VAT (Value-Added Tax)

Value-added tax (VAT) is a comprehensive consumption tax that is added to the value of products and services. In this article, we will walk through the steps to enable and use the VAT feature in MyTime. 

Things to know:

• Once the VAT setting is enabled, the 'Include VAT' filter will be added to the revenue-related reports allowing you to filter revenue with the included VAT or not
• Unlike regular sales tax, VAT is included in the item price rather than being calculated separately 
• If the VAT setting is enabled, the 'Apply Membership Value Credits' setting will be disabled. However, the previous selection for the 'Apply Membership Value Credits' setting will be honored when applying value credits in POS
• VAT is calculated based on the percentage configured in Business Setup > Settings, however, it will be included in the item price. VAT is calculated by adding 1 to the percentage configured. Eg: If the VAT percentage is configured for 20% the item price should be divided by 1.2. If a service price is £50 (VAT included) dividing it by 1.2 gives an ex-VAT price of £41.66, which means that the VAT is £8.33.
• VAT is not applied to gift card purchases

To activate the VAT feature, you will be required to enable the setting as well as configure a VAT tax in the 'Tax Configuration & Management' section:

1. Navigate to Business Setup > Settings 
2. Locate the Tax Configuration & Management section 
3. Click on the + Add Another Tax hyperlink > Configure the tax value that should be calculated for VAT. Learn more about configuring taxes here
4. Toggle the "Activate VAT for Pricing" setting to 'Yes'                                                                                                               
5. Save changes

Scenario

• Service Cost: £50
• VAT: 20% on all items (services, products, membership, gift cards and packages)

Checking Out Via POS                       

           

Checking Out Online

Reports

Include VAT checkbox checked - When checked VAT is included in the revenue displayed  

VAT checkbox unchecked - When unchecked VAT is excluded from the revenue displayed

For more information contact us at support@mytime.com or (385) 233-6964.