How to set City Tax
Modified on: 2025-09-29 10:43
As part of our design update, the screenshots are currently being revised.
TABLE OF CONTENTS
- Overview
- Step 1. Set Up Rate Plan as ABT
- Step 2. Exclude the VAT Tax
- Step 3. Click Add Tax or Fee
- Step 4. Fill in Basic Info
- Step 5. Apply Tax or Fee based on Price Range
- Step 6. Enter the Minimum Price* and Maximum Price
- Step 7. Select the Tax Calculation Unit: Per Room or Per Person
- Step 8. Click Show Tax or Fee Calculation Base
- Step 9. Select Calculate Tax or Fee Depends on (Up to 5)
- Step 10. Set the Rounding Method
- Step 11. Select the Assignment
- Step 12. Click Save
Overview
To address the complex tiered city-tax requirements common in many European markets—such as German municipalities where the tax is calculated across multiple tiers—the Property Connector now supports step-based city-tax configuration.
This flexibility allows revenue managers to accurately model multi-level city taxes and ensures that pricing sent to distribution channels always reflects the correct stepped tax structure.
Step 1. Set Up Rate Plan as ABT
If the Hotel provides the rate AAT from PMS, we need to set up the rate plan as ABT.
Select Tax Exclusive in the Rate Plan Page.
Step 2. Exclude the VAT Tax
Select the Inclusive PMS Rate Type and set the Offset Rule to exclude the VAT from the rate plan.
Step 3. Click Add Tax or Fee
Navigate to the Tax & Fee page by selecting Tax & Fee from the Property drop-down menu in the left navigation bar. Then, click on the Add Tax or Fee button.
Step 4. Fill in Basic Info
a. Enter Tax or Fee Name*
b. Set Charge Date Range*
c. Select Charge Type*
Click on the drop-down menu of "Charge Type" and select the appropriate charge type: per room per night, per person per night, per room per stay, or per person per stay.
d. Set Amount*
i. Click on the drop-down menu next to Amount to select the type of amount: Fixed or Percentage.
ii. Then enter the specific amount value or percentage in the adjacent input box.
Step 5. Apply Tax or Fee based on Price Range
Step 6. Enter the Minimum Price* and Maximum Price
Step 7. Select the Tax Calculation Unit: Per Room or Per Person
Step 8. Click Show Tax or Fee Calculation Base
Step 9. Select Calculate Tax or Fee Depends on (Up to 5)
Step 10. Set the Rounding Method
Click on the Rounding by and select the desired rounding method from the drop-down menu:
- Rounding Up
- Rounding Down
- Rounding to the Nearest
- Rounding to the Nearest Hundredth
- Rounding Up to the Hundredth
- Rounding Down to the Hundredth
Step 11. Select the Assignment
Select the assignment from the list: Property, Room Type, Rate Plan, or Later.
Step 12. Click Save
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