Hotels.com and VAT reclaim

Woza14

I use hotels.com quite regularly for booking my hotels around the UK and Europe. As we are now VAT registered I am trying to claim back the VAT on these stays in the UK. Problem is hotels.com do not charge vat and if I book and pay through hotels.com I cannot get an invoice/receipt from the hotel I have stayed in? Has anyone else come across the same issue? I assume the way around it is to pay for the hotel on check out?

glentoran99

Woza14 wrote: »

I use hotels.com quite regularly for booking my hotels around the UK and Europe. As we are now VAT registered I am trying to claim back the VAT on these stays in the UK. Problem is hotels.com do not charge vat and if I book and pay through hotels.com I cannot get an invoice/receipt from the hotel I have stayed in? Has anyone else come across the same issue? I assume the way around it is to pay for the hotel on check out?

If they dont charge VAT then what would you be reclaiming?

JasonLVC

Hotels.com is an agent, it doesn't sell hotel rooms, it just points you in the right direction and handles the money side of things on behalf of the customer and the hotel.

Have a read of this article http://www.taxation.co.uk/taxation/Articles/2013/07/10/310371/hotel-roundabout it is a bit of a mind blower, but if hotel.com say they are not issuing VAT invoices, then this would indicate the contract is between you and the hotel and so the hotel should issue the receipt for payment.

If the hotel refuse then ask them why it is, presumably if you cancel the hotel room the hotel would still charge you so if the hotel still charge you, then this would indicate to me that the hotel is the supplier, not hotel.com

To be honest, provided you have a booking receipt from hotel.com and the value of the booking is les than £250 then you can treat the receipt/email as a simplified VAT invoice and recover the VAT. Just make sure the booking is in the name of XYZ Ltd rather than your own name, just to stop HMRC getting confused between a personal hotel trip and a business one.

Woza14

glentoran99 wrote: »

If they dont charge VAT then what would you be reclaiming?

Because VAT is chargeable, hotels.com would have paid it on my behalf.
I am trying reclaim that portion of the bill.

Woza14

JasonLVC wrote: »

Hotels.com is an agent, it doesn't sell hotel rooms, it just points you in the right direction and handles the money side of things on behalf of the customer and the hotel.

Have a read of this article
If the hotel refuse then ask them why it is, presumably if you cancel the hotel room the hotel would still charge you so if the hotel still charge you, then this would indicate to me that the hotel is the supplier, not hotel.com

To be honest, provided you have a booking receipt from hotel.com and the value of the booking is les than £250 then you can treat the receipt/email as a simplified VAT invoice and recover the VAT. Just make sure the booking is in the name of XYZ Ltd rather than your own name, just to stop HMRC getting confused between a personal hotel trip and a business one.

Thanks for the response.


I have asked both hotels for the VAT receipt, but neither will provide as they see the bill payer (hotels.com) as the customer and not me in this transaction.

InsideInsurance

Presumably you have just breached the turnover required for becoming VAT registered. Presumably you have looked into if traditional or flat rate VAT is better for your business based on the company expenses/

chancesare_2

Firstly Hotels.com are a booking agent.

Secondly they are based in the US.

zagfles

Use booking.com, then you pay the hotel and so will get a receipt off the hotel.

racchy1

I've had the same problem. I note some posters are effectively saying 'what do you expect?' and others are offering other advice so I thought I'd add my own findings.

Firstly, the refusal to give a VAT invoice doesn't apply to all chains. I've booked through Hotels.com for two different hotels on consecutive weeks and got a VAT receipt unasked for at one and a refusal at the other. This causes confusion.

Secondly, if you need a VAT receipt either for your own business or to claim back from a client and you visit HMR&C then you'll find they say that 'someone' - either Hotels.com or the hotel - are legally obliged to provide you with one. It shouldn't matter if it's a US based company or not - that's not your problem. Having said that, you may find that neither side will concede it's their problem either!

Re: JasonLVC's comment. Very true, of course but I'm sure you'll find you only need to stay away for about three nights during a business week for the invoice to tip over £250.

Of course, you could book direct as someone on the Forum suggest, but if you want a deal this isn't always the best way of doing it and if you don't need a deal - as happens with me, I'm self-employed and the client pays for the room - then you'll probably have your own perks. One is go to Hotels.com (Booking.com or whoever) through Quidco and you get cashback. You also get a star for every nights stay if you book through Hotels.com so If you work away a lot this can pay for your annual holiday! (one reason for using them rather than Bookings.com incidentally!)

I always groan when I don't get a VAT invoice as it means more work. My solution is ask for an official letterhead from the hotel and print my own and pin it to the non-VAT receipt that you can print off from Hotels.com. This is always good enough for charging the client and I've never had it queried through the company books either.

I'd agree it's a huge pain though and gives me extra work I'd rather not do for something that one or other of them should provide.

williamhart001

racchy1 wrote: »

I've had the same problem. I note some posters are effectively saying 'what do you expect?' and others are offering other advice so I thought I'd add my own findings.

Firstly, the refusal to give a VAT invoice doesn't apply to all chains. I've booked through Hotels.com for two different hotels on consecutive weeks and got a VAT receipt unasked for at one and a refusal at the other. This causes confusion.

Secondly, if you need a VAT receipt either for your own business or to claim back from a client and you visit HMR&C then you'll find they say that 'someone' - either Hotels.com or the hotel - are legally obliged to provide you with one. It shouldn't matter if it's a US based company or not - that's not your problem. Having said that, you may find that neither side will concede it's their problem either!

Re: JasonLVC's comment. Very true, of course but I'm sure you'll find you only need to stay away for about three nights during a business week for the invoice to tip over £250.

Of course, you could book direct as someone on the Forum suggest, but if you want a deal this isn't always the best way of doing it and if you don't need a deal - as happens with me, I'm self-employed and the client pays for the room - then you'll probably have your own perks. One is go to Hotels.com (Booking.com or whoever) through Quidco and you get cashback. You also get a star for every nights stay if you book through Hotels.com so If you work away a lot this can pay for your annual holiday! (one reason for using them rather than Bookings.com incidentally!)

I always groan when I don't get a VAT invoice as it means more work. My solution is ask for an official letterhead from the hotel and print my own and pin it to the non-VAT receipt that you can print off from Hotels.com. This is always good enough for charging the client and I've never had it queried through the company books either.

I'd agree it's a huge pain though and gives me extra work I'd rather not do for something that one or other of them should provide.

I've experienced a similar problem. Is it legal and acceptable to print your own VAT receipt on the letter headed paper from the hotel?

peterc2

Basically hotels.com are a con. You think you're getting a good deal but what's happening is that because they are a US company the hotels do not charge them VAT, then they can sell the rooms at an inflated price, basically the VAT element.

If you are VAT registered do not use hotels.com as you cannot reclaim the VAT from them. You're better off booking through a UK agent or the hotel direct and then reclaim the VAT. If you do reclaim VAT from a hotels.com booking/invoice then HMRC will require you to repay that amount.