Firstly, please accept our apologies for the previous incorrect advice relating to the VAT change. We now recommend that early on the morning of Wednesday the 15th you simply change your existing Default VAT rate for acommodation (and any relevant extras) from 20% to 5%.
Since the announcement by the Government we have brought forward our plans to implement a new VAT Return Report to replace the reporting of VAT on the current Sales report. This also necessitates some changes to our invoicing and unfortunately we will not have both of these features ready for Wednesday, however historical reporting of your VAT will be correct once these are completed.
In the grand scheme of things, 1 week was not a great deal of notice by the Chancellor, coming at a time when we were mid way through a project also dropped on us at short notice by one of our partners, to implement some changes to the way tokenised OTA cards are charged. This was deployed as planned yesterday and went off without a hitch.
So, until we can finalise our work on invoicing, changing the "Default" rate of VAT for acommodation and extras to 5% will mean all invoices raised by users on the Standard VAT scheme will be correct unless they have taken a deposit. Likewise, anyone using the Cash accounting scheme who hasn't taken a deposit, will be able to raise invoices which are correct.
This leaves a number of users who have taken deposits before arrival for whom the current invoicing will generate incorrect values. Where possible, in the interim we would suggest instead printing the booking record as a receipt once all payments have been received.
Where an invoice is needed by a business guest, you can forward a VAT invoice once we have completed the required changes to the functionality.
The new VAT return report will provide accurate figures for reporting VAT whether you are on the Standard or Cash scheme. We know from speaking with some of your accountants that the VAT figure on the Sales report could be confusing and so it has always been our intention to clarify this.
Rest assured, we are working hard to get these changes and others tested and live as quickly as we can for you. Thank you for your patience as we continue to improve Caterbook.