| Purpose | Explains how to configure taxes and fees that apply only under specific conditions: by date range, by accommodation type, or based on the nightly room rate (rate-based dynamic tax). |
| Best for | Property owners and admins who need to apply taxes conditionally based on season, room type, or rate thresholds |
| Use this when | Your property has seasonal taxes, room-type-specific fees, or government-mandated taxes that vary based on the nightly rate (such as GST in India) |
| You need | Owner or admin access to Cloudbeds PMS. A basic tax or fee must be created in Finance > Taxes and Fees before configuring these advanced options. See Create and apply taxes and fees. |
| Expected result | Your tax or fee is configured to apply automatically only when the defined condition is met - the right dates, the right room type, or the right rate threshold. |
| Important limit | Rate-based (dynamic) tax works correctly only with Primary Sources. Results may be inconsistent on third-party OTA sources because some OTAs send average or gross rates instead of the actual nightly rate. |
When creating a tax or fee in Finance > Taxes and Fees, you can configure it to apply only under specific conditions. This article covers the three available advanced options and when to use each one.
| Option | Use this when |
|---|---|
| By date range | The tax applies only during certain dates - for example, a seasonal tourism fee or a temporary legislative change |
| By accommodation type | The tax applies only to certain room types - for example, a resort fee that applies to suites but not dormitories |
| Rate-based (dynamic) tax | The tax percentage varies depending on the nightly room rate - commonly used for GST in India and similar tiered government taxes |
These options are configured during the tax creation process. If you haven't created a tax yet, start with Create and apply taxes and fees.
Apply a tax by date range
The Date range setting lets you restrict a tax or fee to a specific period. Cloudbeds PMS uses the stay date of the reservation - or the posting date of a manual transaction - to determine whether the tax applies.
Common uses include seasonal tourism taxes, temporary legislative changes, and special event fees.
How to configure
- Go to Account
> Settings
> Finance
> Taxes and Fees
- Create a new tax or fee, or open an existing one to edit
- In the Date range field, the default setting is Available for all dates - change this to Specific date range
- Set the Start and End dates
- Set the amount
- Click Save
Useful options when setting the date range:
- Forever - check this if the tax has a start date but no defined end date (for example, a legislative change that goes into effect permanently from a certain date)
- Repeat yearly - check this for taxes that apply on the same dates every year, such as a summer tourism fee from June 1 to August 31. The system removes the year from the date range and repeats it automatically.
When Specific date range is selected, both the start date and end date are required fields. The end date must always be after the start date. We recommend using the calendar picker to avoid date entry errors.
Multiple date ranges for the same tax
If you need to apply the same type of tax across multiple separate date periods, click + Add date rule to add additional date ranges within the same tax configuration. This avoids the need to create multiple separate tax entries for the same tax type.
Apply a tax by accommodation type
The Apply to selected accommodations setting lets you restrict a tax or fee to specific room types. When a reservation is created, Cloudbeds PMS checks the accommodation type and applies the tax only if the room type matches your configuration.
Common uses include resort fees that vary by room category, local taxes that differ based on accommodation classification, and tourist taxes tied to specific property segments.
How to configure
- Go to Account
- Create a new tax or fee, or open an existing one to edit
- In the Apply to selected accommodations field, the default is All accommodation types - click the dropdown to select specific room types
- Select the accommodation types you want the tax to apply to
- Click Save
Properties with different tax rates per room type
If your property applies different rates to different room types - for example, a higher resort fee for suites than for standard rooms - create a separate tax entry for each rate. Configure each entry with its own accommodation type selection and amount, then apply all relevant entries to the same reservation source in Property > Sources.
Rate-based (dynamic) tax
Rate-based tax - also called dynamic tax - lets you configure a tax whose percentage varies depending on the nightly room rate. When a reservation is made, Cloudbeds PMS checks the nightly rate against your configured thresholds and applies the matching percentage.
This tax type is commonly required for GST in India and other government-mandated tiered tax structures where lower room rates attract a lower percentage and higher rates attract a higher percentage.
Rate-based tax works correctly only with Primary Sources. Some OTA channels send the average daily rate or gross rate rather than the actual nightly rate, which can result in the wrong tax tier being applied. Use discretion when applying this tax type to third-party sources.
How it works
You define a set of rules. Each rule says: if the nightly rate is greater than or equal to [amount], charge [percentage]%. The system evaluates the rules from lowest threshold to highest and applies the matching tier.
The "greater than" rule type functions as "greater than or equal to." For example, if you set a rule of INR 1,000 at 12%, the system applies 12% to any nightly rate from INR 1,000 to INR 2,499.99 (assuming the next rule starts at INR 2,500).
How to configure
- Go to Account
- Click + New tax or fee
- Set Available for to Reservations - this is required for rate-based tax and auto-selected when you choose the rule type
- Enter a Title
- Optionally check Inclusive if the tax is already included within the rate
- In the Rule dropdown, select Rate-based percentage
- In the first rule row, enter:
- Transactions greater than - the minimum nightly rate threshold for this tier
- Charge - the tax percentage to apply at this tier
- Click + Add rate rule to add additional tiers
- Repeat for each rate tier you need to configure
- Click Save
After saving, apply the tax to the correct reservation sources in Property > Sources. The tax won't appear on reservations until this step is completed. See Create and apply taxes and fees.
Example: GST setup for properties in India
Indian government regulations require both CGST (Central Goods and Service Tax) and SGST (State Goods and Service Tax) to be configured separately. The recommended approach is to create two rate-based tax entries - one for CGST and one for SGST - each with the same rate tiers.
As a reference, the GST tax slabs applicable in India are structured as follows:
| Rule | Nightly rate threshold | Tax rate |
|---|---|---|
| Default / 1st rule | Less than INR 1,000 | 0% |
| 2nd rule | INR 1,001 or more (up to INR 2,499) | 12% |
| 3rd rule | INR 2,500 to INR 7,500 | 18% |
| 4th rule | INR 7,501 or more | 28% |
The GST slabs above are provided as a reference based on information available at the time of writing. Always verify current tax slabs with your accountant or tax advisor before configuring.
OTA-specific guidance for rate-based tax
Because OTAs send rate information differently, the recommended configuration varies by channel:
| Channel | Recommended setup |
|---|---|
| Booking.com | Do not set up GST on the Booking.com extranet. Booking.com calculates GST based on the average daily rate for the full stay, not the actual nightly rate. Instead, set up GST as an exclusive tax in Cloudbeds PMS and apply it to the Booking.com source. |
| Ingoibibo, Goibibo, Makemytrip, HotelTravel, Easytobook | Set up as inclusive tax in Cloudbeds PMS |
| Yatra, TravelGuru | Set up as inclusive tax in Cloudbeds PMS |
If the rate-based tax option doesn't appear in your Cloudbeds PMS account, contact Support.
Comments
What is the difference between payment fee and fee selection?
Hello, Melissa Owens,
Our dedicated Support Team will contact you with more information about this request.
Best regards!
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