Tax Configuration
Argonautas supports flexible tax configuration to handle different jurisdictions and tax structures. This guide covers setting up taxes, configuring per-property overrides, and ensuring compliance.
Tax System Overview
The tax system uses two layers:
- Company Templates -- Default tax rates that apply to all properties, on the Taxes & Fees page.
- Property Overrides -- Per-property adjustments on the villa's Pricing tab, when a property has different tax requirements.
Costa Rica IVA
The standard Costa Rica value-added tax (IVA) for vacation rental accommodations is 13%. It usually applies to the nightly rates and to taxable fees.
Setting Up IVA
- Open Taxes & Fees from the sidebar and select the Taxes tab.
- Click Add Tax.
- Configure:
- Tax Type: choose the matching type
- Display Name: IVA
- Tax Rate (%): 13
- Applies To: tick Nightly Rates and Taxable Fees
- Included in prices: leave unticked unless your rates already contain IVA
- Click Create Tax.
Tax-Inclusive vs. Tax-Exclusive
| Mode | How It Works | Best For |
|---|---|---|
| Tax-exclusive | Tax is added on top of the displayed rate | Transparency -- guests see the rate and tax separately |
| Tax-inclusive | The displayed rate already includes tax | Simplicity -- the advertised price is the total price |
Taxes are exclusive unless you tick Included in prices on the tax. An included tax is taken out of the amount instead of added on top, and it must be the company's only active tax. See Taxes Included in Your Prices.
Most Costa Rica property managers use tax-exclusive pricing so the IVA appears as a separate line item on invoices.
Taxes Included in Your Prices
Use Included in prices when your nightly rates and fees already contain the IVA, for example when they come from a system that quotes IVA-inclusive prices. The tax card on the Taxes tab then shows an Included badge.
With an included tax:
- Nothing is added to the total. The tax is taken out of the amounts it applies to. For a 13% IVA, the IVA inside an amount is 13/113 of it: a night priced at $1,130 contains $130 of IVA and $1,000 net.
- It's shown as included, never as an addition. The booking's Price Breakdown, the New Booking quote, the booking preview, the owner and partner booking views, and the guest's booking and payment pages show the tax as IVA (included), muted and not part of what adds up to the total. Invoices, vouchers, and receipts label it IVA (included) too.
- Credits move the total one-for-one. A $150 credit lowers the booking total by exactly $150, and the IVA inside the booking goes down with it.
- Commission is worked out without the IVA. The owner commission, agent and partner commission, and owner reports use the price minus the included IVA, the same base an added-on tax would give. The IVA itself still passes through to the owner, as it does for an added-on tax.
- Each booking keeps the rate it was priced with. A later change to the tax doesn't move a booking's commission or owner figures. When a booking is re-priced (for example, a charge, credit, or add-on is added), it is worked out with the taxes as they are configured at that moment.
- It is never sent to a channel as an added tax, so a channel can't add the IVA a second time on top of prices that already contain it.
Switching a tax between added and included changes how every new quote is worked out. An existing booking keeps the way it was priced until it's re-priced.
Example: a 7-night stay at $1,130/night plus a $226 taxable cleaning fee, with a 13% IVA included in prices that applies to Nightly Rates and Taxable Fees:
| Line Item | Calculation | Amount |
|---|---|---|
| Accommodation | 7 nights x $1,130 | $7,910.00 |
| Cleaning Fee | Flat per stay, taxable | $226.00 |
| IVA (included) | 13/113 x ($7,910 + $226), not added | $936.00 |
| Total | $8,136.00 |
The guest pays $8,136.00. The $936.00 of IVA is already inside it, so the amount before IVA is $7,200.00: $7,000.00 of accommodation ($910.00 of IVA taken out of $7,910.00) and $200.00 of cleaning ($26.00 taken out of $226.00). Commission is worked out on the $7,000.00. The cleaning fee passes through to the owner without commission (see Commission on Fees).
Multiple Tax Rates
Some jurisdictions require multiple taxes. Argonautas supports stacking:
- IVA (13%) on accommodation
- Municipal tax (varies by canton)
- Tourism tax (if applicable)
Each tax is a separate template, and each one is calculated on its own base. Taxes never compound on each other.
You can't stack taxes while a tax is included in your prices, because an included tax must be the company's only active tax.
Property Overrides
If a specific property has different tax requirements:
- Open the property and select the Pricing tab.
- Find the Taxes card.
- Switch the tax off for this property, or enter a different percentage.
Overrides only affect the selected property. Other properties continue using the company default.
How Taxes Appear
On Invoices
Taxes are displayed as separate line items below the accommodation and fee subtotals:
Accommodation (5 nights × $300) $1,500.00
Cleaning Fee $250.00
Subtotal $1,750.00
IVA (13%) $227.50
Total $1,977.50When your tax is included in your prices, the line reads IVA (included) and isn't added to the total. See Taxes Included in Your Prices.
On OTA Channels
With the standard channel connection, taxes are not sent to Airbnb, Booking.com, VRBO, or other OTAs. Set up taxes in each OTA's own settings. See Fees, Taxes and OTA Channels.
Common Questions
Can I change the tax rate mid-season? Yes. The new rate applies to new quotes and bookings. An existing booking keeps the rate it was priced with until it is re-priced (for example, a charge, credit, or add-on is added); it is then worked out with the current taxes.
Are taxes applied to fees as well as nightly rates? It depends on the tax's Applies To setting. With Taxable Fees ticked, the tax is charged on fees and add-ons marked Taxable. With only Nightly Rates ticked, it is charged on the accommodation alone.
Related
- Fee Configuration -- Setting up cleaning fees, service fees, and other charges.
- Tax Setup Walkthrough -- Step-by-step first-time setup.