Breakfast VAT Split for Food and Beverages

Introduction

This article explains how breakfast charges can be split into separate food and beverage components when different VAT rates apply. This applies when breakfast is sold as an extra service and is not part of a package or accommodation rate.

Why Is the Breakfast Split Required?

In some jurisdictions, food and beverages may be subject to different VAT rates. To ensure correct tax handling, breakfast sold as an additional service may need to be posted to the folio as two separate charges:

• Food portion, using the applicable VAT rate for food

• Beverage portion, using the applicable VAT rate for beverages

How This Affects Breakfast Charges

This means that the breakfast service offered as an extra can be split into two separate components on the folio:

• Food portion

• Beverage portion

Automatic Split in Clock

Clock can automatically perform this split whenever breakfast is booked as an extra service.

Instead of posting a single breakfast charge, the system automatically creates two separate folio entries:

• Food portion with the configured VAT rate

• Beverage portion with the configured VAT rate

When Is the Process Triggered?

This process is applied whenever the breakfast service is booked as an extra using one of the following methods:

• through the Booking Engine

• through the Guest Portal

• by the hotel staff in the "Rates & Availability" section (see Image A)

• in the "Daily Charges" section within the reservation (see Image B)

Image A.

Image B.

System Setup

If you would like to enable this functionality in your hotel, please follow the steps below.

1. Create Service Templates

You will need three service templates:

Breakfast - Main Service

• Total price of the breakfast service

• This service is available for sale

Breakfast Components

• Breakfast - Beverages, using the applicable VAT rate for beverages

• Breakfast - Food, using the applicable VAT rate for food

• Configured with the appropriate price split

• Neither component should be available for online booking

2. Enable the App Connector

Enable the following App Connector:

• Breakfast VAT Split

• Category: Operations

• Path: Settings → App Connector

Completion & Support

Once the connector has been enabled, our team will complete the required configuration and notify you as soon as everything has been set up in your account.

If you have any questions, please feel free to contact our Support team at any time.