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  • 1.  Charging Tax on Municipal Accommodation Tax (MAT) Hotel Rooms

    Posted 25 days ago

    Hello, what is the best way to charge tax on MAT that is charged on hotel rooms? So the hotel room cost is subject to MAT and HST, and the MAT is also subject to HST. I have MAT set up as a tax, but I cannot charge tax on another tax. And I cannot add MAT as a service charge because I cannot setup hotel rooms as a condition for service charge. Does anyone have any suggestions on how to best set this up?


    #MeetingsManagement
    #ManagingRoomBlocks

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    Jennifer Moir
    Manager, Events
    Ontario Public School Boards AssociationCanada
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  • 2.  RE: Charging Tax on Municipal Accommodation Tax (MAT) Hotel Rooms

    Posted 13 days ago
    At this time, Passkey does not support charging tax on another tax (for example, applying HST on top of MAT configured as a tax). Because of this limitation, MAT cannot be both treated as a true tax and then further taxed within the system.For a detailed overview of how taxes, fees, and tax disclaimers work in Passkey, you can refer to this article:Managing Hotel Taxes, Fees, and Tax Disclaimers in Passkey.As a workaround, many users handle the "tax on tax" requirement through disclosures and communication rather than system-calculated values. Some options you might consider:
    • Custom consent language on the booking page to clearly advise guests that an additional tax (e.g., HST applied to MAT) will be charged.
    • Including a note in the acknowledgement/confirmation so the guest sees that the additional tax will be applied by the hotel, even if it is not fully itemized/calculated within Passkey.
    • Adding details in the tax disclaimer section to explain how MAT and any applicable taxes on MAT are handled, so the total tax structure is transparent to guests.
    These approaches ensure transparency while working within the current system behavior. For further solution review, it's recommended to contact your Customer Success Advisor or Account Manager.


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    Mallory Hatch
    Cvent Internal - Sales DemoUnited States
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    Original Message


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