What is Tax on Tax?
Example:
In UAE, there are 3 types of applicable taxes on room rate
- Municipality Tax @ 10%
- Service Charge @ 10%
- VAT @ 5%
VAT tax also applies to Service Charge. In this case there is tax on top of Service Charge tax (Tax on Tax).
How to set up tax on tax?
- Click on ‘Tax on Tax’
- Pop up box > Complete details
How to apply ‘tax on tax’ to an applicable tax?
- Create applicable tax(s) as per normal
- Enable ‘tax on tax surcharge’ where applies
Example:
1. Municipality Tax > 10%
2. Service Charge > 10%
3. VAT > 5%
4. VAT also applies on service charge value > enable ‘tax on tax’ flag for service charge
On booking engine
Guest details page: Price breakdown and Tax info displayed
Payment details page: Click ‘Price breakdown’ to view price breakdown and tax info.
Hover over tax icon to view tax info
- If multiple rooms are booked, each room will have a tax breakdown
On CRS
When making a booking via CRS, taxes indicated
Booking details
Advanced Booking search: Click total taxes to view tax info
Stay view: Click tax rate to view tax info
Additional info:
- Used in UAE market.
- Applies to MAX Booking engine, CRS and App bookings.
- To edit tax amount, remove existing tax on tax and setup.