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IMPORTANT INFORMATION – UK VAT CHANGE ANNOUNCEMENT

In the Chancellor’s summer statement yesterday, he shared the government’s plans to change UK VAT from 20% to 5% for the hospitality and tourism sectors. This change will come into effect from Wednesday 15th July 2020 and run until 12th January 2021. The change will not apply to all revenue departments as VAT on alcohol will remain the same.

What do I need to do and when do I need to do it?

The Hotel Executive has four VAT codes, 0,1,2,3 and most hotels will only be using 0 and 1; 0 being 0% VAT and 1 being 20% VAT.

So, the first step is to create a new VAT code for departments selling alcohol. The VAT rate will need to be set to 20% and this can be done anytime between now and Wednesday 15th July 2020.

The second step is to change the VAT rate on Wednesday 15th July 2020 for all non-alcohol departments. This is as simple as changing VAT code 1 from 20% to 5%.

How to do it?

Step 1 (prior to 15th July 2020): Creating a new VAT code in the Hotel Executive (HE) setup program

  1. From the main dashboard of HE hover over Back Office and select ‘Setup’.
  2. In the setup screen click ‘Financial’ and select ‘Departments’.
  3. In the bottom right you will see VAT setup, and for most hotels you will be using ID 0 for 0% VAT and ID 1 for 20% VAT. Therefore in ID 2 you need to add 20 to the rate field.
  4. On the departments screen change the VAT code on the alcohol departments from 1 to 2 and then close setup.

To change the VAT in Banquet EPOS, the steps are as follows:

  1. Open Banquet Back Office and click on “Setup”.
  2. Click on department setup and in the right hand side you will see VAT setup.
  3. Add 20.00 next to code 2.
  4. On the department screen change VAT from 1 to 2 for all alcohol departments.
  5. Close Banquet Back Office.
  6. Restart Banquet on all tills and tablets.

Step 2 (on 15th July 2020): Changing VAT rate in the Hotel Executive (HE) Setup program.

  1. From the main dashboard of HE hover over Back Office and select ‘Setup’.
  2. In the setup screen click ‘Financial’ and select ‘Departments’.
  3. In the bottom right you will see VAT setup, and for most hotels you will be using ID 0 for 0% VAT, ID 1 for 20% VAT and ID 2 for 20% for alcohol.
  4. Change the rate in ID 1 from 20 to 5. Do not change ID 2.
  5. Close setup.

To change the VAT rate in Banquet, the steps are as follows:

  1. Open Banquet Back Office and click on “Setup”.
  2. Click on department setup and in the right hand side you will see V.A.T Setup.
  3. Change VAT code 1 from 20 to 5, do not change VAT code 2.
  4. Close Banquet Back Office and restart Banquet on all tills and tablets.

If you have any issues changing the VAT rate, please call our support team on 0330 223 1456 and press option 2 or email helpdesk@avondata.co.uk and our team will be happy to assist you further.

2020-07-24T16:05:12+00:00