The hospitality distribution technology company has updated its platforms to meet the requirements of the new tax regime being embraced by two GCC countries, the UAE and Saudi Arabia.
The new tax regime brings in a value added tax (VAT) of five per cent for hotels in the countries.
“With effect from January 1, bookings for properties on the STAAH Channel Manager and Booking Engine will dynamically include the VAT component on the gross tariff,” says Tarun Joukani, Director of STAAH.
“This is a huge step for the region’s economy, including tourism and hospitality businesses. We want to ensure that we provide our full support to our partner properties and help them make a seamless transition into the new tax structure.”
Under the new law, the 5% VAT will be levied on a number of hospitality segments, including accommodation, restaurants and entertainment activities. This does mean an additional cost when availing of these services, but the increase will be marginal because of the basic nature of VAT and the way it works in the form of credits and basic exclusions. VAT-registered businesses in the UAE will also be able to claim VAT credit for travel-related costs incurred for business purposes, thus negating the overall impact on price increases.
STAAH’s UAE customers will find that these tax changes will be dynamically implemented on their channel manager and booking engine from January 1, 2018. The update will reduce any manual errors on tax calculations, enable easy generation of precise reports on VAT amounts and help deliver VAT-compliant receipts.
STAAH’s UAE team is working closely with clients to help them manage the settings and ensure the system is working smoothly for them. If you have any queries regarding the update, contact your account manager.
The update will make STAAH among the first hospitality distribution technology companies to implement the VAT-complaint structure. STAAH’s cloud-based products have gained significant followers in the region in the recent times. STAAH recently announced closing 2017 with more than 10 million room nights booked globally via its platforms across more than 5000 partner properties in 70 countries.