(The Hungarian Tax Authority also confirmed this standpoint.)
So here are my assumptions:
Key information in this topic:
https://www.airbnb.co.uk/about/company-details
In my case Airbnb has a:
website providing entity, that issues the commission invoices:
Airbnb Ireland UC, private unlimited company
8 Hanover Quay
Dublin 2, D02 DP23, Ireland
and a payment providing entity, that provides the payment service for the Hosts, (like a POS Terminal provider):
Airbnb Payments Luxembourg S.A.
4, rue Henri Schnadt
L-2530 Luxembourg
Airbnb is only entitled to issue invoices after its commissions (Airbnb Ireland UC, private unlimited company), but not for the actual accommodation service providing fee itself, there Airbnb only acts as a payment service provider for the Host (Airbnb Payments Luxembourg S.A.).
The process briefly with so called: Split-free pricing*:
- Guests pay the full amount to Airbnb, card is charged by Airbnb Payments Luxembourg S.A..
- Guest and Host commissions go to Airbnb Ireland UC, the remainder amount goes to the Host from Airbnb Payments Luxembourg S.A. (via Payoneer etc.)
- Airbnb issues for the Guest a half invoice (Airbnb Ireland UC) and a half “payment certificate” (Airbnb Payments Luxembourg S.A.). (!!!) (And this is the reason why this “invoice” is super confusing, since it is a half payment certificate… -.-)
- Airbnb Payments Luxembourg S.A. sends the remainder amount to the Host, the Host issues an invoice to the Guest about the accommodation service providing fee, that fee also includes Airbnb’s Host commission amount (!).
- Airbnb Ireland UC issues an invoice to the Host about the Host commission, with this invoice the Host can deduct this amount from His revenue as an expense. (Also VAT reimbursement, but I don’t want to overcomplicate it. XD)
It’s that simple. XD
Thus again, in reality 3 invoices will be issued in the process:
- From Airbnb Ireland UC to the Guest about the Guest commission.
- From the Host to the Guest about the accommodation service providing fee, that fee also includes Airbnb Ireland UC’s Host commission amount (!).
- From Airbnb Ireland UC to the Host about the Host commission, with this invoice the Host can deduct this amount from His revenue as an expense. (Also VAT reimbursement, but I don’t want to overcomplicate it. XD)
And again the reason why the “invoice” that Airbnb (Airbnb Ireland UC + Airbnb Payments Luxembourg S.A.) issues is super confusing, is because that “invoice” is a half “payment certificate”.
That is why both the website providing, Airbnb Ireland UC, and the payment providing entity, Airbnb Payments Luxembourg S.A. are on it.
Hence the footnote:
“Airbnb Payments Luxembourg SA ("Airbnb Payments") is a limited collection agent of your Host. This means that upon your payment of the Total Fees to Airbnb Payments, your payment obligation to your Host is satisfied.”
Thus we can state, that the invoicing process doesn’t always follow the payment process directly.
If there are payment collection agents included in the process, these agents will not be issued any invoices by the Hosts.
Another great example to better understand, when a Host would use a POS Terminal to receive payments that is operated by a commercial bank, Guests would use the POS Terminal to pay, thus the payment service of the commercial bank would be used (just like Airbnb Payments Luxembourg S.A.), but You as a Host would not issue an invoice to the commercial bank, but to the Guest.
Unfortunately Airbnb does a terrible job explaining this, and neither their customer support team - who usually I am barely able to understand due to strong accents, (of course They don't have Hungarian speaking agents, phone number etc., which is already a shame, taking into consideration how many listings are there in Hungary...) - knows this pretty good...
Extra information and fun facts:
What makes it even more vague, that in fact the Guests are able to download a so called "invoice" from trips page - where They can actually add invoicing details later ???, I mean how legal is that, changing invoice details after the invoice is issued. XDXD Jess, man. Very professional.
How Payoneer Inc. (https://www.payoneer.com/) as Airbnb’s payment service provider, which Hosts receive Their amounts from comes into this picture?
Please just don’t ask.
Difference between receipt and invoice:
- Receipt: No buyer details on it, usually issued for private persons.
- Invoice: Buyer details on it, good for cost deduction, VAT reimbursement etc.
*please refer to:
https://www.airbnb.co.uk/account-settings/payments/service-fee
Now They even have:
“Simplified pricing: Airbnb will deduct 15% from each payout. Guests won’t be charged a service fee – the price you set is the price guests get.”
Which is maybe even a terrible choice since as far as I know Airbnb is not even able to issue a proper commission invoice for the Hosts. XDXDXD
I called Them, answer: “We don’t have that option.” XDXDXD
Airbnb Ireland UC, private unlimited company
8 Hanover Quay
Dublin 2, D02 DP23
Ireland
Very professional, thank You. 🙂
József
