Germany - VAT change 01.01.2021

Valued Customer,


for a limited period of time has DE government provided reduction of the VAT rate from 19 percent to 16 percent and of the reduced VAT rate from 7 percent to 5 percent for revenues from 1 July 2020 to 31 December 2020.  

We will return VAT rate today back from 16 percent to 19 percent and of the reduced VAT rate from 5 percent to 7 percent with effective from 1 January 2021.



HotelTime have made every effort to ensure that the minimal manual work is required by Hotel in order to comply with the new VAT rules.


However the responsibility for setting the correct VAT rates for Guests and recording it correctly lies with the Hotel. Therefore Please make extensive checks to ensure that all of your rates and services have the correct Rate Code according to the requirements and Tax liabilities of your property.

HotelTime have made the following provisions:

  • All open Accommodation system items (inc Meal Plans portion) on Open Reservation accounts and Post Masters will be re-calculated to the from 16% to 19% VAT rate.
  • All open services in 5% will be changed to 7% VAT rate.
  • Added items on account today will have new VAT rate already, you can edit the VAT rate on item manually.


Please check your RateCodes settings. Have a look on videos:

Rate Code with no change required

Rate code with change required


Please note, this change doesn't include these points, that needs to be done manually:
1. If you add items on accounts manually (Reservation - Menu - Add item), these items wouldn't be recalculated automatically. 

Please make sure, your Hotel product and services are updated to new VAT charge manually. Have a look on video here -

HotelTime tab Settings - Application - Product and services - hotel


2. We don't recalculate revenue in the past, even the hotel account is still open. This may lead to differences on revenue and invoices items. 

3. We don't recalculate outlets services and items.

For interfaces between HotelTime and Revenue management tools and prices synchronization (partner Atomize etc.), hotel needs to check the final prices in Revenue manager extranet.

Customer support department

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