VAT update: moving to inclusive pricing (VAT 2.0)
⚠ PLEASE READ FIRST — IS THIS DOCUMENT FOR YOU?
This guide is only relevant if you previously used the old VAT feature (VAT 1.0) or had VAT enabled.
What changed, and why
Prices in PadelOS have always been meant to be the final amount the customer pays. Our first VAT feature — call it VAT 1.0 — didn't handle that correctly: when you enabled VAT, it added the VAT rate on top of the price you entered. So a €100 court at 9% VAT charged the customer €109.
To avoid overcharging, many clubs worked around this by entering a lower, VAT-excluded price — for example around €91.74 — so that adding 9% brought the customer's total back to roughly €100. It worked, but it meant the price you typed in was no longer the real price; it was a reverse-engineered figure.
We've now corrected this. In VAT 2.0, the price you set is inclusive of VAT: the customer pays exactly that price, and PadelOS calculates the VAT from inside it (the correct method). Nothing is added on top.
Using the same example: in VAT 2.0 you simply enter €100, the customer pays €100, and the €8.26 of VAT at 9% is contained within it.
Do you need to do anything?
You never enabled the VAT feature → No action needed. Your prices were always treated as the final price, and that hasn't changed.
You enabled VAT and lowered your prices to compensate → Yes — update your prices. They're currently set to VAT-excluded figures; you need to reset them to the full amount you want customers to pay.
You enabled VAT but never changed your prices (so customers were charged the extra on top) → your customers will now simply pay the price shown, with no extra added. Still worth reviewing each price to confirm it's the amount you actually want to charge.
Whatever your history, the one rule after the switch is simple: every price should be the exact amount you want the customer to pay, VAT included.
What to do
Go through all your prices — courts, training, events, memberships, and extras — and set each one to the final, VAT-inclusive price you want the customer to pay.
If you had reduced a price so the old add-on VAT would bring it back up, restore it to the real figure. For example, a court you lowered to around €91.74 should go back to €100. Under VAT 2.0, €100 is what the customer pays, and the €8.26 VAT is worked out from inside it.
Before / after — a €100 court at 9%:
| Price you enter | What the customer pays | Where the VAT is |
VAT 1.0 (old) | €91.74 | €100 (91.74 + 9% on top) | added on top |
VAT 2.0 (now) | €100 | €100 | contained inside the €100 |
How it works after you've updated
Once you're on VAT 2.0, turning VAT on no longer adds anything on top. The customer pays the price you set, and the receipt shows the VAT contained within it, calculated correctly. You set each price once — as the final figure — and PadelOS handles the rest.
To understand how VAT is calculated across prices, bookings, wallets and discounts once you're set up, see Understanding VAT in PadelOS — a guide for clubs.
This is general guidance, not tax advice. Confirm your rates and obligations with your accountant.