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Service Split for Germany (VAT Regulation Changes)

Applies to German properties offering fixed-price or all-inclusive food & beverage services. Effective from 1 January 2026

Overview

Due to changes in German VAT regulations, meals and beverages must be taxed and invoiced separately.

To support this requirement, SabeeApp introduces a service split feature that automatically divides selected services into meal and beverage components with the correct VAT rates.

If you operate a German property and sell services such as buffet breakfast, half board, or other fixed-price F&B offers, you may need to update your service setup.

Quick Guide: What Do I Need to Do?

You need to take action if:

  • Your property is located in Germany, and
  • You sell fixed-price or all-inclusive services that include both meals and beverages

No action is required if:

  • Your property is not in Germany, or
  • Meals and beverages are already sold as separate services, or
  • The service does not include beverages

Required Setup (3 Steps)

Step 1: Check Service Categories

Go to Settings → Service Categories.

  • Default SabeeApp categories are already eligible for splitting:

    • Breakfast
    • Lunch
    • Dinner
    • Appetizers
    • Minibar
    • Other
  • For custom categories (that you have created):
    • Open the Service Category and Enable “Services under this category eligible for splitting”
    • This can be changed by users with service category permissions

      For custom categories (that you have created):

Step 2: Enable Split on Relevant Services

Go to Settings → Services and open the service that includes both meals and beverages.

  • Enable “Split service folio item”
  • Save the service

Once enabled, the service will always be split when added to a reservation, regardless of whether it is added:

  • Manually
  • Via Booking Engine
  • Via Channel Manager
  • Via any other integration

Step 3: Verify the Result

  • Add the service to a test reservation
  • Open the Reservation and check the Serives and Folio section
  • You should see two separate line items:
    • Meal (7% VAT)
    • Beverage (19% VAT)

In the Services:

In the Folio:

Legal Background (Germany)

From 1 January 2026, German VAT rules require:

  • Meals → 7% VAT
  • Beverages → 19% VAT
  • Meals and beverages must appear separately on invoices

Simplified Flat-Rate Split

For fixed-price or all-inclusive offers (e.g. buffet breakfast), German tax authorities allow a simplified allocation:

  • 70% → Meals (7% VAT)
  • 30% → Beverages (19% VAT)

SabeeApp applies this split automatically for selected services.

How the Split Works

Price Allocation (Current Scope)

This feature currently supports a fixed setup for Germany:

  • 70% of the service price → Meal (7% VAT)
  • 30% of the service price → Beverage (19% VAT)

All net, VAT, and gross values are calculated according to the property’s tax model.

Technical Behaviour

Before the Service Is Added to a Reservation

  • The service exists as one single item
  • No split is visible in:
    • Booking Engine
    • Channel data
    • Settings → Service list

When the Service Is Added to a Reservation

  • The service is automatically split into two linked service items
  • The split appears in:
    • The service list
    • The folio

Linked Item Rules

  • The two items:
    • Can be invoiced separately if needed
    • Cannot be deleted separately
      • They must always be deleted together
      • If one item has already been invoiced, deletion is blocked until the invoice is voided

Reporting Behaviour

Operational Reports

Examples: F&B Planning, meal counts

  • The service is treated as one single item
  • Operational quantities remain unchanged

Financial Reports

  • The service appears as two separate line items
  • VAT is shown correctly:
    • 7% for meals
    • 19% for beverages

Summary

To comply with German VAT regulations effective from 1 January 2026, German properties offering fixed-price F&B services must:

  1. Ensure service categories are eligible for splitting
  2. Enable Split service folio item on relevant services
  3. Verify invoices show separate meal and beverage items

Once configured, the process is fully automatic and requires no further manual action.

⚠️ Can’t find the toggle “Services under this category eligible for splitting”? in the Service Category settings? Contact your SabeeApp account manager to have this option enabled for your property.