There are two ways to automatically apply city tax to incoming reservations.

  • If the city tax is simple (for example, if there is one tax rate for all guests), you can use product rules.
  • If the city tax is more complicated (for example, if there are different tax rates for adults and children), you'll need to use fixed city tax.

We recommend you use product rules, when possible—they're much more flexible, so you can easily tweak them if there are any changes to your local tax laws.

Note: If you need to use the fixed city tax feature but your city isn't listed when you try to set it up, contact our support team so they can look into it.

Using product rules

Set up city tax as a product and automatically apply it to incoming reservations with product rules.

Note: The way you set up city tax depends on whether you want city tax to be included or excluded from the reservation price—if you're not sure, check with your local tax authority.

Exclude city tax from the cost of reservations

Step 1: Create a city tax product

  1. Go to Main menu > Settings > Services.
  2. Select your stay service.
  3. Click Products.
  4. Click the + button, then click + Product.
  5. Under Name, enter "City tax."
  6. Enter the price and tax rate for your city tax. If the price of city tax is an absolute value (for example, €2.50), enter it under Price. If the price of city tax is relative to the cost of the stay (for example, 2%), enter the percentage adjustment under Relative price (to night net). When you enter a price, you also need to choose a currency.
  7. Under Options, make sure Exclude price from offer is deselected.
  8. Click Create.

Step 2: Create the product rule

  1. Go to Main menu > Settings > Services.
  2. Click on your stay service.
  3. From the Settings menu, click Product rules.
  4. Click the + button.
  5. In the Priority field, enter a number that's lower than all of your other product rules (to make sure it's applied to every incoming reservation). You can enter a negative value to make sure it's the highest priority product rule.
  6. Under Action, select Add.
  7. Under Product, choose the city tax product.
  8. Click Create.

Include city tax in the cost of reservations

Step 1: Create a city tax product

  1. Go to Main menu > Settings > Services.
  2. Select your stay service.
  3. Click Products.
  4. Click the + button, then click + Product.
  5. Under Name, enter "City tax."
  6. Enter the price and tax rate for your city tax. If the price of city tax is an absolute value (for example, €2.50), enter it under Price. If the price of city tax is relative to the cost of the stay (for example, 2%), enter the percentage adjustment under Relative price (to night net). When you enter a price, you also need to choose a currency.
  7. Under Options, select Exclude price from offer.
  8. Click Create.

Step 2: Create an accommodation adjustment product

  1. Go to Main menu > Settings > Services.
  2. Select your stay service.
  3. Click Products.
  4. Click the + button, then click + Product.
  5. Under Name, enter "Accommodation adjustment."
  6. Enter the price of the product—the price should be the same as your city tax, but with a negative value (the accommodation adjustment cancels out the cost of the city tax).
    If the price of city tax is an absolute value (for example, -€2.50) enter it under Price. If city tax is relative to the cost of the stay (for example, -2%), add the percentage adjustment under Relative price (to night net). When you enter a price, you also need to choose a currency.
  7. Enter the Tax rate and Accounting category of the adjustment product. These should match the Tax rate and Accounting category set up in your stay service.
  8. Under Options, select Exclude price from offer and Bill as package.
  9. Click Create.

Step 3: Create the product rules

  1. Go to Main menu > Settings > Services.
  2. Click on your stay service.
  3. From the Settings menu, click Product rules.
  4. Click the + button.
  5. In the Priority field, enter a number that's lower than all of your other product rules (to make sure it's applied to every incoming reservation). You can enter a negative value to make sure it's the highest priority product rule.
  6. Under Action, select Add.
  7. Under Product, choose the city tax product.
  8. Click Create.
  9. Repeat the above steps, but select Accommodation adjustment under Product.

Using the fixed city tax feature

If you're already using a product rule to add city tax to reservations, you need to update the product rule before turning on an automatic city tax.

  1. Go to Main menu > Settings > Services.
  2. Select your stay service.
  3. In your General settings, find the City tax field and select your city. If you can't find your city, it may not be supported yet.
  4. Under City tax mode, choose if you want the city tax to be included or excluded from the reservation price. If the city tax is excluded, it will be charged on top of the reservation price. For example: if your city tax is €2 and a guest makes a reservation for one night at a rate of €10 per night, the guest will pay €12.
  5. Click Save.

Note: Fixed city tax is less flexible than product rules, so if your city tax is due to change it's important to let us know so we can start updating it in advance.

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