Overview
In VRTrust, VAT is handled in a way that ensures:
Revenue is reported gross (before VAT)
VAT is clearly visible and auditable
Deposits reconcile exactly to Booking.com payouts
Owner statements and trust balances remain accurate
This article explains how VAT appears on the Deposit Detail screen and how it should be reviewed and handled.
Gross Revenue Reporting
Reservation revenue in VRTrust is always reported gross, meaning:
The full reservation amount is recorded as revenue
Revenue is not reduced for VAT withheld by Booking.com
VAT is recorded separately as a tax-related expense
This ensures revenue is not understated and reporting remains consistent.
VAT Assigned to Specific Reservations
When VAT can be tied directly to a reservation:
The VAT amount is assigned to the reservation
It appears on the Reservations tab of the deposit
The VAT line is associated with the reservation detail
The VAT is recorded as an expense to the Property Manager by default
This allows clear traceability between:
Reservation revenue
VAT charged
Net cash received
VAT Not Associated With a Specific Reservation
In some cases, Booking.com may withhold additional VAT that is not clearly tied to an individual reservation (for example, rounding differences or aggregate adjustments).
In these situations, you have two valid options:
Option 1: Record as a Non-Reservation Expense
Record the VAT on the Non-Reservation tab
Post it to a VAT / GST Expense account
Bill to Manager
This keeps reconciliation clean and reflects the withheld amount accurately
Option 2: Allocate VAT Across Reservations
Split the VAT amount appropriately
Apply the allocated amounts to individual reservations
The VAT remains recorded as an expense to the Property Manager
Both approaches are acceptable and result in correct accounting.
Passing VAT Through to the Owner (If Required)
If VAT withheld and recorded in deposits should be charged to the property owner instead of absorbed by the property manager:
Configure VAT expense fee as an Other Fee in Fees & Commissions
This allows VAT to be:
Automatically applied to reservations
Passed through to the owner
Clearly disclosed on the owner statement
Using an Other Fee ensures VAT is:
Applied consistently
Auditable
Properly reflected in owner reporting
Deposit Summary Explained
On the Deposit Detail → Summary, you may see:
Reservation Total → Gross reservation revenue
Non-Reservation Total → VAT not tied to specific reservations
Total → Net amount deposited to your bank
The Total will always match the Booking.com payout, ensuring accurate reconciliation.
Key Takeaways
Reservation revenue is reported gross
VAT tied to reservations appears on the Reservations tab
VAT is recorded as an expense to the Property Manager by default
VAT not tied to a reservation may be:
Recorded as a Non-Reservation expense, or
Allocated across reservations
If VAT must be charged to the owner, add an Other Fee in Fees & Commissions
Deposits reconcile exactly to Booking.com payouts and cash received in the bank.
For jurisdiction-specific VAT or GST treatment, always consult your accountant or tax advisor.