Booking.com charging VAT

Sausagesinapan

Hi all, we've made several trips and booked accommodation via Booking.com
We are a business so have been trying to reclaim the VAT, but Booking.com say that they are just an intermediary and it is the responsibility of the property owners to provide VAT invoices.  When we contact the owners they say they are not registered for VAT! 

How can they be charging us VAT, and breaking this down as such on their website, if this is incorrect?  The customer services at Booking.com just stop me dead and say they cannot help!  Surely this is fraud and we should demand a refund?

Penguin_

So usually when I book with Booking.com, I pay on arrival at the hotel which would suggest they handle the VAT.

The company I work for advertised some cottages through Booking.com & they send us the booking info along with payments made by guests which we then raise sales invoices for which includes the VAT element.

Every booking on Booking.com, when you look at "my trips" says "The (Insert Hotel Name Here) handles all Payments". 

If there is a room on there from a non VAT registered business it will show as £120 total, if they're VAT registered it will show Net of £100, VAT £20 & Total £120.

I don't think it is fraud.

DullGreyGuy

When someone signs up their property to Booking.com they have to declare things like if they are VAT registered, if they say they are then Booking.com will add on VAT if they say they aren't then obviously they won't. 

If they aren't VAT registered then the business has set it up incorrectly and should refund the VAT and reissue a new invoice. The partial problem is that in some jurisdictions Book.com charge the business commissions on the VAT, I think that includes the UK, so if the accommodation was here then they'll have an argument with Booking.com on if they can reclaim the commission from the VAT aspect of the payment given their error.

Hoenir

All Booking.Com listings have the words "Includes taxes and charges".  Irrespective of whether it's a registered business for VAT or not. The only way of checking is within your "Bookings & Trips" . 

If you are using small establishments i.e. bed and breakfasts. Unlikely to exceed the £90k registration threshold. 

Grumpy_chap

Hoenir said:

If you are using small establishments i.e. bed and breakfasts. Unlikely to exceed the £90k registration threshold. 

In reality, that probably has to be hosts with three rooms or less.

Sausagesinapan

Thanks all.  Booking.com are notifying us that we are paying the VAT so will have to try and take it up with the property owners.  We have paid circa £1000 in unnecessary VAT so will have to try and get it refunded now.  Wish me luck!

Sausagesinapan

And the plot thickens....the property owner has sent me notification that they are registered on Booking.com as not registered for VAT.  What on earth are Booking.com up to?  Hopefully an IT glitch but....

martindow

Sausagesinapan said:

And the plot thickens....the property owner has sent me notification that they are registered on Booking.com as not registered for VAT.  What on earth are Booking.com up to?  Hopefully an IT glitch but....

It could be a glitch with booking.com or as suggested the property owner registering incorrectly and ticking a VAT box in error. 

Have you asked the owner to help sort this out for you?  If they are receiving VAT when not registered that could have serious repercussions, having to refund the VAT element plus penalties if that is what has been happening.  It is in their interests to make sure everything is correct.

lovemybike

It could also possibly be that the hotel made an error when listing their property and the default booking.com setting was to apply VAT. It does not mean that you have been charged extra - if the hotel set their rate at £100, if the listing was set up to include VAT then you will see a breakdown of the accommodation amount and the VAT amount, the total of which is £100.

The hotel just needs to correct their setting on the booking.com listing to state that VAT is not applicable. 

You are only hard-done by if you booked on the basis that the hotel was VAT registered and that you can claim back 20%