Vat Belgium

[Sila115]

Hello,

We are a company that needs to record our earnings from Airbnb. Could you please explain how you handle this process? My accountant suggests issuing an invoice to Airbnb and deducting an additional 6% for VAT from the received amount. I find this a bit odd, as we already pay VAT through Airbnb. How exactly do you manage this?

For your information, we are based in Belgium.

Thank you in advance for your assistance.

Best regards,

[Mike-And-Jane0]

@Sila115 Unless you have provided a VAT number to Airbnb then the only VAT they will charge is that on their commission (typically 15% + VAT). If however you have provided a VAT number and put the correct VAT percentage in your taxes then I agree that your accountant's suggestion is a bit odd.

While I am here you have a listing that says it is a room in a shared house and yet the listing is for 3 bedrooms. There is no availability so I assume you are fixing this.

[Sila115]

Yes I have add my VAT. Thx for your feedback. 

[Shelley159]

Hi @Sila115 

I am not in Belguim, but the system should work the same for you. You can click on any booking and directly under the Host Payout section you will see a clickable VAT invoice. This is your Airbnb-issued VAT invoice for tax purposes. I also find your accountant's suggestion odd, but perhaps you are their first client who is an Airbnb host! 😀 

[Sila115]

I think so too. But how do you record your profit in that case? He asked me to create an invoice for Airbnb. Is that correct? Presumably, this would be without VAT.

[Shelley159]

Hi @Sila115 

You receive your pay-outs net of Airbnb's host fee: you don't pay Airbnb as they have already kept their share and paid out your share to you. This is recorded on the system-generated VAT invoice. As you have mentioned in reply to @Mike-And-Jane0 , your VAT number is captured on the system. I think you could perhaps download one or two invoices from guest bookings and send these on to the accountant so that they can see the standard system-generated invoice.

[Mike-And-Jane0]

@Shelley159 Your tax system in South Africa is, no doubt, different to ours in the UK but here we need to declare the gross Airbnb earnings and then put the Airbnb fees as an expense that is tax deductible. You get to the same net profit but crucially the earnings are higher which means you are more likely to get hit by the VAT threshold.

[Elena4354]

Hello @Sila115, I am in Portugal and I think we have the same system.

I can explain to you how I do it. According to our tax department requirements, I issue an invoice for each guest (not for Airbnb), because you provide the accommodation service to the guest.

The invoice amount is the total cost of the reservation (including Airbnb service fee).

Please do not mix the VAT that is added to the Airbnb service fee with the VAT that you pay as a service provider. In Portugal, whether you need to pay VAT depends on your annual income. After a certain amount of income, you must pay VAT, and it is 6% for this business in Portugal.

So I add 6% VAT to each invoice I issue to guests (I use the method where 6% VAT is included in the total cost of the reservation).

I think you need to consult with your accountant or financial advisor to get detailed instructions.

Kind regards. 

Elena. 

[Paula]

Thank you for sharing this @Elena4354.

@Sila115, please let us know if you find out whether the VAT works in the same way in Portugal as it does in Belgium.

Keep us posted 😊