Step by step guide to managing UK VAT changes

Overview
On 8th July 2020, the UK government announced temporary reducing the rate of value-added tax (VAT) on hospitality and tourism from 20% to 5%, from 15 July 2020 to 30 September 2021 and an increase to 12.5% from 1st October 2021 to 31st March 2022. 
 
On 9th July, the government provided further information on the scope of this relief. For hotels and holiday accommodation, a business can benefit from the temporarily reduced rate. Section 8 provides useful and practical examples for you to check with your accountants.

MANAGING VAT CHANGES IN ELINA

Managing VAT updates in elina for reservations

  • VAT changes (because different depending on the customer) need to request us on an email to change the default VAT (if applicable) and we will change it for you - Get in touch with us.
  • VAT levels need to be formally requested to be changed to enable new reservations to have the updated VAT level
  • There is a button to change the VAT level for bookings made already that need the VAT level and amount updated

VAT on guest, company profiles and dynamic rules

  • Check your guest, company profile and dynamic rules are updated to the new VAT level by going to reservation invoice rules.
Add ons & fees
  • Check if add ons and fees are as per the new VAT guidelines.


CHANGING VAT ON EXISTING RESERVATIONS IN ELINA

We have introduced a button "Recalculate Booking" to help you recalculate bookings including VAT level. This button is located on the "Edit Reservation" screen and needs to be used on all applicable reservations.


UPDATING VAT ON ADD ONS

 


UPDATING VAT ON FEES


ADDITIONAL IMPORTANT INFORMATION

Group reservations 
You will need to go to each reservations and use the new feature - “Recalculate Booking” from there. 
 
Recurring Invoices
Any recurring invoices already created in elina will need to be credited back and re-issued again. 
 
Manual Invoices
You will need to credit back the invoices and re-issue new invoices. 
 
Reservations for more than 28 nights
You will need to read the government regulations (explained with example) with your accountants and accordingly take further steps.  
 
Deposits, cancellation and other charges
 
Please refer to the UK government's guidance (section 7.1) on Deposits, cancellation (section 7.2) and other charges such as booking fees, service charges (section 7.3)



FAQS

Q) What permissions do I need to see this button?
A) You need to have the edit booking permission enabled. If it is not, ask your settings manager.
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Q) When do we need to do this?
A) On of after the 15 July 2020 for Uk businesses.
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Q) I have a reservation checking in on 10th July and checking out on 20th July OR 28th September 2021 - 5th October 2021? How do I manage this?
A) You will need to shorten the existing reservation until 14th July and create a new reservation from 15th to 20th July.  This would be the same case for reservations in September 2021. 
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Q) How to do VAT changes for past reservations?
A) Please refer to our FAQ here
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Q) What happens when there is existing credit on the guest /company profile?
A) Please refer to our FAQ here
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