"Tourist Tax: how difficult can it be?"
5.344 different tax rates in ONE city, that's how hard it can be!
“𝙒𝙝𝙮 𝙙𝙤𝙣’𝙩 𝙥𝙡𝙖𝙩𝙛𝙤𝙧𝙢𝙨 𝙙𝙤 𝙞𝙩 𝙩𝙝𝙚𝙢𝙨𝙚𝙡𝙫𝙚𝙨?"
Two weeks ago, we announced that we sourced all Swiss data on tourist tax into our platform. This data is, amongst others, used by online booking platforms to calculate and, where applicable, collect the correct rates on their bookings. This may sound like a simple process and in fact, we often get the question, "Why don't booking platforms just collect this data themselves?" Because it's a bit more complicated than you might think.
𝟭𝟬𝟬.𝟬𝟬'𝘀 𝗼𝗳 𝗿𝗮𝘁𝗲𝘀
A telling example is Verona, Italy. Here you come across 5.344 (!) possible scenarios that have a rate...yes, that’s five-thousand, three-hundred and forty-four.
Not only can municipalities themselves have very complex rule structures (like Verona) tourist tax rates commonly vary for each municipality. This leads to tens-of-thousands of different tax rates. Across the world? Yes, also. But in Italy alone you’ll come close to 200.000 different rates.
“𝙏𝙝𝙖𝙩 𝙘𝙖𝙣’𝙩 𝙗𝙚 𝙩𝙧𝙪𝙚, 𝙧𝙞𝙜𝙝𝙩?”
But how can that be, I hear you wonder? Let’s zoom in on our example in Verona.
- The applicable tourist tax rate depends on:
- The type of accommodation;
- The number of stars of the accommodation;
- The age of the guest(s);
- The group size, and;
- Whether the online platform has an agreement with the government or not.
This all leads to 5.344 different scenarios. Obviously, it is nearly impossible to comply with tax rules like this if you don’t radically simplify your approach. However, At Trippz, we believe that our customers shouldn’t worry about simplifying their approach. We do that for with a unique data model.
𝗔 ‘’𝘀𝗶𝗺𝗽𝗹𝗲’’ 𝘀𝗼𝗹𝘂𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗮 𝗰𝗼𝗺𝗽𝗹𝗲𝘅 𝗽𝗿𝗼𝗯𝗹𝗲𝗺
Our unified data model represents all different tourist tax scenarios in the same way. This removes the complexity of all these pricing structures and transforms these into one single data stream, which online booking platforms can integrate into their systems. With almost 30 countries so far, including the tourist tax in the Netherlands, we cover many major tourist destinations. Are you looking to comply at scale with local tourist tax regulations? Look no more!
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