ConvertDirect Booking Engine

Tax on Tax Feature

What is Tax on Tax?

In UAE, there are 3 types of applicable taxes on room rate

  • Municipality Tax @ 10%
  • Service Charge @ 10%
  • VAT @ 5%

VAT tax also applies to Service Charge. So in this case there is tax on top of Service Charge tax (Tax on Tax)

How to setup tax calculation?

Setup > Tax/ Surcharge

  1. Municipality Tax > This is like a normal tax setup, 10% on room rate
  2. Service Charge > 10% on room rate > because it is a taxable tax enable Tax on Tax flag
  3. VAT > 5% on room rate and Service Charge > As taxable surcharge, enable taxable surcharge flag

On Booking Engine

Booking details page

Hover over ‘Tax’ button to see breakdown

  • If multiple rooms booked, each room will have tax breakdown
  • Combined tax total is displayed in Total Tax at the bottom

Booking details:

  • Feature only applies on STAAH ConvertDirect (Booking Engine)
  • For UAE market

 

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