Set Up and Apply a Tax Exemption

How to set up a Tax Exemption, with or without alternate taxes, and apply it to a reservation in RMS.

Overview

Tax Exemptions are rules that you can set up to prevent selected taxes from being applied when certain conditions are met.

Tax Exemptions require you to set up Taxes in RMS, and you can use them on both Tax Inclusive and Tax Exclusive properties.

You can set up Tax Exemptions to apply to specific taxes, change the taxes applied or make an exemption from all inclusive taxes.

Exemptions from all Inclusive Taxes will prevent any inclusive tax from applying to any charge when you apply an all-inclusive tax exemption on a reservation.

Exempt Taxes will only apply taxes that have not been made exempt when you select this Tax Exemption on a reservation.

Additional Taxes will apply the selected alternate taxes in place of the exempt taxes when you select this Tax Exemption on a reservation.

Any Exempt Taxes will post a transaction line on the account with the amount of 0.00 when a charge is applied that would otherwise include this tax.

Please Note! RMS is highly configurable. Some Terminology, User Access & Permissions, Images, Labels, and Functions used in these articles may differ from your setup. For more information, see Understanding RMS Help Centre Articles.

Set Up a Tax Exemption

You set up a Tax Exemption once, then select it on each reservation it applies to. In the side menu of RMS, go to Setup > Accounting > Tax Exemption.

Select 'Add'.
Enter a Code.
Enter a Short Description.
(Optional) Enter a Long Description.
(Optional) Select the checkbox 'Exemption from All Inclusive Taxes'.
(Optional) Select a Grouping.
Navigate to the 'Properties' tab.
Select the Properties.
Select 'Allocate'.
Select 'Save\Exit'.
(Optional) Set up Exempt Taxes.
(Optional) Set up Additional Taxes.

Set Up Alternate Taxes or Exempt Taxes

A Tax Exemption can replace specific taxes with alternate taxes on the Additional Taxes tab, or exclude specific taxes on the Exempt Taxes tab. Open the Tax Exemption in Setup > Accounting > Tax Exemption.

Navigate to the Additional Taxes tab.
(Optional) Navigate to the Exempt Taxes tab.
Select the taxes to allocate and select 'Allocate'.
Select 'Save/Exit'.

RMS Tax Exemption setup screen on the Additional Taxes tab showing available taxes to allocate as alternate or exempt taxes with the Save/Exit button selected to finish configuring the tax exemption.

Apply a Tax Exemption to a Reservation

You apply a Tax Exemption to an individual reservation from the reservation itself. Taxes are allocated to a Category so they post automatically on the charges for that Category, which means they apply to every reservation in that Category. Selecting a Tax Exemption on a reservation overrides that for the selected reservation only, so exempt and taxable reservations can coexist in the same Category and on the same rate.

Open the Reservation in RMS.

Select a Tax Exemption.
Select 'Save/Exit'.

RMS Reservation screen showing a Tax Exemption dropdown with a specific exemption selected on the reservation header and the Save/Exit button clicked so the chosen tax exemption will apply to charges on this reservation.

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Overview

Set Up a Tax Exemption

Set Up Alternate Taxes or Exempt Taxes

Apply a Tax Exemption to a Reservation

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