Booking.com - To claim Vat or not to claim Vat

Booking.com

Didn't find your answer?

Hi 

For my client.  I have disallowed Vat for Hotels when it is charged to the business credit card stating  Booking.com.    I notified the client of this vat issue and that the booking.com had no vat.   

They then arranged going forward that they get a vat invoice from the original hotel when they go and stay.   What concerns me is though that the charge from the credit card says Booking.com and not the name of the Hotel who gave me the vat bill.    Can I claim vat if that is the case? 

I think not because it is booking.com that you are paying.  My head is going around in circles.   Like others in the industry say once you have the vat receipt from the hotel you are okay to claim vat.   

 

Replies (15)

Please login or register to join the discussion.

Putting all dots together
By Link
05th Dec 2016 17:45

I know of a small hotel client – who generates most of business via Booking.com; all income is recorded as VAT inclusive and VAT is reported to HMRC on income;

Now if I think of other side – if your client stayed at this hotel and booked it via booking.com, Hotel will pay VAT on income generated; Booking.com has nothing to do with UK VAT BUT your client can’t claim VAT on this booking?
Wouldn’t it be right thing to do to claim VAT if your client has receipt from hotel?

Thanks (1)
Replying to Link:
Sarah Douglas - HouseTree Business Ltd
By sarah douglas
05th Dec 2016 18:29

Yes, this is the first return where they now have invoices from the actual hotel. My concern was that is was booking.com that the credit card is paying and not the actual hotel. Thank you for replying.

Thanks (0)
Routemaster image
By tom123
05th Dec 2016 18:34

Now - This is with a strong caveat that I only use this for my own staff (factory service engineers). Pragmatically, I claim VAT wherever I can establish the destination will be VAT registered - ie not a small B&B type place.

I make best efforts to then ask for a separate VAT invoice from the venue if required - but am comfortable we have incurred the VAT.

I consider the booking.com thing to be a bit like a credit card statement - ie the means of payment only.

Not sure I would be quite so laissez faire if I was advising others - but am reasonably happy I get the balance right in my case.

Thanks (3)
By cheekychappy
05th Dec 2016 19:12

You shouldn't have disallowed the VAT. The T&C's on their website states:

"By making a reservation through Booking.com, you enter into a direct (legally binding) contractual relationship with the Supplier with which you make a reservation or purchase a product or service (as applicable)."

Therefore the supply is made by the hotel. You can therefore recover the VAT stated on the VAT invoice from the hotel.

Thanks (1)
Sarah Douglas - HouseTree Business Ltd
By sarah douglas
05th Dec 2016 21:50

They still had to have a vat invoice which they did not get in the past hence why the vat was not claimed . and they only starting using them last vat return . But yes they have contacted some hotels to see if they can get them now . So just completing the next return now. When you google you get very different views from accountants about this issue .

Thanks (3)
All Paul Accountants in Leeds
By paulinleeds
07th Dec 2016 11:32

As already mentioned by 'cheekychappy', you need to look at the contractual parties; you and the VAT registered hotel.

Booking.com is just the agent i.e. collects the money. They are not the supplier.

Yes, you should obtain a VAT invoice. But if you know that the hotel is VAT registered then practically I'd claim the VAT, though VAT laws says that you should get a VAT invoice too.

Thanks (3)
avatar
By JDBENJAMIN
07th Dec 2016 14:28

The reality about VAT invoices for online orders is that clients seldom obtain them. Where that happens, I try and determine whether the supplier was VAT registered, and if so claim the VAT if it appears to be for a VATable supply. What the credit card payment says is irrelevant, as that is merely the means of payment, not the actual supplier of the end service.

Thanks (1)
avatar
By bumpdinkwhallop
07th Dec 2016 22:19

Claim the bloody vat. The service is provided by the hotel not the booking agent.

If its on the bank statement and no vat invoice then i would still claim it. I would also robustly explain to the client the strong probability of it being disallowed under compliance review without the said vat invoice.

It shouldnt take a great deal of trouble to go back to the hotels and get missing vat invoices from them anyway!!

Dont forget its not you that is claiming the vat its your client. Your only completing a vat return on their behalf!!

Cheeky is a total [***] tho so dont listen to a word he says

Thanks (0)
Sarah Douglas - HouseTree Business Ltd
By sarah douglas
08th Dec 2016 14:36

Hi

Just a quick thanks to everyone who responded.

Kind Regards
Sarah Douglas

Thanks (0)
avatar
By Julie57
24th Jan 2020 12:17

I know this is an old discussion. But I would just like to point out that it is not easy to get a VAT invoice from a hotel. My client just had an instance where Holiday Inn refused to supply an invoice as it was booked through b=booking.com.

I'd like to know what HMRC has to say about companies who refuse to supply a VAT invoice.

Thanks (0)
Replying to Julie57:
avatar
By Catherine Howard
11th Aug 2023 10:47

This is our problem too. We have holiday let. When customers ask for a VAT receipt Booking.com say they wont issue one, but we cant either as the transaction is not with us - the customer and the payment are done strictly through Booking .com. We do not received their booking, we dont invoice the customer and we dont receive any payment from them so how do we issue a VAT receipt? yrs Linda

Thanks (0)
avatar
By Catherine Howard
10th Aug 2023 10:00

We are struggling with Booking.com. Our holiday lets are booked through same. They take the booking and receive the payment from the customer. From that payment they deduct their commission and their payment fee 15% and pay us the balance after 10 days. They are not VAT registered in the UK. In short the money received is not from our customer and we dont invoice them.
We were informed when submitting our last set of accounts that our normal method of cash accounting and deducting Vat on the money received was wrong and we are required to self invoice for the full amount with the customers name and reverse charge this on the VAT return. so we are ending up paying VAT on the full amount billed to the customer and also the commission deducted by Booking.com which we didnt invoice and havent received.
We called HMRC who said that as Booking.com was a service platform this was correct, but it seems to me that we provide the service for Booking.com rather than the other way around.
Normal hotels and booking.com users seem to use the method we used to use. ie pay out VAT on income received.
Can anybody unscramble this for us. It just doesnt seem right to reverse charge this. If it is surely Vistaprint, shopify and even Zettle should be charged the same way?

Thanks (0)
Replying to Catherine Howard:
Routemaster image
By tom123
10th Aug 2023 10:37

Hi Catherine,
You may want to start a fresh thread if you don't get answers today.
The way Aweb works is that, if you post on an old thread, it soon drops out of the list owing to it's age.

Thanks (0)
Replying to Catherine Howard:
By SteveHa
10th Aug 2023 11:26

Are booking.com taking 15% commission of the total payment, or the VAT exclusive amount? If of the total, then they are charging commission of 18%, not 15%.

Thanks (0)
Replying to SteveHa:
avatar
By Catherine Howard
11th Aug 2023 10:49

They charge on the total - so you are right! Thank you for your reply..

Thanks (0)