Tax is a key part of invoices. Some listing sites, for example Airbnb, don't give you the ability to break out taxes separately on their invoices. As a result, you are forced to net up your charges to include tax.

When you set up your account on ClearlyBooked, you are given the option to have ClearlyBooked "back into the taxes" on the invoices from these listing sites.

If you provide us with your tax rate and choose this option, we'll take care of the following for you:
Assume tax has been included in each of the taxable charges
Add a new charge for the total tax due for the invoice
Create a new charge to reduce each taxable charge proportionally

The net of your invoice will still total the same amount, but we will break out the Tax amount separately and reduce your rent and cleaning amounts accordingly.

For example, you are required to charge 10% on taxable revenue. This is what the invoice should look like:
Rent = $900
Cleaning = $100
Tax = 10% of (Rent + Cleaning)
= 10% of ($900 + $100) = $100
Total = $1,100

But since Airbnb does not give you a way to do that, you're forced to net up the charges:
Rent = $990
Cleaning = $110
Total = $1,100

So the above invoice becomes:
Rent = $990 - $90
Cleaning = $110 - $10
Tax = $100
Total = $1,100

If your guest changes their reservation, for example shortening their stay by one night, we'll make the price adjustments accordingly.

For example, assume the guest in the example above shortens their stay by a night. As a result, the rent drops $300 and the tax drops accordingly. (The Cleaning fee remains unchanged.)
Rent = $990 - $90 - $300
Cleaning = $110 - $10
Tax = 10% of (Rent + Cleaning )
= 10% of ($600 + 100) = $70
Total = $770

How is Taxable Revenue Calculated?
Some charges on an invoice might not be taxable. Taxable revenue is the sum of all the charges on an invoice that are taxable. Any charges that are added to an invoice are assumed to be taxable unless indicated otherwise. For more information on setting up "Taxability Rules", click Here.

Create Taxability Rules
These rules are one of the ways charges get excluded from taxable revenue. By creating Taxability
Rules
, you can exclude charges in a particular Category from being considered taxable. The rule can be defined for all rentals or a particular rental.
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