Apply Taxes to Online Deposits
Posted by Jeff Tweddale on 05 Feb 2013 09:41 AM

Apply Taxes to Online Deposits

There are some times when customers desire to tax the deposit made for an online booking. Thus, if a deposit was to be '1st night' with a rate of $90, and taxes were an extra 5%, then the deposit would be $94.50 if this setting were turned on.

The setting to invoke this feature is as follows:

• For Management Tool/Pro users and MyPMS customers, it is in the Settings | Tax Configuration area where there is a check box called "Apply Taxes to Deposits".

• In the Desktop system, it is found in Parameters | Policies area where you can check 'calculate deposit inc tax'.

There are many folks who think this is a bad idea, as it is illegal in most cases to charge transient occupancy tax on a cancellation fee. Thus, if a guest were to cancel their online booking, and you had to refund the tax portion (strictly the appropriate thing to do) the amount of money paid in refund fees would likely be greater than the benefit of the tax collected. But this is a tax and deposit/refund decision each customer makes on their own.

There is an article describing deposit options here:

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