children for the reduced fee.
- Append tax calculation description to Text(5) - if selected, the details of the calculation method are to be added to the tax description. This way the presentation of the tax in documents will be clearer.
- Text(6) - specify the name of the charge representing the tax
- Revenue category(7) - select the revenue category in which to report the city tax accrual. A list displays the values configured in the "City tax" revenue group.
- Currency(8) - select the currency of the tax.
- Tax% (9) - If this local tax is subject to some other tax, specify its rate.
- Tax Code(10) - If the Tax requires separate reporting you can use the Tax Code field. This will add an additional column in your tax report as well as an additional row in the tax table of the Folios.
- Print text(11) - This is the text that will be shown on the Folios of the guests. If empty, the value from field "Text" will be used
- Hide on the posting screen (12) - the city tax charge will not be available to be added manually to the folios.
Tax Amount configuration
To configure the tax amount, in the Tax Seasons section, you need to add a season. Select the start date of the season. If your tax does not change with the season, just define one season and it will apply for the whole year. If over time, changes to the tax amount occur, simply add a new season and set the start date for the new tax rate.
To illustrate how the various tax calculation methods work, we will examine a few examples For all examples, it is supposed that the following City tax option is selected: 'Additional, Separate charge', e.g. the tax is not included in the prices and is charged on top of the room price. In the examples, the 'Append tax calculation description to Text' is activated.
Fixed room price per night
The tax amount does not depend on the number and type of guests. Enter the amount in the "Price per Night".
Example: A booking for 2 nights, guest number: 2 adults and 1 child. The room price is EUR 100, the tax amount is EUR 1 per room per day.
Fixed price for a bed per night
In this case, you can differentiate a price for an adult and a child. Enter the respective amounts in the “Price per Adult” and “Price per Child“ fields.
Example: A booking for 2 nights, guest number: 2 adults and 1 child. The room price is EUR 100, the tax amount is EUR 1 per adult per day and EUR 0.50 per child per day.
Room price percentage
It is calculated as a percentage of the final room price. The tax base is all services of the 'ROOMS' and 'PACKAGES' revenue groups, plus the categories checked in 'Additional Revenue Categories' (3) setting. Enter the percentage amount in the “Percentage” field;
Example: A booking for 2 nights, guest number: 2 adults and 1 child. The room price is EUR 100, the tax amount is 5% the room price.
Complex City tax
You can combine the above 3 methods.
City tax maximum amount restriction
The setting is applicable to the Room price percentage method. Through the fields, you can control the maximum amount of the tax to be applied if the premise is rented. The system will determine the City tax maximum amount as a product of the number of adults and the number of children from the booking, using the maximum values set.
If the percentage tax calculated is higher than the restriction, the restriction value is taken. To use this feature, you need to complete both restriction fields.
Reduced price per Child
In the 'Reduced price per Child' field you can enter the price for a child up to the age entered in the 'Age for reduced Child Price' (4) field. Children of older age will be charged at the price entered in the "Price per Child" field.
Price Ranges
In certain cities or municipalities, the value of the city tax is determined through a tiered approach based on the price per bed or per room. That is, if the price per bed is up to 10 EUR, there is no city tax charge, if it is between 10 and 25 EUR, the price is 0.50 per person, if between 25 and 50 EUR, the price is 1.0 per person, etc.
- To set up price ranges, click the Edit icon in the 'Price range column'.
- select how the price range is determined - by Room price or by Guest price (1) - The price per guest is defined as the price for the room divided by the number of guests in it (adults + children).
- add as many levels as you need based on the local legislation (2)
- enter the ranges that have been defined and set the price for each range.
- in a booking, if the pricing is such that it does not fall into any of the ranges, the default 'price per Adult' and 'price per Child' values set in the season will be used.