Configuring Taxes

In Futurestay, you have the ability to add taxes to your direct bookings to comply with local tax regulations. Common taxes for short-term rentals include occupancy tax and goods and services tax (GST). It's important to note that these taxes apply only to direct reservations made through your Futurestay site. For Airbnb reservations, Airbnb handles most tax collection and remittance on your behalf. This guide will help you understand how to set up and manage taxes for your direct bookings.

Understanding and Setting Up Taxes

1. Determine Your Tax Obligations

   • Occupancy Tax: Often required by local governments, this tax is usually a percentage of the rental price.

   • Goods and Services Tax (GST): Similar to VAT, this tax applies to the supply of goods and services in some countries.

   • State and Local Taxes: Depending on your property's location, you may need to collect additional state and municipal taxes.

2. Calculate Total Tax Amount

   • Combined Taxes: Determine all applicable taxes for your property, including state, municipal, and any other local taxes. Add these together to find the total tax rate.

   • Example Label: If your property is subject to both state and municipal taxes, label it clearly, such as "Utah State + Park City Municipal Tax."

3. Setting Up Taxes in Futurestay

   • Tax Amount: Enter the total tax rate as a percentage of the booking amount.

   • Tax Label: Use a descriptive label to inform guests of the specific taxes they are being charged.

   • Direct Bookings Only: These taxes will only apply to reservations made through your Futurestay site.

4. Tax Collection and Remittance

   • Self-Managed: You are responsible for collecting and remitting taxes to the appropriate tax authorities. Futurestay provides the tools to charge taxes but does not handle the remittance for you.

   • Tax Reporting: Keep accurate records of the taxes collected from your guests for reporting to the tax authorities.

Additional Resources

To help you determine the specific taxes you need to collect and remit, consider the following resources:

• Local Government Websites: Check the official website of your state, city, or municipality for information on short-term rental taxes.

• Tax Professionals: Consult with a tax professional to ensure compliance with all local tax laws.

• Online Tools and Guides: Websites like Airbnb provide resources and guides for understanding tax obligations for short-term rentals.

Example from Airbnb

Here's an example of how Airbnb handles taxes, which can provide additional context for your setup in Futurestay:

• Adding Taxes to Listings: Airbnb allows hosts to set the type of tax, the way to collect it (percentage per booking, fee per guest, etc.), and what to collect it on (nightly price, fees, etc.).

• Automatic Tax Collection: In some jurisdictions, Airbnb collects and remits taxes on behalf of the host. Hosts can either opt out and add their own taxes or add taxes in addition to what Airbnb collects.

Key Points to Remember

• Manual Collection: Futurestay requires you to manually collect and remit taxes for direct bookings.

• Clear Communication: Use descriptive labels for taxes to ensure transparency with your guests.

• Record Keeping: Maintain accurate records of all taxes collected to comply with local tax reporting requirements.

By properly setting up and managing taxes in Futurestay, you can ensure compliance with local regulations and provide a transparent booking experience for your guests.