Registering for VAT

[Aus1330]

I've recently just registered for VAT in Ireland as I am required to do so as I'm overseas. 

My property is managed by a management company who are great at getting guests but nothing else. They're invoicing is a mess. 

Anyway, I get money into my account, I can usually calculate the Airbnb fees, but know I'm trying to figure out the VAT component. 

So say if the booking is 1000$, 13.5% of that is VAT that the guest now pays. 

So the Airbnb fees would now be a % of the $881.06. Is this correct ? 

I have had to backdate the VAT to the 1st of July, as Airbnb has been calculating the fees on the full 1000$ can this be refunded/amended. 

I've tried the Airbnb chat, it wasn't very helpful, kind goes around in a circle. 

[Helen3]

Ask your managing agents it's part of what you're paying your service fee for ? If their invoicing is a mess get another management company x

do you not have access to the back end of your listing to access your payment info? 

[Aus1330]

Yea but it's been fully booked all year. And regardless of what they say I'll be liable for the tax so I need to be sure. 

But again nobody can answer my question even in Airbnb, a tax accountant will ask for a Vat invoice. Which won't tell me what Airbnb do with their fees. 

[Mike-And-Jane0]

@Aus1330 To get Airbnb to charge correctly you need to put the VAT number and possibly the amount into the tax section of your listing (or account). You may need pro tools switched on to be able to do this.

[Aus1330]

Thanks, I don't have access to this. 

What should happen basically when someone is registered for vat. Price stays the same 

Guest pays 1000

Airbnb charges 15% of 1000

Payout 1000-(150+VAT23%)

Now registered for VAT

Guest pays 1000

13.5% is now vat. 

Airbnb charges 15% of $881(1000-13.5% VAT) = 132

Payout 1000-(132+VAT23%)

Then I pay the 13.5%VAT of 1000 to the Government. 

Or

Guest pays 1000

13.5% is now vat. 

Airbnb charges 15% of $881(1000-13.5% VAT) = 132

Payout 1000-(132) Doesn't charge me the 23%VAT. 

Then I pay the 13.5%VAT of 1000 to the Government minus the Airbnb 23% Vat on the service fee. 

Or 

Guest pays 1000

Airbnb charges 15% of 1000 so I get 850$

Then I pay the 13.5% Vat on $1000

[Mike-And-Jane0]

@Aus1330 except that is not how VAT works when you are registered for it.

It should work as 

Price = 1000 (this is before VAT)

Guest pays 1000+VAT = 1135

Airbnb Payout 1000-(132+VAT23%)

Where the host VAT goes I don't know - presumably to the host so they can pay their VAT bill.

I have used your percentages as I do not know the Irish VAT rates. Also have you talked to an accountant as I have never heard of needing to register for VAT just because you don't live in the country.

[Aus1330]

You become a non established trader with trading income when living overseas. Makes you required to register for VAT regardless of turnover in Ireland. 

I had the guest paying the same in all scenarios 1000, I consume the vat and don't pass it on to the guest. 

I think I may get screwd by Airbnb and the Management company who will charge their service fees on the VAT component also. If it's not properly set up. 

[Mike-And-Jane0 · Accepted solution]

@Aus1330 if you look in your account (not the listing) there are 10 boxes one of which is tax. click on this and you will see where to put your VAT number.

If it doesn't exist then switch on pro tools (another of the 10 boxes) first.