Rate Type Tax is an option available for Tax Exclusive properties to set an alternate tax rule on a Rate Type.

Overview

Rate Type Taxes override the Tax on the Category and can be setup on a Standalone Rate Type, Derived Rate Type or Property Rate Type Rule.

Alternate Taxes and are only available on Stand Alone Rate Types.

Derived Rates will use the tax setup on the Category.

Inclusive Package Components on a Rate Type will use any Alternate Tax setup instead of the Tax setup on the Sundry Charge.

Rate Type Tax can be setup as Inclusive Tax to reduce the rate amount by the tax amount or with a selected Alternate Tax to use the selected Taxes instead of the Taxes setup on the Category.

Rate Type Tax setup as Inclusive Tax will deduct any Flat Amount and Per Person taxes before calculating Percentage taxes.

Percentage Taxes must be setup with an Inclusive Divisor to be used as a Rate Type Inclusive Tax.

In the below example the Rate Amount is $100 and the Tax Amount is 10%.

More Information

Tax Inclusive will reduce the Rate Amount by the Tax Amount to maintain the final charge to the Guest as the Rate Amount entered on the Rate Table.

Alternate Tax will use the selected Taxes instead of the Taxes setup on the Category.

Percentage Taxes must be setup with an Inclusive Divisor to be used as a Rate Type Inclusive Tax.

Base Rate Override behaviour with "Include all Tax in Rate calculation"

When the Include all Tax in Rate calculation option is selected on a Rate Type, tax is treated as inclusive of the rate. RMS reduces the displayed Base Rate by the allocated tax amount so the final amount paid by the guest equals the Rate Amount entered on the Rate Table.

If a user then applies a Reservation Base Rate Override on a reservation that uses this Rate Type, the value entered is treated as the Total Rate (Base Rate plus allocated tax). The displayed Base Rate is then derived by subtracting the allocated tax from the override.

This is by design. Because Include all Tax in Rate calculation requires the rate to be reduced by the tax amount, the Total Rate becomes the matching target for the override. If the Base Rate were used as the target instead, it would be reduced again on every recalculation.

Worked example

Configuration:

• Rate Type with Include all Tax in Rate calculation selected.
• Allocated tax on the Category or Rate Type: Sales Service Tax 8%, configured as Tax Exclusive.
• The user manually overrides the Base Rate on the reservation to 342.65.

How RMS displays the values on the reservation:

Guide

In the side menu of RMS, go to Charts > Rate Manager.

1. Select 'Rates'.
2. Select 'Rate Types'.
   
    
3. Select a Rate Type.
4. Choose 'Edit'.
   
    
5. Navigate to the 'Tax' tab.
   

Inclusive Tax

6. Select the checkbox 'Include all Tax in Rate calculation'.
7. Select Save\Exit.
   
    

Exclusive Tax

8. Select the checkbox 'Set Custom Tax for this Rate'.
9. Select the Tax.
10. Choose the icon.
    
     
11. Select the Calculation Option.
12. Select 'Save/Exit'.