Municipal accomodations tax

SUGGESTED

has anyone had an experience/ costing with adding a municipal accommodation tax to their system? and does it take a lot of time and effort to maintain?>

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    SUGGESTED

    Hi  ,

    Thank you for reaching out, apologies for the delay in responding. To address your question, adding a municipal accommodation tax can be managed within Sage 50 by setting up a new tax rate. This will not require excessive time and effort to maintain once set up. Here's how you can add this tax to your Sage 50 system:

    1. Set Up a New Tax Rate:

      • Navigate to Setup, then Settings, Company, Sales Taxes, and finally Taxes.
      • Enter a new line in the Tax column, such as "Municipal Accom Tax".
      • Leave the tax ID blank if it's not applicable.
      • Set "Exempt from this tax" to No.
      • Set "Is this tax taxable" to Yes, if the municipal accommodation tax itself is subject to other taxes (though this is usually not the case).
    2. Link to Appropriate Accounts:

      • Link the tax to an account to track tax paid on purchases and another to track tax charged on sales. If you don't have appropriate accounts set up, see "How do I create a new account in my Chart of Accounts?" to create the necessary accounts.
    3. Set Up Tax Codes:

      • In Tax Codes, enter a new Code for the municipal accommodation tax.
      • Access the tax code details screen and select the tax you've just created.
      • Enter the percentage rate of the accommodation tax.
      • Set "Included in price" to No, and "Is refundable" to Yes.
      • Add this tax code to your invoices when applicable.
    4. Apply the Tax to Invoices:

      • When creating an invoice that requires the municipal accommodation tax, select the new tax code you've created.
      • The system should automatically calculate the percentage based on the invoice total.

    It’s important to consult an accountant to ensure that the entries made by this workaround are accurate and comply with the tax laws in your area.

    Also, please note that the process described above is similar to setting up a fuel surcharge or credit card merchant fees as outlined in the articles provided. You can use the same steps to create a taxable tax in the sales tax settings that will calculate a percentage of the invoice.

    If you require any further assistance or have additional questions, the Sage support team is available to guide you through the process.

    Warm Regards,
    Erzsi