How VAT Revenue Split Works
Supported Booking & Posting Scenarios
FAQ
Key Takeaways & Benefits
What Is VAT Revenue Split?
The VAT Revenue Split feature is a revenue configuration used to apply multiple VAT rates to a single service by splitting its revenue into predefined portions.
This is useful when a service includes components taxed at different rates (e.g. food vs. non-food).
Once set up, the VAT split is applied automatically and consistently in all booking and posting scenarios, even when the service price is overridden.
How VAT Revenue Split Works
- A service is configured with multiple VAT portions, each with:
- A percentage of the total price
- A matching VAT rate
- The total price is split based on these settings.
- VAT is calculated per portion using the respective VAT rate.
VAT is calculated on the final price, not just the original configured price.
Example
Breakfast extra priced at €20:
- 70% food → VAT 7% → €14
- 30% drinks → VAT 19% → €6
When overridden to €25, the VAT split becomes:
- €17.50 at 7% VAT
- €7.50 at 19% VAT
No manual adjustment is required.
Supported Booking & Posting Scenarios
1. Service Booked as an Extra
- Service is added as an extra to a reservation.
- The VAT revenue split applies automatically to the extra’s price.
- If the price is overridden, the VAT split is recalculated.
✔️ Example: Breakfast added with a custom price → VAT split applies correctly.
2. Service Included in a Rate Plan Package
- Service is included in a rate plan package.
- VAT split applies to the allocated service price within the package.
- Changes to the price still follow the VAT configuration.
✔️ Example: Breakfast included in a rate → VAT split is applied to allocated revenue.
3. Service Posted as a Direct Charge on a Folio
- Service is posted directly to a folio using the service ID.
- VAT split is applied on posting.
- Editing the charge amount updates the VAT split automatically.
✔️ Example: Breakfast posted to a folio with a new price → VAT logic remains correct.
FAQ
❓ Are Service Packaging or Bundled-Service Scenarios Supported?
No. This feature does not support complex packaging such as:
- Multiple services bundled into one composite service
- VAT split across multiple services in a package
In such cases, VAT must be handled per individual service.
❓ Can VAT Portions Be Changed Dynamically Per Booking?
No. VAT percentages and rates are defined in the service configuration and apply consistently.
❓ Does VAT Revenue Split Change Accounting Exports or Tax Reporting?
No. VAT is calculated correctly at posting. Exports and reports continue to work based on calculated values.
❓ On Which Price Is VAT Calculated?
VAT is calculated on the gross price, but applied to the net price.
Formula: NET + NET × VAT% = GROSS
Key Takeaways & Benefits
- VAT Revenue Split works across all service usage scenarios
- Consistent revenue split in reports and exports using VAT amounts
- Handles manual price changes without breaking logic
- Ideal for mixed-VAT services like breakfast
- Not intended for bundled or composite services
- Reduces manual VAT corrections and accounting errors
- Only affects VAT and revenue distribution - not inventory or service ownership