How does occupancy tax collection and remittance by hotels work?

Overview

This FAQ provides general information for our direct hotel partners regarding occupancy taxes and is not intended to provide tax advice. Hotels remain responsible for complying with their tax obligations, including informing HotelTonight of applicable tax rates (for any taxes not collected and remitted by us), ensuring such tax rates are accurate and up-to-date, and timely remitting taxes they owe to the proper taxing authorities. If you have specific questions about your tax obligations under applicable laws and regulations, we recommend conducting independent research and/or consulting a tax professional.

Hotels are responsible for collecting and remitting any occupancy taxes on their net room rate that are not automatically collected and remitted by HotelTonight on the hotel’s behalf. This means: 

• If your hotel is located in an area where HotelTonight collects taxes only on our service fee, you will be responsible for collecting and remitting all applicable taxes on your net room rate. 
• If your hotel is located in an area where we collect and remit certain taxes on your behalf, you may still need to collect any additional taxes (such as a local tax or value added tax) that are not collected by HotelTonight.

What taxes should be collected by the hotel?

• Taxes on the net room rate (i.e., nightly price minus HotelTonight’s service fee), except for any taxes that HotelTonight collects and remits on behalf of hotels in your area.

What taxes should NOT be collected by the hotel?

• Taxes on HotelTonight’s service fee
• Any taxes on the net room rate that are already collected and remitted by HotelTonight

How do I add taxes to be collected and remitted by the hotel?

1. Go to your HotelTonight Extranet Profile and click on Settings
2. Click on Tax/Fees
3. Under Tax Remitted by Hotel, specify the amount of tax to be collected 
• You can set the type of tax and the way you want to collect it (percentage per booking, fixed amount per guest, fixed amount per transaction). If entered as a percentage, this tax will be collected on your net room rate (i.e., net of HotelTonight’s service fee). HotelTonight is not responsible for any tax collection errors due to typos. You are responsible for ensuring that the taxes entered are accurate, complete, and up-to-date. 
• Please do not add any taxes that are already being automatically collected by HotelTonight on your behalf. If we collect and remit any taxes on behalf of hotels in your jurisdiction, you’ll see a section called Tax Remitted by HotelTonight.
4. We’ll collect these taxes from guests (in addition to any taxes we automatically collect and remit on your behalf), and will include them as part of your virtual credit card (VCC) payout for you to remit to the appropriate tax authorities

I also list my hotel on Airbnb through Airbnb Travel, LLC. For any taxes not collected by Airbnb Travel, LLC. how do I add taxes to be collected and remitted on my Airbnb listing? 

If you are a hotel that's also listed o Airbnb using HTX, you can manage the occupancy taxes that you're responsible for in the HotelTonight Extranet, as noted in the above FAQ. Whatever taxes you have set in the Tax Remitted by Hotel section of the HotelTonight Extranet will be sent to the Airbnb platform and charged to guests accordingly.