How to Calculate Inclusive Tax

Modified on: Thu, 19 Sep, 2019 at 8:37 AM

Applies to:          Rover PMS             Rover Overlay

How to Calculate Inclusive Tax


Inclusive tax is calculated assuming the net amount is 100%, not the gross amount. In a more simplistic example, if the rate is $100, and tax is 20%, you will have to divide 100 by (120 x 20) to get to the correct tax amount, meaning tax is 16.67% and not 20%. See the example below for functionality.


Room rate: $124


Base amount: $104.98 (calculated by considering the following 4 inclusive taxes added in the charge code 160 - Room Charge - Tax Inclusive)


4 inclusive taxes:

  • Tax 1 Charge Code: 820 (amount $2), inclusive tax = $2
  • Tax 2 Charge Code: 810 (5.875%), inclusive tax = 5.875% of $104.98 = $6.17
  • Tax 3 Charge Code: 800 (8.875%), inclusive tax = 8.875% of $104.98 = $9.32
  • Tax 4 Charge Code: 830 ($1.5), inclusive tax = $1.5


Based on the above, a total of $18.99 will be displayed as FEES in the deposit balance.

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