Identifying the VAT tax transaction code

If the property parameter TAXINVATPAYMENT check box is selected, the payment tax invoice functionality is enabled. You must select the VAT Tax check box on the tax transaction codes for the purpose of VAT reporting. For the system to determine the VAT amount, the system totals all the posted tax charges that have the VAT TAX check box selected on the transaction code used to post the charge. You must identify the VAT tax transaction code by selecting the VAT TAX check box on the transaction code because some areas have local taxes or other inclusive taxes or service charges. Some properties use more than one transaction code for VAT taxes.

You must also specify the property parameter VATTRANSACTION. This is a tax transaction code is used by Reporting when a report needs to display a single code to represent all the transaction codes that have the VAT TAX check box selected. You must also select the property parameter TAXINVATPAYADVTRAN (Tax Invoice at Payment Advance Payment Transaction) check box. This parameter calculates advance payment taxes and is set up as a posting transaction code. The system calculates taxes based on the tax group on this transaction code. These taxes may or may not be VAT. Many properties use this transaction code to post the room charge. In the simplest of the setup, there is at least one transaction code used by the property that has the VAT Tax check box selected and is specified as the value in the VATTRANSACTION field.