City Tax

City Tax Function

The City Tax function calculates the tax to charge guests based on different sets of rules for each city’s requirement in Germany. For a reservation to qualify for the city tax posting, the Description column value (Reservation screen > More Fields tab > Additional Reservation Fields screen > Purpose of Stay field LOV > List Of Purpose Of Stay Values screen) must start with an asterisk (*).

The city tax is posted to each reservation based on gross or net room revenue amounts, purpose of stay, percentage, and flat amount depending on the city’s regulations. The city tax package can be set up as inclusive in rate, add rate separate line, and add rate combined line attributes. A package arrangement code can be added to the city tax package, and the package can be attached to a rate code that can be used for reservations. This function can be added in the Formula column of the City tax Package header and customized by using several parameters based on each city’s requirement. If tax_inclusive is set to Y, the tax amount is deducted from the base.

These are the parameters:

Purpose of stay.
Predefined amount ranges.
Net rate amount (rate amount to consider for calculation after taxes are deducted).
Gross rate amount (rate amount to consider for calculation before taxes are deducted).
Percentage of the applicable rate amount.
Number of children if the child buckets are configured.
Based on different package attributes such as Included in Rate, Add Rate Combined Line, or Add Rate Separate Line.
City Tax qualified packages (any package that is configured with a lodging transaction code).
The special calc rule is used for a special calculation where the city tax is calculated by the number of people in the room, and posted based on by the number of adults in the room.

City Tax Ranges

Tax ranges can be defined at the property level by selecting Setup > Configuration > Rate Management > Packages > City Tax Ranges. The configured ranges are validated when the City Tax function parameter in_amount_ranges_yn is set to Y.

The applicable tax is posted depending on the amount range configuration, for example:

0.00-10.0 = 0.00
10.01-25.00 = 0.50
25.01-50.00 = 1.00
50.01-100.00 = 2.00
100.01-150.00 = 3.00
Each additional 50.00 increases by 1.00

The City Tax Ranges screen enables you to configure these settings:

Amount From. The beginning value of the amount range.

To. The end value of the amount range.

Tax Amount. The applicable tax amount that is required by authorities.

Interval Amount. To define the intervening amount (e.g., for every 50.00 EUR tax, increase by 1 EUR).