The information below will explain how the Tax totals section of the end of period reports is calculated. The following topics are covered:
VAT on deposits
Tax calculation on the Analysis Codes
Tax Calculation for the Tax totals section on the End of Day report.
VAT on Deposits
All deposits taken through Rezlynx will have VAT applied to them. The VAT is select in the Ini-Settings of the system, and usually in the UK has the standard rate of tax1 applied.
It is important to have the VAT set for deposits to be set correctly during the installation as any deposit received will have this rate of VAT applied to it. Any change made in the rate will only apply to deposits taken after the change has been made. For example, if the rate of VAT was changed from 20% to 22% on 1st January 2099, all deposits taken before 1st January 2099 will have the VAT of 20% calculated on them and 22% on deposits received after this date.
When a reservation that holds a deposit is checked in, the deposit will move from the Deposit Ledger to the In-House Ledger. The VAT on the deposit will be reversed, as the funds are now classed as payments not deposits. Any VAT from this point on will be based on the analysis codes attached to the products posted onto the room bill / event bill.
VAT on Analysis Codes
All analysis codes in Rezlynx have a VAT rule attached to them which is used to calculate the correct rate of VAT for that analysis code. The VAT rule is applied to the analysis code in the system Settings, under the Analysis Codes
section:
All products have analysis codes attached to them, set when the product is created under Settings, Rates and the option of Products. For example, the product of Breakfast may have an analysis code of Breakfast attached to it, in turn this analysis code has the standard rate of VAT attached and therefore 20% tax would be calculated on this product.
Tax Totals on the End of Day Report
The following information is a breakdown of how the Tax Totals are calculated on the End of Day report. The same section also appears on all end of period reports and is calculated in the same way but based on the relevant period.
The period end reports are as follows:
End of Day
End of Week
End of Month
End of Year (only available when the system date is enabled)
The examples below are all based on the End of Day report. Ensure the system has completed the End of Day before checking the report so it is accurate and up to date.
The Tax Totals are found on the last page of the End of Day report and will display all VAT rules and any tax which has been calculated on each one for that day:
The Tax Totals are made up of the total VAT of any analysis codes that have been posted to for that day.
The Tax Totals also include any VAT calculated on the Deposits Received for that day considering any deposits which have been refunded, retained or changed to an in-house status.
To check the totals the following calculation can be followed:
Tax Total = Total VAT on analysis codes
+ VAT on deposits
– VAT on retained deposits
– VAT on refunded deposits
– VAT on in-house deposits
Below is example of this calculation:
The End of Day totals of the analysis codes, showing the total tax as 483.33:
The Deposits section of the End of Day:
The negative symbol on the Deposit Received is an indication of a credit to the system so any calculation must be based off this as a positive figure, as you are calculating the tax on the value physically taken.
The Calculation:
Total tax of analysis codes: 498.33
Plus, total tax on Deposit Received: 70.00 (20% VAT of 420.00)
Minus total tax on Deposit Refunded: 20.00 (20% VAT of 90.00)
Minus total tax on Deposit Retained: 20.00 (20% VAT of 90.00)
Minus total tax on Deposit In-House: 13.33 (20% VAT of 90.00)
Total VAT: 525.00
This total matches the total on the Tax Totals section of the End of Day report:
