How to configure VAT exemption for an existing product or rate in Mews Operations

Overview 

In Mews Operations, you can configure VAT exemption reasons to comply with regional tax regulations. These exemption reasons specify why a product or rate is tax-exempt, ensuring proper classification of billable items. When you apply a VAT exemption, the selected reason appears on invoices along with its legal reference. Note: Currently, Mews supports region-specific VAT exemptions only for properties in Italy, Poland and Germany.

 

VAT rates vary by region. Mews Operations supports all required VAT rates for your services and products. For example:

 

Country	Available VAT rates	Available exemption reasons
Italy	0% 4% 5% 10% 22%	N1 - Escluse ex art.15 N2.2 - Non soggette – altri casi N3.5 - Non imponibili – a seguito di dichiarazioni d’intento N4 - Esenti N5 - Regime del margine / IVA non esposta in fattura
Poland	0% 5% 8% 23%	ZW - Zwolniony NP - Nie podlega
Germany	0%	NATO(ZAbk) - Umsatzsteuerbefreiung gemäß Artikel 67(3)

 

Additionally, the "-" symbol indicates that a product or rate is tax-exempted. Pre-defined tax exemption reasons help classify billable items correctly according to regulations. Each exemption reason requires a legal reference to justify the classification.

 

In this article you can learn how to: 

• Configure a VAT exemption reason for an existing product or rate in Mews Operations

 

Configuring a VAT exemption for an existing product or rate in Mews Operations

To apply a VAT exemption to an existing product or rate in Mews Operations, follow these steps: 

1. In Mews Operations, go to the product or rate Pricing settings. 
2. Click  Adjust to open the pricing details. 
    
   
   
3. In the Tax rate dropdown menu, select "-" to indicate no fixed VAT. 
4. In the Tax exemption reason dropdown menu, select the corresponding reason. Note: The exemption reason must align with your business’s legal requirements. 
5. In the Legal reference field, enter the applicable exemption code followed by the relevant legal justification. Note: Mews does not provide a predefined list of legal references. Use the correct legal reference based on the exemption relevant to your case. To ensure compliance with local laws, we recommend consulting legal and tax professionals. 
6. Click Update to save the changes. 

This updates the VAT rate configuration with the exemption reason. 

 

When an invoice includes tax-exempt items: 

• The selected exemption reason appears in the tax summary. 
• The legal reference shows above the bill footer. 

 

Note: Changes to exemption details apply only to new invoices. Closed records without tax-exempted items remain unchanged. 

 

You can learn how to add a product to a bill here.