How to Configure Value Added Tax (VAT)

Modified on: Fri, 27 Sep, 2019 at 3:51 PM

Applies to:       Rover PMS    Rover Overlay

How to Configure Value Added Tax (VAT)

To set up VAT on charge codes in Rover, navigate to Settings > Financials > Charge Codes. If, for example, you have a City Tax or Tourist Tax in place, you would need to add a new charge code for these taxes. To do so, select +ADD NEW, enter a CHARGE CODE and DESCRIPTION, and then assign a CHARGE GROUP and CHARGE CODE TYPE. In this example, it would be best to assign a CHARGE GROUP of VAT and a CHARGE CODE TYPE of TAX

The next step is to indicate what AMOUNT this tax would be (typically, for taxes, you would enter a percentage amount), an AMOUNT TYPE (i.e., per adult, child, person, flat, or room), as well as a POST TYPE (i.e., per stay or night). Upon entering this information, select SAVE CHANGES to add this charge code to Rover.

After completing this step, you will need to add the VAT to Room Revenue. To do so, select your charge code for Room Revenue, go to the Tax Setup section, and select +Add Tax. From here, indicate that this is an Exclusive tax, since it is calculated separately from Room Revenue. Then, under CHARGE CODE, you can select the VAT you just created. 

Finally, simply select a CALCULATION RULE, which will either be ChargeCodeBaseAmount or ChargeCodeplusTax 1. ChargeCodeBaseAmount means you will calculate the tax on the Room Revenue only; whereas, ChargeCodeplusTax 1 means you will calculate the tax on on Room Revenue plus the tax. 

Upon entering this information (and selecting OK and then SAVE CHANGES), you have successfully configured VAT in Rover. For more information about VAT, view this video or contact Customer Support.

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