Re-evaluate tax exemption eligibility when reservation length crosses tax-exempt threshold
Problem
For jurisdictions where guests become tax-exempt after a certain length of stay (for example, 30+ days), Mews calculates tax when each night is posted and locks that calculation permanently.
If a reservation is initially below the exemption threshold and is later extended beyond it, only the newly created nights receive the exemption. Previously posted nights remain taxable, requiring manual correction.
Business Impact
- Significant manual effort for properties managing long-term stays.
- Increased risk of tax correction errors.
Proposed Solution
Provide a controlled mechanism to re-evaluate tax exemption eligibility when a reservation crosses a configured threshold.
Potential approaches:
- Automatically recalculate eligible, uninvoiced nights.
- Allow a user-initiated "Recalculate Tax Exemption" action with appropriate permissions.
- Provide warnings when extending a stay across a tax exemption threshold.
- Recalculate only where fiscal/compliance requirements permit.
2
votes