How to verify and rectify incorrect VAT applied to billing items

Mews PaymentsMews OperationsMews POS

If you apply VAT rate changes incorrectly, some billing items may show outdated or inaccurate tax values. This typically affects reservations with consumption dates around the time there was a change in VAT rates, especially if you already billed the items. In Mews Operations, these discrepancies can lead to accounting issues or misreported tax totals. To maintain accurate financial records and comply with local tax requirements, it is important to verify the affected items and apply the correct VAT retroactively.

 

In this article, you can learn about: 

 

How to verify if you have applied a VAT incorrectly

To verify if you have applied an incorrect VAT to any of your bills: 

  1. In Mews Operations, go to the main menuMenu arrow right  > Finance > Accounting report.
  2. In the the Accounting report, fill in the following fields:
    • Type: Click to select:
      • Created: If you know the creation date of the affected bills.
      • Consumed: If you know the consumption date of the items on the affected bills.
    • Mode: Click to select Detailed.
    • Start: Click to select the start date for the affected bills.
    • End: Click to select the end date for the affected bills.
    • Group by: Click to select Tax rate.
  3. Click View report.
  4. In the Revenue section of the report, check if the Bill item column contains any of the updated VAT values.

 If you identify any items containing the incorrect VAT values, you can rectify your transactions to ensure the system applies the correct VAT by following the steps in the next section.

How to apply VAT corrections

To apply the VAT corrections:

 

  1. In Mews Operations, create a new additional service. Note: Ensure you select “Has overridable price” under Options.
  2. Create products for your service that you can use to enter corrections manually.
  3. In the Accounting report, fill in the following fields:
    • Type: Click to select:
      • Created: If you know the creation date of the affected bills.
      • Consumed: If you know the consumption date of the items on the affected bills.
    • Mode: Click to select Detailed mode.
    • Start: Click to select the start date for the affected bills.
    • End: Click to select the end date for the affected bills. 
    • Group by: Click to select Tax rate.
  4. Click View report > Click + to expand the items with the incorrect VAT rates to view the affected transactions.
  5. Click the transaction name > Click the owner’s name to go to their profile.
  6. In the customer profile, in the Billing tab, click Add bill to create a new open bill.
  7. In the new bill, click Add product > select your newly created service.
  8. In the Add product side-window:
    • For the product you created, named for example "Correct VAT".
      • In the Quantity field, enter the value "1”.
      • In the Amount field, enter the incorrectly reported gross amount.
    • For the product you created, named for example "Incorrect VAT".
      • In the Quantity field, enter the value "-1”.
      • In the Amount field, enter the incorrectly reported gross amount. Note: Perform these actions only for the products applicable to your transaction. For example, to correct a 3.8% VAT, using the suggested product names, add “1” for Correct VAT 3.7, and “-1” for Incorrect VAT 3.8.
  9. Click Create. This creates a 0€ revenue product for the purpose of correcting the specific, incorrect VATs.
  10. If the original item that you rectify is on:
    • A closed bill: Close the newly created bill.
    • An open bill: Move that item to the newly created bill and then close the bill.
  11. Repeat steps 5-10 for every transaction with the incorrect VAT. 

This corrects the VATs for the incorrectly reported items in your bill. 

      If you have any questions, contact the Mews Support team by accessing the Mews Digital Assistant in Mews Operations. 

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