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VAT/GST on Owner Statements and Management Commission

How VAT/GST is Handled on Management Commission

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Written by Yury Gorelik

If you are a property manager who charges your owners a management commission, you can configure VAT/GST (or a similar tax) on that commission through the tax settings on the owner's Taxes tab. Lodgix then calculates and deducts the tax on the owner statement automatically. (The management commission is your property-manager fee, not a Lodgix charge.)

Setting Up Tax on Management Commission

To enable and configure VAT/GST on management commission:

  1. Navigate to Modules > Property Management > Owners, select the owner, and open the Taxes tab

  2. On the Taxes tab, set:

    • Name of Tax — Enter the tax name (e.g., "VAT", "GST", "HST", or your local tax name)

    • Tax — Enter the tax percentage (e.g., 15.0 for 15%)

    • Apply to Commissions — Check this box to calculate tax on management commission

    • Apply to Fees — Optionally check to also apply tax to management fees (rental, cleaning, other)

  3. Save changes

How Tax is Calculated

When you generate an owner statement with owner tax enabled:

  • Tax on Commission — Calculated as: (Total Management Commission × Tax Rate ÷ 100)

  • Tax on Fees — If enabled, calculated as: (Total Management Fees × Tax Rate ÷ 100)

  • Both are deducted from the owner's net balance on the statement

Example: If management commission totals $1,000 and the owner tax is 15%, the owner statement will show a $150 deduction on the "less [Tax Name] on Commissions (15.000%)" line.

Viewing Tax on Owner Statements

On each owner statement, you will see separate line items showing:

  • less [Owner Tax Name] on Commissions ([Rate]%) — Tax deducted from commission

  • less [Owner Tax Name] on Fees ([Rate]%) — Tax deducted from fees (if applicable)

These appear in both the PDF statement and Excel export, and are included in the final balance calculation for the owner.

Key Notes

  • Tax is recalculated each time you generate or regenerate a statement based on current owner settings

  • You can customize the tax name per owner to reflect your local tax requirements (VAT, GST, HST, etc.)

  • Tax is calculated on commissions (and optionally fees) for active reservations. Blocked reservations are excluded; cancelled reservations may still be included depending on your cancellation-fee settings.

  • The owner tax applies to your management commission and management fees only — it is not applied to the owner's gross rental income

  • Different owners can have different tax rates configured independently

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