Beside the general and the first reduced tax (15%), you can encounter second reduced tax (10%) rate since the 1st of May 2020. What does it apply to? The essential circumstance is the value added to catering facility - service, providing of seats, cleaning of tables, restrooms. You can find he division of specific examples below. You can set everything in the administration according to this manual. It is necessary to have the most updated version of the application.
10% rate
Food served in a restaurant facility (unless it is a catering facility which is completely freed from VAT - schools, hospitals, home for elderly people, etc.)
Drinks and beverages served and consumed on the spot (meaning in a glass that the guest does not carry away) - soft drinks, draft beer, drinking water.
15% rate
Take away food (e.g. ice cream in a cone, hot dog at the stand), food for delivery, soft drinks sold to go (e.g. in a cup at the stand), bottled drinking water or the one from a vending machine, coffee to go.
21% rate
Alcoholic beverages served and consumed at the catering facility, at the stand or in the store. Tobacco products served and consumed in catering facilities and at the stand or shops.
Practical example
Before the change of law (until the 1st of May 20'):
The guest orders a two lunch menus with a drink in your restaurant. The drink to one menu will be non-alcoholic, to the other it would be an alcoholic one. In such situation, the VAT payer (you as the restaurant operator) must apply the first reduced tax rate (15%) for the lunch menu and a soft drink and the basic tax rate (21%) for the alcoholic beverage as a part of the catering service provided.
After the change of law (since the 1st of May 20'):
The guest orders a two lunch menus with a drink in your restaurant. The drink for one menu will be non-alcoholic, for the other alcoholic, specifically draft beer. In this situation, the payer of value added tax (the restaurant operator) must apply a second reduced tax rate (10%) for the lunch menu and both drinks as a part of the catering service provided. However, if the guests ordered wine or bottled beer, it would be necessary to apply the basic rate to these items = 21%.
How does new VAT work with Storyous POS?
Since some items will have two different VAT rates (e.g: beer in a restaurant will have a rate of 10%, beer to go in a cup 21%), it is possible to set second VAT rate for each item. There is one column you have used so far - VAT (inside), and a new column with VAT (to go/take away). The adjustment procedure is as follows:
In the web administration in the Places section, Products tab, change the VAT (inside) for those products that you will sell with a different VAT rate inside and to go. (1) It is possible to use group actions so you don't have to set one by one. (2)
Set the second VAT rate (to go) for products that you will offer to go or for a delivery service.
In the Tables section, create a table for takeaway/delivery. When you edit this table, it will be possible to select the table type "Takeaway". When you charge the items on the “To go” table, Storyous POS automatically assigns a VAT rate (to go) to the products. If you charge the items on any other table, the default value, i.e. VAT (inside), will be used.
If you would like to use the so-called Quick Order for this purpose, i.e. without sitting at a table, it is necessary to set the required rate in the web administration in the Places section at the Place Settings tab.
It is possible to change the VAT manually always after charging the product but before confirming the order.
Also, the VAT of the product will no longer be the same for all places under one business ID. If you have more than one, it may vary depending on the places. The price can also be different for each place.
If you have any doubts, we recommend to consult this with your accountant or financial department to ensure that the changes apply to you and, if so, under what conditions.