Setting up an additional VAT on Agency Commission - LBM

In some tax jurisdictions, it is necessary to declare an additional VAT on the Agency commission that is declared on each reservation. Booking Manager gives you the flexibility to set-up the general Commission VAT rule, and then to configure it also for each individual agency.

General Commission rule

In Preferences/Reservation settings there is an option to turn on the VAT for agency commission. In most cases, this rule will be set to 0% since most of the agencies are foreign and don't pay domicile tax.

Also, a lot of agencies work in their own name and send their own invoices to end clients. Therefore generally it is ideal that this tax is set at 0% initially.



1. In the Invoice tab in Preferences/Reservation Settings activate tax for Agency Commission and set the value to 0%
2,3,4 Check the additional settings for charging the tax on net price and removing the commission from the actual calculation

Individual Commission rules

Agencies that work in the name of the charter company receive payments for the service, but the charter invoice is issued directly to the end guest and the Agency Commission VAT needs to be declared on that particular invoice.

In the Work/Address book, next to the other Commission/ Business rules, you are able to set the individual tax rate.

In cases of Italian and Croatian companies, this is necessary to set for all domestic brokers that operate in the name of the charter provider.

1. Setting the Tax rate
2. Checking the rules for the commission calculation

3. Checking the way of calculation
4. Alternatively setting the "invoice guest" so that the end invoice is automatically in the name of the guest

Generating reservation/calculation

After setting these rules, every new charter calculation will properly declare the tax:


Old calculations that were created before we changed the rules will NOT be affected automatically so you can also change the tax amount directly on the calculation (1)
 

Printing the tax breakdown

The booking confirmation itself will have the special tax declared in the usual VAT breakdown section of the document and as such will be ready for proper bookkeeping when the final invoice is issued (1).