The Government of Canada has announced a proposed measure to provide GST/HST relief on certain items from December 14, 2024, to February 15, 2025. Click Here for more information from the Government of Canada website. To temporarily manage the taxes on items that qualify for this tax break, we recommend you manually adjust the taxes using a tax adjustment transaction code.
It is your responsibility to understand what charges qualify for this GST/HST relief, we recommend you review What to do as a business that charges the GST/HST.
How to Create a Tax Adjustment Transaction Code
The steps below describe how to create a transaction code, attach a GL Account, and activate the code for RoomKeyPMS users.
Every transaction code requires an attached GL (General Ledger) Account. You can use an existing GL Account in your database, or Click Here to create a new GL Account first before you proceed with the steps below.
In the Transaction Codes module (System Configuration > Transaction Codes)
- In the Codes tab, use the drop-down menu to select Other Charge
- Select the Add button
- In the General tab, enter the following information:
- Code: GST-ADJ (or HST-ADJ, of applicable)
- Description: GST Adjustment (or HST Adjustment)
- Select the Ok button
- Select the Accounts tab and click the Insert button
- Use the drop-down menu to select the GL Account (i.e. Tax Revenue - GST)
- Select the Ok button
- Select the General tab and click the Modify button
- Enable the Active checkbox
- Select the Ok button
How to Use an Adjustment Code to Remove Tax
These steps describe how to use a tax adjustment transaction code to manually adjust taxes from a qualifying charge. In the example below, the RCH Room Charge does not qualify, but the MISCGST Restaurant Charge with GST does qualify.
When you identify a qualifying charge on a guest folio,
- Select the Post Charges button
- In the Charges window, use the Code field to select your tax adjustment code (i.e. GST-ADJ)
- Use the Amount field to enter the amount of tax as a negative (i.e. -2.36)
- Click the OK/Exit button
The tax adjustment will now appear on the guest folio as a separate line item.
FAQ
Click below for more information:
Room Charges, Payments and Special transaction codes do not qualify for the GST/HST relief.
- In the System Configuration menu, select Transaction Codes
- In the Codes tab, use the drop-down menu to select Other Charge
- Locate a qualifying charge (i.e. WINE Bottle of Wine)
- Select the Taxes tab to view the list of Assigned taxes
- Locate the guest reservation in the Checked Out screen and select the Folio tab
- Identify the qualifying charge(s)
- Select the Post Charges button
- In the Charges window, use the Code field to select your tax adjustment code (i.e. GST-ADJ)
- Use the Amount field to enter the amount of tax as a negative (i.e. -7.30)
- Click the OK/Exit button
The tax adjustment will now appear on the guest folio as a separate line item.
Next, you need to issue a refund back to the guest (i.e. refund the guest credit card)
- Click the Post Payment button
- In the Payments window, review the payment amount (it should appear negative) and click the OK/Exit button
If you have a Credit Card Interface connected to RoomKeyPMS, you will see a payment processing window appear. You can review the Action (Refund) and the Amount (Credit), then click the Post button. Wait for the Approval message to confirm that the refund is successful.
The refund will now appear on the guest folio as a separate line item, below the tax adjustment.
Packages are used to bundle one or more services with guestroom accommodation. The benefit is that the guest will see one "package charge" per night on their folio, but the components (transaction codes) of the package are recorded separately for billing/accounting purposes. Some packages may contain transaction codes that qualify for GST/HST relief, we recommend you manually adjust the taxes using a tax adjustment code.
STEP #1 View the Package Components
Locate a reservation with a package rate
- Select the Guest Folio button
- In the popup window, enable the Display Package Components checkbox
- Select the Print button
In the example below, the Room Charge does not qualify, but the Breakfast Daily Package Charge does qualify
STEP #2 Use an Adjustment Code to Remove the Qualifying Tax
- Select the Post Charges button
- In the Charges window, use the Code field to select your tax adjustment code (i.e. GST-ADJ)
- Use the Amount field to enter the amount of tax as a negative (i.e. -1.25)
- Click the OK/Exit button
The tax adjustment will now appear on the guest folio as a separate line item.
