Managing Tax/Vat Rates

Overview: What are we talking about? 

Depending on the where your business resides, you may need Revelation Pets to charge Tax (US) and/or VAT (EU/UK) on bookings. This article will review setting up your application's Tax/Vat rates. 

This article includes: 

• Understanding the Tax Setup Page
• Managing Multiple Tax Rates
• Understanding VAT and how it is applied to EU/UK Rev Pets customers

Related Articles:

• Rev Pets Payments Overview
• Rev Pets Payments Dashboard 
• How to Sign Up for Rev Pets Payments

Let's Get Started with this Video Overview! 

Understanding the Tax Setup Page

Navigate to Account Settings » Your Account » Tax Setup

The first field on the Tax Setup page distinguishes whether tax is exclusive or inclusive.  

• A tax exclusive rate means a price that does not have taxes included initially but is charged tax later on (for example, price tags on retail goods).
• A tax inclusive rate means a price that already has taxes factored into it (for example, the price for a service charged by a merchant).

The next field on the Tax Setup page asks if you'd like a tax drop down filed per line in the Costs section of the booking. 

• When selecting "yes", each line item will display the Tax dropdown. 

An example where this setup is useful, is if as a business do not have to charge tax for services like boarding and daycare but as a business you do need to charge tax on retail items. 

• When selecting "no", each line item will not display the Tax dropdown. Only one Tax dropdown will display for the entire booking. 

The last setting on the upper half of the Tax Setup page, is the Tax Registration Number field (for some businesses this may be an optional field).

On the lower half of the Tax Setup page, you can add one or multiple Tax Rates.

All tax rates created on this page will display in the Tax dropdown, so the appropriate rate can be selected and added to the booking. 

Managing Multiple Tax Rates

If your region requires different tax rates for separate services in Revelation Pets, Revelation Pets enables you to assign tax rates individually on a booking.

First, let's start with the Your Account >> Tax Setup page:

• Tax Exclusive - Tax Per Line Disabled

How it looks on a booking:

• Tax Exclusive - Tax Per Line Enabled

How it looks on the booking:

• Tax Inclusive - Tax Per Line Disabled - Show net amount on invoice Disabled

How it looks on the booking:

• Tax Inclusive - Tax Per Line Disabled- Show net amount on invoice Enabled

How it looks on the booking:

• Tax Inclusive - Tax Per Line Enabled- Show net amount on invoice Disabled

How it looks on the booking:

• Tax Inclusive - Tax Per Line Enabled - Show net amount on invoice Enabled

How it looks on the booking:

Next, let's cover exporting of your tax rates and their breakdowns using the Payment Report:

When Exporting the Reports » Payment Report to Excel, if you have multiple tax rates, the total amount of tax across all selected bookings where payment was made will be added together then divided up evenly across all payments.

For Example: If you have a $1.00 charge with a 10% tax (tax exclusive) and another charge for $1.00 with a 20% tax (tax exclusive) and 2 payments have been made for $2.03, the tax would show in the report divided equally. ($1.02 each payment)*

*Please note: Decimal rounding with percentages can cause the cents to be off a couple of cents on the Payments Report export compared to the actual booking tax breakdown)

Understanding VAT and how it is applied to EU/UK Revelation Pets customers

If you have additional questions about managing Tax or Vat rates, please reach out to our Support Team at support@revelationpets.com