How to activate automatic tax deposit?

The deposit functionality allows you to report and pay VAT at the time of payment instead of the time of consumption. The automatic tax deposit feature is only available if you use Mews Payments.

Note:

• For properties in the United States, Australia, and New Zealand: 
  • Do not select this feature, as you are not legally required to report deposits to pay VAT. This option is intended for properties that are legally required to account for tax upon receiving payment, so that they do not have to post deposits manually.
• When you create a rate group, Mews enables the automatic tax deposit by default only for properties located in countries where deposits are taxable.
• If you want to enable the deposit feature to handle taxes on prepayments, you can switch on the Tax declaration on deposits feature in the Accounting configuration. If you cannot see any deposit options in Mews Operations, click the slider switch on to enable the feature.

 

To activate the automatic tax deposit, follow these steps

 

1. Navigate to Menu > Settings > Services
2. Choose respective bookable service (e.g. Stay) > Rate groups
3. Scroll down to the Options section > select Automatic tax deposit.
4. Save the changes.

Note: The automatic tax deposit feature needs to be activated within each rate group category.

 

How can I test if the automatic tax deposit is working?

You can test the automatic tax deposit by creating a reservation in your demo environment Booking Engine. Follow these steps:

 

1. Go to your demo environment
2. Navigate to the Main Menu > Settings > Services 
3. Choose respective bookable service (e.g. Stay) > Booking Engines
4. Choose the booking engine > click Preview
5. Create a new booking (make sure to select one of the rates that belong to the rate group in which the feature is enabled).
6. Enter the test credit card and finish the booking.

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Note: It may take a couple of minutes to process the payment in Mews. Make sure to refresh too.

 

7. Go to the Billing screen of the reservation to see that the nights and the deposit have been posted. All of these items should be closed at check-out time.
8. Go to the Payments screen to find the closed bill for the deposit transaction and the credit card payment. Thay are processed automatically.

 

To learn more about payment automation and deposits, check our guides:

 

Understanding Deposits.

How to set up payment automation in Mews Operations