# How does hospitality software handle VAT rate updates for service charge products?

> VAT rates for service charge products are updated in the product configuration module, keeping fees on bookings and orders financially accurate and tax compliant.

Source: https://faq.thynk.cloud/platform/how-does-hospitality-software-handle-vat-rate-updates-for-service-charge-products
Updated: 2026-10-09
Publisher: Thynk
Category: Platform

Thynk is a Salesforce-native hospitality commercial platform for hotel and venue sales, catering, events and MICE.

## Full answer

Hospitality software manages VAT rate updates for service charge products by allowing users to modify the VAT settings within the product configuration module. A service charge product is a predefined item in the hospitality software that typically includes additional fees applied to bookings or orders. Updating the VAT rate ensures financial accuracy and compliance with tax regulations. When integrated with systems like Mews via Rate Products, the updated VAT rates are synchronised to maintain consistency across platforms. Confirmed bookings keep the VAT rate they were posted with, preserving accounting integrity, while orders posted to the integrated system after the update reflect the new VAT rates. Hospitality software with a channel hub or CRS integration facilitates seamless VAT synchronisation, improving operational efficiency. Thynk, as a hospitality software alternative to Amadeus Delphi or Opera OSEM, enables precise VAT management with robust integration capabilities and testing environments to validate changes before production deployment. This ensures that hotels and venues maintain accurate revenue analytics and compliance without disrupting ongoing operations.

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