Video - Adding 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 -
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'
