4 Replies Latest reply: Nov 27, 2018 1:22 PM by grant570 RSS

    How do we handle tax exempt group wanting to book property?

    erjomiller New Member

      We have a return guest wanting to book our property in Ohio for a boy scouts leaders annual meeting.  We want to accept the group.  In the past, they booked through a managing Inn that handled all the tax collections/tax exempt issues.  But now we are solely using VRBO and on the inquiry they did not mention anything about being tax exempt, I just happened to remember from before.  I'm afraid if I accept  without adjusting the tax on the quote, this will be an issue that comes back to bite us either with the guest or at tax time, if we don't address from the start.  Has anyone else had experience with booking a tax exempt group with any tips or info.?

        • Re: How do we handle tax exempt group wanting to book property?
          ohst8er Senior Contributor

          This is a question best left for your accountant.  I know you would need to ask for a form showing their TE status, (I know this from my hotel days), but since I've not ever booked a TE group in my VR, and since I've never worked in Accounting I do not know what our accting dept did after I gave them the form from our groups. 

          • Re: How do we handle tax exempt group wanting to book property?
            feibus CommunityAmbassador

            ACCEPT THE RESERVATION.

             

            Even if they're tax exempt, they have accepted the rate and costs in order to book, so you're in the clear.

             

            If they have tax exempt status they want to assert, get their info, then later refund any taxes VRBO sends you as part of their remittance (the 3% fee will get refunded from VRBO when you do the refund, so that part's a wash).

            • Re: How do we handle tax exempt group wanting to book property?
              ambidextrous Active Contributor

              The group may not be exempt from tax. This is not tax advice of course, but I work at a non-profit and book hotels for our conferences. We are tax exempt in our state. When we go outside the state, we may or may not be exempt, and we may have to file for a tax-exempt certificate for the state we visit, which we may or may not get.

               

              Our exemption is for sales tax, and may not extend to lodging tax or other similar non-sales taxes. In the state where my VR is located, we have a lodging tax. No one is exempt from paying it.

               

              My advice as a fellow owner would be to accept the reservation, which presumably includes the taxes. Your guests are always able to show a receipt to the state and request a refund from the state. I would not lower the rate in anticipation of not taking taxes out of their payment.

              • Re: How do we handle tax exempt group wanting to book property?
                grant570 Active Contributor

                www.tax.ohio.gov     looks to me like ohio has a relatively simple exemption forms, they even have one for out of state customers...   Not all states give exemptions to sales and use taxes to federally exempt organizations, so it is a state by state issue...