This chapter lists and discusses the different ways this can be accomplished as well as lists the problems and complications involved.

Option 1 = The rate can be loaded into Edit Rental Rules and Rates as 50.00 francs tax inclusive and an Option Set can be added to the rules record indicating that the rate is VAT inclusive.

The reservation Confirmation will show as: 1 day at 50.00 = 50.00 charge. We can extract the VAT out of the rate and print that on the res confirmation.
Example: 1 day at 50.00 = 50.00 (includes 3.57 VAT). That extraction also occurs in the DBR posting so that the RA will post as 46.43 TIME and 3.57 VAT.

Option 2 = Load the rates as net rates. The Reservation Confirmation would read 1 day at 46.43 plus 3.57 VAT = 50.00 charge.

PROBLEM ONE:

There are problems with these two options.

Option 1, only allows for the VAT to be included in the TIME rate, and NOT any add on Sales or Other Options. Example, you cannot set up the LDW rate as VAT inclusive in CARS+. If you load the LDW rate as grossed up by the VAT rate, we cannot extract the VAT portion. We will either report it as non-taxed to accounting and the government or we will calculate VAT on top of the tax inclusive rate doubling the Tax.

Option 2, can mislead the public as to thinking that the 46.43 would now be Vat Inclusive.

A combination of the two options can be accomplished by:

Option 1, The Time rates could be loaded as Vat inclusive while all other options are loaded as Vat exclusive. Customers are initially price shopping the best Time rate options. Then you allow the agents to sell the options as LDW is 9.28 per day plus VAT.

Confirmation Example:
TIME 1 day @ 50.00 = 50.00
LDW 1 day @ 9.28 + .72 VAT = 10.00

PROBLEM TWO:

Penny ending rounding. If we load rates as net (VAT exclusive), we can end up with a penny ending rounding issue when we try to report the price as VAT Inclusive. Take the net TIME rate of 46.43 mentioned above, a 5 day rental at that rate is 5 X 46.43 = 232.15. At .077 VAT rate, that is 17.87 VAT so our calculation comes out as: 5 days @ 46.43 plus 17.87 VAT = 250.02. You want it to be 250.00 (5 X 50.00).

This can be eliminated by loading the TIME rate into CARS+ as VAT inclusive and 5 X 50.00 = 250.00.
But because we don’t support tax inclusive Options rates (Problem 1 above) we cannot avoid penny ending rounding when calculating VAT on all other options.

PROBLEM THREE

This problem is a little harder to explain, it also is related to the penny ending rounding issue.

Although we can make CARS+ look like it is calculating VAT on each line item on the RA, in reality we really aren’t. Internally, we calculate a taxable subtotal and calculate VAT on the taxable subtotal.

Looking at our 5 day rental, the calculations on the RA will look like this:

TIME 5 X 46.43 = 232.15 plus 17.87 VAT = 250.02
LDW 5 X 9.28. = 46.40 plus 3.57 VAT = 49.97 - again “messy total”

It looks like the total VAT is 17.87 + 3.57 = 21.44

Wrong, VAT is calculated as follows:
232.15 + 46.40 = 278.55 VAT Taxable subtotal
278.55 X .077 = 21.45 - that penny ending got us again!

So we end up printing the RA something like:

TIME 5 X 46.43 = 232.15 plus 17.87 VAT = 250.02
LDW 5 X 9.28. = 46.40 plus 3.57 VAT = 49.97

Total VAT = 21.45

f you look at this carefully you can see that it looks like we added in an extra penny of tax. The rental agreement can be set to just print the total VAT on the final close and not showing the VAT for each chargeable line.

PROBLEM FOUR

Switzerland does not have a coin for the last decimal position. In USD terms you have no "pennies or nickels”. In fact if you could have your way there would be no decimal part of the charge at all. 5 days at 50.00/day and LDW at 10.00/day = 300.00. Nice, neat, no pennies and no coins needed at all. It is 300.00 francs VAT inclusive.

But the rules of mathematics does not work this way when you are dealing with fractional percents (7.7% VAT rate).

By luck, the RA we have discussed so far does work out “cleanly” 232.15 + 46.40 + 21.45 VAT = 300.00.

But it could have just as easily, if the number of days were different, to come to say 240.01 for a 4 day rental.

We do have a way to deal with this. By FOP we can configure it so that it comes to:

Subtotal. 240.01
Adj. .01
Grand Total 240.00
VISA pymt. 240.00
Balance due. 0.00

The payment adjustment occurs automatically once the payment FOP is entered into the system. This payment adjustment occurs in Standard CARS+.

The res confirmation can print so that the final column is always VAT inclusive: 1 day at 46.43 plus 3.57 VAT = 50.00 charge.

II. SET UP

Option 1 (Rate only inclusive)

EDIT OPTION SET CODES

Create an option set for the "T" Tax or "V" for Vat, Item and enter the earliest this could be effective.

OPTION:__ EDIT OPTION SET CODES # *Code Item PC Eff Date Term Date CR Date/Empl Mod Date/Empl 01 T TAX 12-01-22 02 03 04 05

EDIT RENTAL RULES/RATES (Page 1 field 36)

Enter this Option Set Code created above "T" to Edit Rental Rules/Rates on page 1 field 36, (Incl Opt Set).

See Thermeon Customer Support for the options to show the reservation Confirmation as:

1 day at 50.00 = 50.00 charge.

Where we can even extract the VAT out of the rate and print that on the res confirmation.

Example:

1 day at 50.00 = 50.00 (includes 3.57 VAT).

That extraction also occurs in the DBR posting so that the RA will post as 46.43 TIME and 3.57 VAT.

Option 2 (Net Rates)

There would be little or no set up required, other than the Rate and Options to be set up as net rates and the Reservation confirmation can print in such a way that the final column is always VAT inclusive.

Example:

1 day at 46.43 plus 3.57 VAT = 50.00 charge.

Contact Thermeon Support for any printing options available.