For more on setting up and reporting bed tax inside RoomBoss please see Price Components

Information on how the tax values are calculated and reported is below.

The method of calculation and format of the report have been discussed with Kutchan and it is our belief that they will accept this. However, you should verify with your tax accountant that the values reported by RoomBoss meet your tax reporting and payment obligations. 

Specifically, we make no assertion that the values reported inside RoomBoss:

  • fulfil your legal responsibilities for paying / reporting 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.

Why is the calculation of Kutchan bed tax complicated?

Kutchan town have provided a calculation method to calculate bed tax from a nightly amount excluding both bed tax and consumption tax.

As RoomBoss (and booking sources we integrate with such as Booking.com, Expedia) work with a tax inclusive price it is necessary to derive the tax amounts from the full booking value.

Kutchan council have declined to provide a formula to calculate the bed tax from the full booking value.

In itself this should still be straightforward, however, as the tax calculation includes a rounding step (the bed taxable amount is rounded down to the nearest 100 yen), there are some booking values for which no exact tax values exist.

What calculation method is used for the values displayed in RoomBoss?

Inputs

  • Booking amount (Gross/Sell) depending on source.
  • An optional non bed 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)

Bed 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 bed taxable amount without changing the bed tax this is done, where it can not be, the consumption tax is adjusted.

This can result in consumption tax value that is offset -1,1 or 2 yen from the expected value.

Is this calculation method ok?

Please verify this with your tax accountant.

However, we asked Kuchan if it is ok 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.

Mr. Oomori of Kutchan Town confirmed this on 26th August, 2019.

Is it ok to calculate and report values based on the total value of the booking, not nightly values?

Mr. Oomori of Kutchan Town confirmed this on 26th August, 2019.

Is it ok to report on bookings checking out in a chosen month rather than by stay dates?

Mr. Oomori of Kutchan Town confirmed this on 26th August, 2019.

Why does the report calculate values using the Gross price for agent bookings?

This is the requirement of Kutchan.

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.