Due to evolving tax rules in the USA, Booking.com will begin withholding and remitting taxes directly to the US tax authorities for Virtual Credit Card (VCC) Reservations.
This change is being rolled out in 3 Phases based on property location:
- Phase 1 May 13th, 2024: Maine, New Hampshire & North Dakota
- Phase 2 Sept 16th, 2024: Arkansas, North Carolina, South Carolina, Utah, Wisconsin and Wyoming
- Phase 3 Nov 18th, 2024: Colorado, Georgia, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Mississippi, Montana, Nebraska, New Mexico, Oregon and West Virginia
The details of these changes from Booking.com can be found here: Understanding tax remittance management in the US.
What does this mean for RoomKeyPMS Clients?
For Properties in States where tax is NOT being withheld, this update simply involves updated Reservation Notes. Reservation Notes will now clearly identify the reservation as a Virtual Credit Card Booking and will also display the amount the Virtual Credit Card will cover on the Guest Folio.
If the "Amount to charge Virtual Credit Card" does not match the room charge and tax posted in RoomKeyPMS you must confirm that the Room Charge Code and Taxes are setup in Booking.com Partner Hub EXACTLY as they are in RoomKeyPMS (Transaction Codes)
If your property is located in one of the states listed in the phases above, and accepts prepaid reservations from Booking.com with a Virtual Credit Card (VCC); you must follow these steps:
- Choose one of the options below
- Contact our Support Team [email protected] to confirm your option and the room charge code your property will use for the Booking.com reservations with tax withholding and remittance.
OPTION 1: Use the existing room charge code and taxes setup in RoomKeyPMS
This is acceptable if your property does NOT charge local taxes or fees.
OPTION 2: Create a new room charge code and taxes
This option is required if your property applies hotel fees or local tax charges to your Booking.com guest reservations. If you are not sure which taxes will be withheld, please review your tax settings in Booking.com Partner Hub.
For example below:
- RCH room charge code with 8.5% BDC Tax and a $10 Resort Fee that is applied to all guest reservations
- A new RCHBCVC room charge code WITHOUT the 8.5% BDC Tax (because this is now withheld and remitted by Booking.com) but WITH the $10 Resort Fee.
