VAT when acting as an agent

Sam6035 · ‎12-07-2023

Hi Everyone,

I am currently acting as an agent and letting out an airbnb, this means that a portion of the income I take is not actually revenue but is for a third party. Because of this, despite my turnover being high (and meeting the VAT threshold) I feel as though the money which is paid to the third party should not be counted towards this figure. Is that right?

Thanks

Sam

Mike-And-Jane0 · ‎12-07-2023

@Sam6035 You need a tax expert but the answer depends on whether you are, in law, an Agent or a Principle. Airbnb is classed as an Agent (only charges VAT on its fees) but I suspect you may be a Principal. It all depends on your contract and what you actually do. There is tonnes of info on line on this rather complex subject. Just be aware if you get it wrong then there are big fines and even jail terms waiting for you.

Helen3 · ‎12-07-2023

Did you not set up the listing under the hosts profile and have them add you as the cohost ? @Sam6035

If you did then you should just be taxed on your cohost payment .