Taxes / VAT: Improvements and configuration

What do these tax improvements consist of?

Until now, the tax configuration was developed under the premise that the price charged on the engine is with taxes included. In this way, at check-out you are informed of the amount of the reservation that corresponds to the tax and what the base would be without taxes. During the reservation process, prices are shown with or without tax depending on the country of the engine query.

From now on, with this improvement development, it is intended to take into account a series of considerations that will allow the tax configuration to be adapted according to a series of requirements:

a. If prices are charged without taxes included in the engine (Net rate – taxes excluded).

b. In the case of taxes excluded (Miami and LATAM) = depending on the tax configuration, the guest's query IP will be ignored. In addition, during the reservation the prices will be shown without taxes added, but it will be indicated that they are not included and the amount of each one.

c. At checkout, the breakdown of taxes and fees to be applied is shown and, depending on the established configuration, the total amount to be paid is shown with taxes included or without taxes included.

Where can we configure taxes?

There are two new sections related to the configuration of taxes:

In Settings > Behavior > Other parameters = we will find the “Loaded Rate Type” option with a dropdown and two options:

a. Gross rate – taxes included = default option.

b. Net rate – taxes excluded

IMPORTANT: depending on the configuration loaded in that section, some taxes or others will be seen on the front. 

That is to say:

> If we have configured the “Gross rate – taxes included” ONLY the type of tax included will be applied on the front. That is, if we have either the informative tax or the tax included in active checkout, they will not be applied in any case.

> If we have configured the “Net rate – taxes excluded” ONLY the excluded taxes will be applied on the front (either separately or if we have both types activated, both) even if we have the included tax activated.

In addition to the configuration in the Behavior section, the following must be configured:

In Parameterization > Taxes = there we create a new tax or edit an existing tax and we see that a new section appears called “Tax Preferences”. A dropdown opens with three different options:

i) Taxes included in the rate - shown broken down at check-out = this option would be the one that has been working so far.

a. In this case the rate charged in BO must be: "Gross Rate - taxes included".

b. Yes, the IP from which it is consulted is considered (as until now).

ii) Taxes not included in the rate - shown for informational purposes only.

a. In this case the rate charged in BO is "Net Rate - taxes excluded".

b. It is only shown as informational, so it is not added.

c. The IP from which it is consulted is the same.

iii) Taxes not included in the rate - they are added at check-out to the total reservation.

a. In this case the rate charged in BO is "Net Rate - taxes excluded".

b. It will be added at the checkout step, not before.

c. The IP from which it is consulted is the same.

Considerations to take into account:

Only excluded taxes can coexist (that is, the informative tax with the tax included at checkout), never with taxes included.

Difference between the calculation of Taxes included and Taxes excluded:

• Adding a tax (tax excluded): start from a base price and add the tax to obtain the total price.
• Subtraction of a tax (tax included): You start from a total price (which already includes taxes) and subtract the tax to obtain the base rate.