VAT Profiles are used in various places across the ReRum system, e.g. Invoices, Rate Plans, etc., and some, such as the UK Standard VAT Profile, come pre-loaded into the system. However, it is likely that you will need to add other Profiles to use.
The typical Profile to add for UK customers is VAT Notice 709/3 which allows the VAT on accommodation to drop to 0% for Room Stays over 28 days. Since Serviced Apartments include services, e.g. cleaning, the typical rule is that you charge 20% of the standard VAT, i.e. 20% of 20% = 4%.
The ReRum system allows you to setup VAT Profiles so that the tax rate will drop after a certain length of stay.
1 - Go to the Admin menu, hover over 'Finance', and select 'VAT Profiles'.
2 - Click 'Add VAT Profile'.
3 - Provide a name for the VAT Profile, and then a brief description.
4 - Click 'Add Tax Seasons'.
5 - Select a start and end date for the tax code by clicking on the relevant text boxes and choosing a date from the calendar that pops up.
6 - Click the blue magnifying glass next to the 'High Tax Code' text box.
7 - Scroll through the list to find the tax code you are after. Click on the desired option to add it.
8 - Input a number for the 'Boundary Day'. This box represents the number of days until the tax rate drops (after this length of Room Stay the tax rate will drop).
9 - Click the blue magnifying glass next to the 'Low Tax Code' text box.
10 - Scroll through the list to find the tax code you are after. Click on the desired option to add it.
11 - Click 'Save'.
12 - You will see the details you have just inputted under the 'Tax Seasons' section.
13 - Click 'Save Vat profile' to save everything you have just added.
14 - The VAT Profile you have just saved will now have been added to the list of Profiles already on the system.