Dear Valued Client,

on the 9th July the UK Government announced that there would be a temporary reduction in VAT on certain supplies and services in the Hospitality industry.


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.

Release will take place on  the 9th July, est. time of release 9 AM.


HotelTime have made the following provisions:

  • All Accommodation system items (inc Meal Plans portion) on Open Reservation accounts and Post Masters will be re-calculated to the from 20% to 5% VAT rate.
  • All future and ongoing reservations will be recalculated to 5 % VAT rate.


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 automaticlly. 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