If your local government announces a tax rate change (for example, a tax decrease on F&B items from 10% to 7%), Mews will update all your open and unconsumed items with the new tax rate at midnight on the day that the law comes into effect.

Are tax laws changing in your country? Contact our Customer Care team with a link to the law or government announcement.

How does it work?

For example:

On July 15, the tax on accommodation is changing from 20% to 15% and the tax on F&B is changing from 10% to 7%.

A reservation is staying from July 12-16. Three nights of this reservation will be consumed before the tax change (July 12, 13, and 14) and should have a 20% tax; one night will be consumed after the tax change (July 15) and should have a 15% tax.

Nights or rates:

  1. You contact Mews to let us know about upcoming tax law changes.
  2. We contact you to verify the change.

    Before the day of the tax change:
  3. You need to split any reservations arriving before and staying over on July 15 (the day the tax change comes into effect).
    - This will shorten the existing reservation to July 12-15 and create a second reservation from July 15-16.

    Why should you split the reservation? If you close a bill with nights 12-14 on it without splitting the reservation, you won’t be able to make changes (such as repricing) to that reservation after July 15.
  4. You need to close any bills with items consumed before July 15.
    - Nights consumed on or before July 14 need to be on closed bills. If they remain on an open bill, they’ll be updated with the new and incorrect tax rate.
  5. If you report VAT at the time of consumption in your country, you need to rebate any closed bills for future stays that are consumed on or after July 15.
    - Don't do this if you report VAT at the time of payment in your country.
    - We’ll only update open items with the new tax rate. If you don’t rebate these closed, unconsumed items, they’ll have the previous (incorrect) tax.

    On the day of the tax change, at midnight:
  6. We’ll update all your open and unconsumed items with the new tax rate.
  7. You check that everything is correct.
    - Do not close any bills that have incorrect tax rates on them.


Important: If something is incorrect, contact Customer Care as soon as possible. We can’t fix any items once the editable history window has passed.

Products:

1. You contact Mews to let us know about upcoming tax law changes.

2. We contact you to verify the change.

3. If the new tax rate is not already an option in Mews, we'll notify you when the new tax rate has been added.
- For example, the tax on food and beverage is decreasing from 10% to 7%, but there is no 7% tax rate option in your product settings.

Before the day of the tax change:

4. You need to split any reservations arriving before and staying over on July 15 (the day the tax change comes into effect).
- This will shorten the existing reservation to July 12-15 and create a second reservation from July 15-16.


Why should you split the reservation? A per night product (such as breakfast) should be posted for 3 nights at 10% and 1 night at 7%. If the product is added to the reservation on or after July 15, it will be incorrectly posted for 4 nights at 7%.

5. You need to close any bills with items consumed before July 15.
- Products consumed on or before July 14 need to be on closed bills. If they remain on an open bill, they’ll be updated with the new and incorrect tax rate.

6. If you report VAT at the time of consumption in your country, you need to rebate any products on closed bills that will be consumed on or after July 15.
- Don't do this if you report VAT at the time of payment in your country.
- We’ll only update open items with the new tax rate. If you don’t rebate these closed, unconsumed items, they’ll have the previous (incorrect) tax.

On the day of the tax change:

7. Go to Main menu > Settings > Services.

8. Select a service. You can choose any service, whether it is stay or non-stay.

9. Click Products.

10. Click Update tax rates.

11. Under Products, select the products affected by the tax change.

12. Under Tax rate, select the new tax rate.

13. To apply the tax change to all open and unconsumed bill items:

  • Select Apply rate change to open product postings.
  • Under Consumed after, select a date to only apply the rate change to products consumed after this date.

We recommend selecting the date that the tax change comes into effect, at midnight (for example, July 15 at 0:00).

14. Click Update.

  • The tax rate update will be applied immediately to all applicable bill items.

15. You check that everything is correct.

  • Do not close any bills that have incorrect tax rates on them.

Important: If something is incorrect, contact Customer Care as soon as possible. We can’t fix any items once the editable history window has passed.

City Tax:

  1. You contact Mews to let us know about upcoming tax law changes.
  2. We contact you to verify the change.
  3. You prepare for the upcoming tax change: If you set up city tax as a product, follow the same steps listed for products. If you set up city tax using the fixed city tax feature, follow the same steps listed for nights and rates.
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