Setting Up Taxes (USA)

To manage taxes correctly in RoomRaccoon, you need to:

• Create your tax rules

• Assign those taxes to the correct ledgers

This ensures your financial reports reflect your tax obligations accurately.

Step 1: Set up your tax rules

1. Go to Account Settings

2. Scroll to Tax Rules

3. Create or edit a tax rule - For each tax (e.g. state tax, local tax, hotel tax):

   • Enter the tax name and percentage

   • Select the categories the tax applies to, such as:

     • Accommodation

     • Add-ons

4. Choose how the tax is calculated -Select whether the tax is calculated on:

   • Net amount, or

   • Gross amount

5. Manage OTA tax exemptions - You can control how taxes apply to specific channels:

   • Select which OTAs should be excluded from the tax rule

   • This allows flexibility depending on how each channel handles taxes

Step 2: Link taxes to ledgers

After creating your taxes, you must assign them to the correct ledgers.

1. Go to Finance

2. Open the Ledgers tab

3. Assign taxes to a ledger:

   1. Select the relevant ledger (e.g. accommodation, food and beverage)

   2. Click Applicable Taxes

   3. Choose the taxes that apply

   4. Click Save

Important: if an add-on is linked to a ledger:

• Do not apply tax rules directly to the add-on

• Always apply taxes through the ledger

This keeps your financial reporting consistent and accurate.

Result

Once your taxes and ledgers are configured:

• Taxes are applied correctly across your reservations

• Financial reports reflect accurate tax amounts

• You maintain consistency across all revenue streams