VAT Profiles

VAT Profiles are used in various places across the system for invoices, rate plans etc.

The system comes pre-loaded with a UK Standard VAT profile but you will probably need to add additional profiles for use.

The typical profile to add for UK customers is the one for VAT Notice 709/3 which allows the VAT on Accommodation to drop to 0% for days beyond 28 days. Because Serviced Apartments are not only accommodation as they include other services such as cleaning then the typical rule is that you charge 20% of the VAT i.e. 20% of 20% = 4%.

In order to set up a new VAT profile to allow for the drop at 28 days you can do the following:

1-: Click 'Add VAT profile'

2-: Add a name i.e. 'Hotel VAT'

3:- Add a description 'VAT drop at 28 days'

4:- Click 'Add Tax season'

5:- Start date - we recommend add this as the current date

6:- End date - we recommend pushing this out to a date in i.e. 31/12/2020

7:- High Tax Code - Click on the blue magnifying glass to lookup the TAX code. Select Standard 'Sales Standard 20%'

8:- Boundary day - set this to 28 (this tells it at what days will it change the tax code)

9:- Low Tax Code - Click on the blue magnifying glass to lookup the TAX code. Select 'Sales Hotel Long Term VAT 4%'

10:- Click 'Save'

11:- Click 'Save Vat profile'

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