VAT on commision

by **ainaedil** on Tue Nov 15, 2011 10:52 am

Hi All

Is there any VAT on commision earned for hotel bookings.

Commision earner's website is affiliated with Expedia under EAN( affiliate program).

Thanks

by **Generix** on Tue Nov 15, 2011 12:06 pm

Assuming basic rule applies then it depends on who your customer is/where they are located.

by **ainaedil** on Tue Nov 15, 2011 3:37 pm

I believe customer is Expedia itself, and will be paying commision earner at month end.

Commision earner's website is rebranded version of expedia.

Payment from customers will go directly to expedia.

Thanks

by **Generix** on Tue Nov 15, 2011 4:05 pm

ainaedil wrote:I believe customer is Expedia itself, and will be paying commision earner at month end.

Commision earner's website is rebranded version of expedia.

Payment from customers will go directly to expedia.

Thanks

Well then it depends on whether it is being treated as an undisclosed agency/commissionaire structure.

Lets assume not for simplicities sake then you just apply the basic rule, which is the place of supply is where the customer is established.

by **ainaedil** on Thu Nov 17, 2011 2:41 pm

Generix you are right to assume that undisclosed agency/commissionaire structure applies.

Place of supply will be where the hotel is? in case of hotel booking charges or where customers address?

Many Thanks.

by **Kitty Kat** on Thu Nov 17, 2011 5:43 pm

ainaedil wrote:Generix you are right to assume that undisclosed agency/commissionaire structure applies.

Place of supply will be where the hotel is? in case of hotel booking charges or where customers address?

Many Thanks.

Generix can't come to the 'phone right now as he is away, but I believe it would be where Expedia is located. The alternative would be if it was classed as a transaction relating to land (a hotel after all!), but I don't think this is, I think it is the charging of commission by Expedia, what it is charged in respect of is irrelvant.

In short, if you are transacting with Expedia, the place of supply is where they are located. However perhaps someone will back me up/shoot me down as I can't say I'm 100%.

by **section 44** on Thu Nov 17, 2011 5:55 pm

Kitty Kat wrote:The alternative would be if it was classed as a transaction relating to land

It's not land for the purposes of the place of supply rules

by **Kitty Kat** on Fri Nov 18, 2011 10:07 am

section 44 wrote:
Kitty Kat wrote:The alternative would be if it was classed as a transaction relating to land

It's not land for the purposes of the place of supply rules

Fair enough, I suspected not but wasn't sure