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Tax settings for Direct booking: FAQs
Tax settings for Direct booking: FAQs
Updated over a month ago

Where do these tax settings apply?

Tax settings in Payments > Taxes apply to Direct booking only, not your connected channels.

Will updates to tax settings affect existing bookings?

When you create, edit, or delete a tax, the change only applies to new bookings. Existing bookings will keep their original tax settings.

How do I handle tax rate changes and seasonal taxes?

Update tax settings manually when your local tax rates change. You can only set current tax settings, not future ones. For temporary or seasonal changes, update taxes on the effective date.

💡Bookings use the tax rate from the day the guest books, not the day they stay. For example, if a guest books today for next month, they'll get today's tax rate, even if tax rates change before their stay.

How do I set up different tax rates for rooms and extras?

If a different tax rate applies for rooms and extras (or for different extras), set up multiple taxes. When creating each tax, set what the tax applies to: All rooms and extras, All rooms, or Extras only.

How do I set up extras with different tax rates?

Add separate taxes for different extras.

  1. Create a new tax and select Extras only in Tax applied to.

  2. Click Save.

  3. Click the pencil icon to edit the tax.

  4. Select which extras this tax applies to.

  5. Click Save.

Should I use tax-exclusive rates when tax changes are coming?

We recommend using tax-inclusive rates if you expect future tax changes. If using tax-exclusive rates:

  • Only offer non-refundable rates with full payment at booking

  • Avoid partial payments

  • Be aware that refunds may be complicated if tax rates change

This is because tax changes between booking and stay dates can affect refunds and partial payments.

Where will guests see taxes on my booking engine?

Guests will see tax information on your booking engine on:

  • The page where guests are asked to confirm their reservation

  • The reservation confirmation e-mail

  • The booking confirmation page

  • The rate displayed (if tax settings are inclusive)

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