Solutions

Hospitality Industry

Executive summary
  • Comprehensive, up-to-date tax data, including rates and rules for lodging and occupancy taxes as well as food and beverage taxes throughout the U.S.
  • Sophisticated calculation engine for streamlining and automating tax management and compliance
  • Integration with point-of-sale systems and e-commerce sites 
  • Ability to handle exemptions based on customer characteristics

Hospitality companies succeed by creating a seamless, high-quality experience for guests. Behind the scenes, however, you may still face challenges when it comes to managing transaction taxes across numerous jurisdictions. 

Vertex understands the unique nuances and details of hospitality taxes. We know that the number of nights affects a lodging transaction’s taxability—and that a food sale in a convenience store has a different rate than one in a restaurant. 

Tailored to the needs of hotels, online travel agents, restaurants and other hospitality companies, Vertex software centralizes management of tax rates and rules. It automates calculation of transaction taxes—helping ensure accuracy and compliance despite high levels of complexity. 

For compliance, Vertex provides an automated returns application to generate signature-ready returns for food and beverage taxes at the state and local level.

Features
  • Continually updated database of rates and rules data across taxing jurisdictions
  • Calculation of lodging and occupancy taxes, including taxes on resort fees, as well as food and beverage taxes
  • Transaction-level data stored in a transaction ledger
  • Automated management of exemptions based on customers’ residency or other characteristics
  • For food and beverage companies, automatic creation of signature-ready state and local returns for sales and use taxes
Benefits
  • Reduce compliance costs. By centralizing and automating tax management, you can substantially reduce the cost and improve the performance of tax compliance. 
  • Improve audit position. Hospitality companies are facing growing scrutiny around lodging and occupancy taxes. Ensuring the highest degree of accuracy helps mitigate risk—reducing the likelihood of audits and penalties.
  • Take control of complexity. In the hospitality industry, taxes are not based just on what was purchased. For restaurants, for example, taxes are determined by a range of variables—including what type of facility is selling the food, whether the food is meant to be consumed immediately or at home, whether or not the seller provides utensils, and even if the food is hot or cold. Vertex enables you to stay on top of that kind of complexity. 
  • Alleviate the returns burden. Whether using Vertex software or Vertex Returns Outsourcing, , hospitality companies now have a reliable solution to manage the complexities of compliance.
Associated Solutions
Managed Services
Let Vertex take the administrative aspects of sales & use tax compliance off your plate—returns, exemption certificates, business licenses.
Sales & Use Tax Returns Outsourcing
Outsource the entire returns lifecycle to Vertex - from preparation and filing to payments and funds management.
Returns Automation
Manage sales and consumer use tax returns with greater speed, accuracy, and efficiency.
Contact Vertex
Have questions or need assistance?
Contact Vertex now! 1-800-355-3500
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Resources

Vertex Indirect Tax for Hospitality

Effectively manage the most complicated areas of hospitality tax with the Vertex solution for rates, calculation, and returns.

Vertex Indirect Tax O Series

Learn about the industry-leading solution for enterprise tax management.