This article will explain the changes and settings that need to be configured in Homhero and RMS to support the New Zealand Goods and Services Tax (GST) Marketplace Rules that came into effect from the 1st April 2024.
Homhero changes:
- New GST Settings (Set as Exclusive or Inclusive)
- New GST Number Merge Fields for Communication Schedules and Templates
- Rate Query Display
- Homhero pricing
RMS changes:
- Add GST and GST Credit Sundries
- New GST/TIN setting on Owner Contact
- New EOM Expense Setting
- New Owner Accounting Setting
HOMHERO
We have added new GST Settings, Merge Fields and GST Pricing changes to control how you would like your pricing to be delivered to the OTA's.
Here are the steps:
Step 1 - Update GST Settings
- Click Settings from the Homhero side menu
- Under General Settings, click the Rates & Availability tab
- GST Number: Enter the GST Number if not already populated. Airbnb requires this for setting the tax policy in pricing settings
- Rates GST: Choose whether the rates are GST Exclusive, or Inclusive:
GST Exclusive - When GST Exclusive is used, the GST is calculated on top of the base tariff and stored as a log item. GST Exclusive is recommended
GST Inclusive - When GST Inclusive is used, the GST is included in the rental amount - Click Save
Step 2 - Update Schedules and Templates
Please view our new GST merge fields if you would like to update your Communication Schedules and Templates.
IRD GST Number = You can set this number as it appears since this won't change with your reservations.
GST Inclusive in Tariff = ${{((tarriff_amount*3)/23)|number_format(2)}}
HOMHERO PRICING CHANGES
We have changed how the pricing is delivered to your OTA's based on whether you have set your rates to be GST Exclusive or Inclusive.
Airbnb/Booking.com/VRBO/HVMB
- GST Exclusive rates (recommended)
We send the following LOS prices to the OTA's as Exclusive of GST:
Rent = GST Exclusive
Packages = GST Exclusive
Pricing Settings: Setup NZ GST 15% on stay price - GST Inclusive Rates (not recommended)
We send LOS prices to the OTA's Inclusive of GST and no changes are necessary in terms of tax. Totals include GST and as long as you are opted out of OTA collection of GST, everything will operate as it normally has. - Issues - OTA's charge commission on GST inclusive amount, not GST exclusive amount.
Website/Direct bookings
- GST Exclusive Rates
GST component added as a separate fee on rent added after price built
Packages = GST Inclusive
Bookings Inbound (GST Exclusive Rates only)
-
For OTA's and Website/Direct, the GST component of rent will be allocated on the RMS side, and GST on Rent pay to agency/manager for payment to the IRD
Booking Modifications (GST Exclusive Rates only)
- RMS automatically splits out the GST component on modification.
RMS
You will need to make a few changes in RMS to be in line with these changes. Presently these changes are only supported in the BETA RMS version, and you will need to login via the BETA URL to complete this. Please contact Homhero Support and request the BETA version to be enabled within your RMS account.
Here are the steps:
Step 1 - Add GST GL Codes
- Search and open GL Acc Codes from the Menu Search
- Click the Add (+) button in the top right hand corner
Add 'GST' GL Account Code - GL Acc Code = GST
- Description = GST
- Click Save/Next
Add 'GST Credit' GL Account Code - GL Acc Code = GST
- Description = GST
- Click Save/Exit
Step 2 - Add GST Sundries
- Search and open the Sundry page from the Menu Search
- Click the Add (+) button in the top right hand corner
Add GST Sundry - Description = GST
- G/L Acc Code = Select the GST GL Code
- GST Type = GST Free
- Click Save/Next
Add GST Credit Note Sundry - Description = GST Credit
- G/L Acc Code = Select the GST Credit GL Code
- GST Type = GST Free
- Click the checkbox = Credit Note
- Click the check box = Unassigned to Charge when created
- Click Save/Exit
Step 3 - Add GST registration to Owner Contact
You must indicate if your owners are registered for GST or not. This information is set on the Owner Contact in RMS. If your owner is registered for GST, you need to enter their GST/TIN number.
GST Free: Yes = GST registered
GST Free: No = Non GST registered (Owners will get an 8.5% credit of GST per reservation)
- Search and open Client Search from the Menu Search
- Search the owners name
- Double click to open the owner contact
GST Registered Owner - GST/TIN = Add the owners GST number
- GST Free = Yes
- Click Save/Exit
Non-GST Registered Owner - GST Free = No
- Click Save/Exit
Step 4 - Add EOM Expenses
If GST Free is set to 'No' on the Owner Contact, the owners will get an 8.5% credit of GST per reservation. You must add an EOM Expense for each owner that is not registered for GST.
- Search and open EOM Expenses from the Menu Search
- Click the Add (+) button in the top right hand corner
- Select Room Type (If you are adding this to more than one property, you can bulk select multiple Room Types here)
- Select Area
- Ensure the Effective From Date is correct (this will be today's date)
- The Effective To Date will automatically set for 100 years in advance
- Select Sundry = GST Credit
- Select Type = Tariff Commission
- Select Sub Type = On Departure - (Percentage)
- Enter Amount = -8.50% (this is a negative amount)
- Tick the checkbox Apply to Reservations made after 1st April 2024
- Click Save/Next
Step 5 - Update Owner Accounting Options
- Search and open the Owner Accounting Options from the Menu Search
- Click the Owner Accounting tab
- Under Owner Income, tick the checkbox Create Owner Income Net of GST
- Choose the GST Sundry
- Click Save/Exit
RMS CHANGES
RMS will automatically split out the GST component off the base tariff on reservations and this will go to general transfers once the reservation is paid and departed.
Below is an example of the GST being split out on a reservation:
Below is an example of the Owner Audit Trail which shows where the GST is directed to:
Below is an example of the GST showing in General Transfers:
Comments
0 comments
Please sign in to leave a comment.