Tax rate setup, management and use

Tax rate setup, management and use

The multi tax section permits operations to create various tax rates. For example, Cargo, Passenger FET, VAT, GST, Special State Tax, etc. The rates can be applied to quote flight charges, quote line items and invoice line items, or across the entire quote at once. 

Setup tax rates

  1. Finance > Settings (tab) > Taxes (tab) > Taxes (side-tab) and Configurations (side-tab)

  selectedImg   

   2. Click Create New

   3. Input the name and rate and click Create

  1. Example Tax Rates to add to the table: 
    1. FET
    2. FET Passenger Segment Fee
    3. AK and HI Head Tax
    4. International Head Tax

Updating Tax Rates

  1. Click Finance

  2. Access Tax Rates in the Settings tab

  3. Click the blue edit button next to the rate that you are editing.

Configurations

The Configuration tab allows users to automate the application of taxes, including conditionally based on the itinerary. 

  1. Configurations named 'Default for Flight Legs' for flight legs and 'Default for Line Items' for line items will be present, applying 'Always', and include the Default tax.
  2. Custom Tax Configurations may be created that apply to flight legs or line items. 
    1. If for flight legs, then the Passenger unit taxes may be used and applying based on itinerary conditions is available.
    2. If for line items, only Percentage unit taxes may be used and only for always applying automatically. 
  3. Flight leg conditional application must have a 'From' selection and a 'To' selection. Possible selections include countries, US states, Canadian Provinces, airports, and other unique designations such as 'Anywhere' the '225 Mile Zone', Rural' and 'Non-Rural Airports', 'All International', and 'Continental US'. These are the same selections as the Master Line Item, Itinerary conditions. 
    1. The itinerary may be fixed as a From>To, or by selecting Bidirectional = Yes will operate in either direction: From<>To.
Examples: 








Notes
Configurations STACK!
 If a flight itinerary is applicable to multiple tax configurations, then the taxes from all applicable configurations will be applied. 

Taxes on Quotes

  1. When a Quote is created or edited, if the itinerary matches a tax configuration condition (or an 'always' configuration exists), then those taxes will be applied to the flight legs and/or the line items. 
  2. If the Contract for the Quote has Taxes = Custom, then those taxes will be applied as selected in addition to all the matching configuration taxes.  
  3. Segment Fees or Passenger unit taxes will also be visible in the Tax field on the flight legs. 
  4. Once a quote has been created and taxes may or may not have been applied, all remain editable. However, if there are changes to the itinerary that trigger the tax configuration to rerun any manual adjustments/edits may be lost. 

Apply Tax Rate Across Quote (flight charges and line items):
To change the tax rate across the entire quote click the Update Tax Rates button and select the new tax rate. Then, the option to apply it to the flight charges and/or the additional charges (line items) is available.

Notes
Taxes will only apply to Retail quotes. If the quote is Wholesale, no taxes will be applied.

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