Kutchan Tax Report

If a Kutchan tax price component profile has been set up and mapped to your accommodation products, the Kutchan Tax Report page allows you to download a form for submitting your monthly tax filing. You can configure Kutchan Tax on the Price Component Profiles page.

The calculation method and report format have been discussed with Kutchan, and it is believed they will accept this approach. However, please verify with your tax accountant that the reported values meet your tax reporting and payment obligations.

Key Points

Legal Disclaimers

RoomBoss cannot warrant that the reported values:

• Fulfill your legal responsibilities for tax reporting and payment.

• Represent the minimum values required by 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.

Report Coverage

Room Stays: Reports room stays checking out in the selected month.

Assumptions: Booking values include Sales Tax and Bed Tax.

Calculation Basis:

• Based on the total booking value (not nightly values).

• Uses the Sell price for direct bookings.

• Uses the Gross/Net price as reflected in the settings for agent bookings.

Exclusions:

• Bookings with a zero Gross or zero Net/Sell value are omitted.

• Bookings not allocated to a room are not included.

Kutchan Tax Calculation and Reporting FAQ

Tax Calculation Overview

Kutchan Town has provided a calculation method to derive the Kutchan tax from a nightly amount that excludes both Kutchan tax and consumption tax. Because RoomBoss (and our integrated booking sources such as Booking.com, Expedia, etc.) work with tax-inclusive prices, we derive the tax amounts from the full booking value.

Some booking values might not have an exact tax value since the Kutchan taxable amount is rounded down to the nearest 100 yen.

Calculation Method Details

Inputs:

• Booking Amount: Depending on the source/settings, this is either the Gross or Sell amount.

• Optional Non-Kutchan Taxable Amount: Typically represents additional charges like breakfast.

Steps:

1. Calculate Taxable Amount:

Taxable amount = (100 / 112) * (Booking amount – non-taxable amount)

1. Calculate Accommodation Consumption (Sales) Tax:

Consumption Tax = (10 / 112) * (Booking amount – non-taxable amount)

1. Calculate Kutchan Tax:

Kutchan Tax = (Taxable amount, rounded down to the nearest 100 yen) * (2/100)

Handling Remainders:

• Where possible, any remainder is applied to increase the Kutchan taxable amount without altering the tax.

• If not possible, the consumption tax is adjusted. This may result in minor discrepancies (offset by -1, 1, or 2 yen).

Important: Please verify this calculation method with your tax accountant.

Frequently Asked Questions

Is the calculation method acceptable?

Confirmed that it is accepted by Kutchan Town on 26th August, 2019. However, it’s important to double-check with your accountant.

Can the tax be calculated based on the total booking value rather than nightly values?

Yes, as confirmed by Kutchan Town on 26th August, 2019.

Is reporting based on bookings checking out in a chosen month acceptable?

Yes, this approach has been confirmed by Kutchan Town on 26th August, 2019.

Should tax be calculated on the Gross or Sell price for agent bookings?

Due to different interpretations of how travel agency fees are treated, an option is provided to calculate the tax based on either the Sell or the Gross amount.

Why isn’t any tax value reported for bookings with zero Gross or Net/Sell values?

If no sales value is recorded in the system, no tax can be reported.

Additional Resources

• Setting Up and Reporting: For more details on configuring and reporting the Kutchan tax in RoomBoss, please refer to the Price Component Profiles page.

• Questions & Support: If you have further questions about RoomBoss setup or usage, please reach out to us. For questions about your tax responsibilities, please consult with your tax advisor.