Question
How does tax collected differ from tax payable in reports?
Solution
The tax amount is determined by the tax rate set for the venue or product in ROLLER. In reports, you'll find the terms tax collected and tax payable.
Tax collected is the tax amount collected from the guest at the time of purchase, while tax payable is the total tax amount included in gross revenue that is recognized and due once the booking is redeemed or has expired. Tax payable is important for recognizing revenue when using accrual accounting.
| Term | Definition | Example |
|---|---|---|
| Tax Collected | The total tax amount collected from guests, and included in the transaction funds received, at the time of purchase. | On January 1st, a guest purchases a ticket for $20, which has $2.00 in tax included. This booking is scheduled for March 1st. The $2.00 tax is designated as tax collected in reports on January 1st. |
| Tax Payable | The total tax amount included in gross revenue that is owed for the specified time period. | On January 1st, a guest purchases a ticket for $20, which has $2.00 in tax included. This booking is scheduled for March 1st. On March 1st, when the booking is redeemed at POS or expires, the money shifts from deferred revenue to gross revenue for accounting purposes. Tax payable is the total tax value included in gross revenue that needs to be paid now. |