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Resources and guidance for supporting employees, customers, and partners during this unprecedented health crisis.

  • December 15, 2020

FLIP your hotel to meet new tax compliance demands

Trevor Sands
Senior Director, Oracle Hospitality Strategy
This is a syndicated post, view the original post here

Tax relief.

Governments worldwide were quick to help hoteliers impacted by COVID-19. It’s been a critical lifeline, allowing operators to pay less in taxes and pass along savings to guests to help boost business. But that help may be waning.

In the coming year, operators will face significant changes in legislation regarding tax collection and auditing. Governments are pursuing indirect taxes such as GST (Goods & Services) and VAT (Value Added Taxes) to compensate for revenue declines in other areas. And they’re evaluating more effective ways to capture existing taxes via audits and other means. Fortunately, innovations such as next-gen fiscal integration platforms can help hoteliers tackle these taxing challenges.

Why fiscal compliance is changing

A recent report, “VAT Gap report for Europe” highlighted that the 28 EU member countries lost an estimated €140 billion in tax revenues in 2018 and are anticipating a shortfall of about €164 billion in 2020. Governments are placing greater emphasis on GST and VAT, in part, because they believe that direct taxes (personal and corporate) are near their ceilings and additional revenue sources are needed.

That shift will lead to a rapid introduction of new legal and fiscal requirements and policies that will require hoteliers to modify their processes and procedures. Changes might be as basic as adding additional fields or a QR code to a folio. But extensive fiscal integration – requiring the sending of real-time data to control devices, fiscal printers, or taxing authorities – are expected to be commonplace, improving tax collection and addressing shortfalls.

How to tackle the challenge

These initiatives are affecting operators across the globe and will require a highly-secure platform that is capable of talking to systems in the cloud and on-premises and can be easily adapted to upgrade functionality and plug in new technologies to address rapidly evolving policies.

Oracle Hospitality Fiscal Layer Integration Platform (FLIP) can be and installed as a separate service, and loosely bound to Oracle’s core OPERA offerings. FLIP is agnostic to OPERA releases, assuming data has already been captured. FLIP is designed to quickly adapt to escalating legislative mandates while minimizing impact on operations.

What makes FLIP powerful

FLIP is an accredited and authenticated secure data bridge architected to transfer information between OPERA (OPERA 5 and OPERA Cloud) and our fiscal partner systems – whether they’re on-premises devices (such as fiscal printers, control units, audit devices, or fiscal integration partners) or through direct connections to government authorities.

This next-gen fiscal integration platform provides flexibility and scalability, helping hoteliers meet increasingly complex regulatory demands mandated by local legislation. FLIP won’t provide tax savings, but it’ll certainly deliver relief by easing regulatory compliance.

FLIP benefits:

  • Provides real-time information between OPERA and our partners with transactional business events (BE Gateway) and electronic invoicing (Fiscal Adaptor)
  • Adapts to different technology and methodologies of fiscal partners and devices
  • Communicates directly with governments, tax authorities, and/or fiscal partners – depending on accreditation needs
  • Deploys locally on the property, enabling collaboration with local hardware, smart printers, tax control units, etc., and potentially running offline and transmitting data as needed
  • Auto-updates, communicating directly with MOS (My Oracle Support) for latest releases
  • Functions agnostically, ensuring compatibility with OPERA 5, OPERA Hosted, and OPERA Cloud

 

Oracle Hospitality brings over 40 years of experience in providing technology solutions to independent hoteliers, global and regional chains, gaming, and cruise lines. Our cloud-based, mobile-enabled solutions for property management, point-of-sale, distribution, and reporting and analytics lower IT costs and maximize business agility. Oracle Hospitality’s OPERA is recognized globally as the leading property management platform and offers open APIs to serve as a platform for industry innovation. Learn more at www.oracle.com/Hospitality. Get specific product information as quick as clicking right here.

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