how to deal with tourism tax re DAC7 report
- create a booking extra for the tourism tax
- create an owner used to collect the tourism tax
- allocate the booking extra to the owner
- exclude this owner from the DAC7 report as this "owner" is not a real person and the tax is being paid to the authorities directly
If you need to collect a tourism tax, a property tax or something similar, you can set this up for each property individually.
As this tax would not be paid to the owner, but e.g. a financial authority, it needs to be accounted for within SuperControl, but excluded from the Dac7 report.
One way of doing this is to create a virtual owner and allocated these payments to it. This virtual owner is then excluded from the DAC7 report.
The first step is to set up the tourism tax for the property.
- Go to Properties > Edit > Go > top section Property details
- Add your tax reference number.
- Click Save at the top or bottom of the page.
Please note:
Should you not yet have selected a Property type, you will not be able to save any changes made to the property settings, before this has been done.
As this owner is used to keep a record of the collected tax, you need to add the bare minimum of information, when creating it.
- Go to Agency > Add owner.
- As Firstname and Last Lastname are mandatory information, add something like Tourism Tax for last name.
It might seem strange to do it this was, but as the owners are sorted by last name you would find this owner as Tourist Tax in the list of owners.
No other information is required in this section. - In the Seller information section select Not required for DAC7 from the drop-down menu.
Leave the Booking summary details, Owners' login details and Default settings sections as is. This is not required.
In the Payment details section, the sub-section Commission settings and Commission on balance need to be amended. All others are not reuqired.
- Select Percentage, set all percentages to 0.
The settings should look like in the below screenshot.
- For the balance to be paid to the owner select Pay owner after arrival date in the Commission on balance sub-section.
When 0 is selected, the payment date will be actual arrival date.
As the owner is not being included in the report to be uploaded to HMRC, the section Bank details can also be left empty.
Add any notes as required, e.g. Only used for the tourism tax collection.
- Click Save.
All tourism tax should be collected as a default booking extra. This way it will be automatically added to all booking received by your website and the main channels, e.g. Airbnb, Booking.com and Vrbo.
The tourism tax collected via the booking extra will be allocation directly to the Tourism Tax owner. Within a booking, the tourism tax will be process separately from the monies allocation to the owner of the property.
- Go to Properties > Booking extra > Add a name in the field for a new booking extra at the top of the page.
- Click Next.
Please note:
Make sure that the option Owner payment date is set to Default from the drop-down menu.
Quantity available across all properties should be set to Unlimited.
For Show on channel only the option Show on all booking should be selected.
- Click Save.
The page will refresh and you will see the list of all created booking extras.
The extra, once created, will show a (0) after it initially.
This means it hasn't been allocated to any property yet.
- Click onto the name of the booking extra.
- On the next page make sure that the option All properties is selected.
- Set the amount due and the unit it is collected for, e.g. per person per night.
- For Owner rate / Commission % set -1 and %.
This means that the whole amount is being allocated to the owner.
- The Supplier needs to show Toursim Tax.
Max for this property means how many times this booking extra can be applied per booking. Normally the tourist tax would only be applied once per booking, so 1 is fine.
The column Default needs to show 1. Which means that it has been set up as a default booking extra which will be automatically applied to your bookings.
Tip:
If you want to have these same settings for all your properties you only need to click onto the two squares next to the column heading. This will copy the value of the top property to all properties.
Please note:
All changes are saved automatically.
There is no extra Save button.
Example:
- 3 adults & 1 child
- duration 7 nights
- Tourist tax is £5.5 per person per night
- £5.5 * 4 = £22 (tax for four people per day)
- £22 * 7 =£154 (tax for the whole stay)
This amount can be found in the financial section in the top right of the booking.
In the Owner payment tab there is a section where this money has been allocated to the owner Tourism Tax.
The amount due for the Tourism tax is deducted from the amount, which will be divided between the actual owner of the property and the agency commission.
