This guide provides detailed instructions for managing MyDATA/AADE submissions and Greek tax calculations, incorporating recent updates that simplify handling cancelled bookings.
How Cancelled Bookings with Cancellation Fees Impact Your Tax Liability
When it comes to managing your rental business, cancellations are an inevitable part of the process. However, it's important to understand how these cancellations can affect your tax liability. In this article, we'll explain how cancelled bookings with cancellation fees are seamlessly integrated into your AADE and MyDATA submissions, and how they impact your overall tax liability.
What Happens to the Cancellation Fee?
When a booking is cancelled, a cancellation fee is often charged to the guest. This fee is typically a percentage of the total booking cost and is meant to compensate for any losses incurred by the property owner. But what happens to this fee when it comes to tax calculations? There are two cases:
Cancellation before arrival with cancellation fee: in this case, a compensation document and stamp duty are issued, which does not include any other tax.
No show, the reservation remains active but the guest does not show up: in this case, the service is considered to have been provided and a regular document is issued for the reservation including VAT. There is no obligation for Climate tax, but the Accommodation fee is included.
Our tax tools support the second case only. The same method can be used in case 1. However, this entails a greater tax burden for the manager.
VAT for VAT-Liable Rentals
For properties that are VAT-liable, VAT (Value Added Tax) remains applicable even for cancelled bookings. This is because VAT is a tax on the value added to a product or service, and the cancellation fee is considered part of the value of the rental.
By including the cancellation fee in the VAT calculation, you are ensuring compliance with tax regulations and accurately reporting your earnings.
Cancelled bookings in taxation tools
While all active bookings are submitted to MyDATA at checkout time and to AADE registry until the 20th of the month the follows the checkout date, this is not the case for cancelled bookings. According to Greek law, cancelled bookings should be submitted to MyDATA on cancellation date and should be recorded to AADE registry until the 20th of the month the follows the cancellation date.
Displaying cancelled bookings in taxes page
Our Taxes Page make it easier to handle both of the cases by including a "Cancellation Date" column in the list of bookings to be submitted. With the "Cancellation Date" column, you can now clearly identify cancelled bookings and display them in a way that brings them up and front when their time for submission is getting closer.
By default, the view will prioritize bookings with recent checkout or cancellation dates.
"Checkout or Cancellation Month" Selector in the AADE Registry Submission Table
The AADE Registry Submission Table allows you to filter bookings based on their checkout or cancellation month. This way, when you review the bookings that need to be submitted to AADE registry in the current month you will be able to see both active bookings (based on their checkout date) and cancelled bookings (based on their cancellation date) so you have a full list of what need to be submitted.
Tax Document Handling for cancelled bookings
When submitting receipts and invoices to ERP, the system automatically excludes the climate tax receipt for cancelled bookings. This simplifies the process for businesses and minimizes the chances of errors or miscalculations.
Climate and accommodation taxes are excluded from the tax breakdown calculation used for the submitted receipts or invoices of cancelled bookings.
Additional Tips & Support
Keep abreast of any changes or updates to AADE regulations or tax requirements that may impact your submissions. Refer to official AADE resources or consult with a tax professional for further guidance. If you encounter any challenges or have questions regarding AADE submissions, tax calculations, or any aspect of the platform, our dedicated support team is available to provide assistance.
By following this comprehensive guide and utilizing the platform's updated features, you can confidently navigate AADE submissions and Greek tax calculations, ensuring compliance and minimizing potential complications.