For more on setting up and reporting Kutchan tax inside RoomBoss please see Price Components.
Information on how the tax values are calculated and reported is below.
We encourage that you verify with your tax accountant that the values reported meet your tax reporting and payment obligations. We are unable to warrant that the values reported:
- Fulfill your legal responsibilities for reporting and payment of tax.
- Are the minimum possible values that will satisfy the tax authorities.
Please contact us with any questions about the setup and use of RoomBoss. If you have questions about your tax responsibilities please speak to Kutchan Town and/or your accountant.
The Kutchan Tax Explained
Kutchan town have provided a calculation method to calculate Kutchan tax from a nightly amount excluding both Kutchan tax and consumption tax.
Kutchan council have yet to provide a formula to calculate the Kutchan tax from the full booking value.
As RoomBoss (and booking sources we integrate with, such as Booking.com, Expedia, etc.) work with a tax inclusive price, it is necessary to derive the tax amounts from the full booking value.
Please note that there are some booking values for which no exact tax values exist: Tax calculation includes a rounding step, wherein the Kutchan taxable amount is rounded down to the nearest 100 yen.
What calculation method is used for the values displayed in RoomBoss?
Inputs
- Booking amount (Gross/Sell) depending on source/settings.
- An optional non Kutchan taxable amount (this would usually represent breakfast).
Taxable amount = 100 /112 * (Booking amount – non taxable amount)
Accommodation Consumption (Sales) Tax Amount = 10 /112 * (Booking amount – non taxable amount)
Kutchan Tax Amount = Taxable amount (rounded down to the nearest 100 yen) * 2/100
The above calculations in many cases will leave a remainder.
Where this remainder can be applied to increase the Kutchan taxable amount without changing the Kutchan tax this is done; where it can not be, the consumption tax is adjusted.
Note this can result in consumption tax value that is offset -1,1 or 2 yen from the expected value.
Is this calculation method okay?
Please verify this with your tax accountant.
We have asked Kutchan if it is acceptable to adjust the consumption tax value in this way, even if it results in a value which is less than 10% of the taxable amount.
Confirmed by Kutchan Town on 26th August, 2019.
Is it okay to calculate and report values based on the total value of the booking, not nightly values?
Confirmed by Kutchan Town on 26th August, 2019.
Is it okay to report on bookings checking out in a chosen month rather than by stay dates?
Confirmed by Kutchan Town on 26th August, 2019.
Should tax be calculated on the Gross or Sell price for agent bookings?
The Kutchan documentation states that “Commissions paid by lodging facilities to travel agencies” are taxable but also that “Fees taken from guests by travel agencies” are not.
Local companies have taken different interpretations of what this means, so we have provided the option to calculate tax on either the sell or the gross amount.
Why is no tax value is reported for bookings which have either a zero value Gross or zero value Net/Sell?
If no value is recorded for the sales in the system no tax can be reported.