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Where Taxpayers and Advisers Meet

VAT on Hotel

Cap_Scarlet
Posts: 20
Joined: Sun Jun 17, 2018 2:59 pm

VAT on Hotel

Postby Cap_Scarlet » Fri Dec 07, 2018 3:48 pm

I have recently registered for VAT and have noticed that when I book a hotel via an online business (e.g. Anoma) as they are based in Spain they are saying the supply is exempt? Is this correct? If so then a) it is misleading and b) It means that effectively I am paying a 20% mark up.

Other than booking locally what is the solution?

robbob
Posts: 2769
Joined: Wed Aug 06, 2008 4:01 pm

Re: VAT on Hotel

Postby robbob » Fri Dec 07, 2018 4:18 pm

i would say pretty much any scenario is possible here with these "hotel type aggregators" or middlemen- and there definitely is the possibility that you could miss out on an allowable input vat reclaim by using one of these sites. All you need to do though is confirm the vat treatment with 100% certainty before you click the buy button then you wont be caught out - i could imagine this may be easier said than done with some of the operators. i think for some of the more dodgy ones you might have to ensure you request a vat invoice from the hotel when you turn up - the more sketchy the promise before booking in that regard the less i would recommend using that site.


Note to add insult to injury if you use Airbnb they may be charging you vat in error with regard to their fees if you don't proactively provide them with your vat number - similar systems may apply to other aggregators.

Note for firms like Airbnb always remember that if you provide your vat number and they don't then bill vat you are responsible for paying the vat they would have billed you had they been based in the uk - reverse charge rules. thankfully you will likely have a matching input vat claim in thst regard.

Cap_Scarlet
Posts: 20
Joined: Sun Jun 17, 2018 2:59 pm

Re: VAT on Hotel

Postby Cap_Scarlet » Fri Dec 07, 2018 4:58 pm

i would say pretty much any scenario is possible here with these "hotel type aggregators" or middlemen- and there definitely is the possibility that you could miss out on an allowable input vat reclaim by using one of these sites. All you need to do though is confirm the vat treatment with 100% certainty before you click the buy button then you wont be caught out - i could imagine this may be easier said than done with some of the operators. i think for some of the more dodgy ones you might have to ensure you request a vat invoice from the hotel when you turn up - the more sketchy the promise before booking in that regard the less i would recommend using that site.


Note to add insult to injury if you use Airbnb they may be charging you vat in error with regard to their fees if you don't proactively provide them with your vat number - similar systems may apply to other aggregators.

Note for firms like Airbnb always remember that if you provide your vat number and they don't then bill vat you are responsible for paying the vat they would have billed you had they been based in the uk - reverse charge rules. thankfully you will likely have a matching input vat claim in thst regard.
Thanks - this was an agent called Amoma who I've used in the past when I was not VAT registered and did not give it a second thought.

They are based in Spain and actually generally a lot cheaper than other agents - I now understand why!

robbob
Posts: 2769
Joined: Wed Aug 06, 2008 4:01 pm

Re: VAT on Hotel

Postby robbob » Fri Dec 07, 2018 5:09 pm

Hmmm looking at the website they say
How do I obtain a VAT invoice?
Our company is not subject to VAT.
https://www.amoma.com/en/support.php

Not exactly helpful - there is though always the chance you may be able to get a vat invoice from the htel when you turn up - so if you are struggling try and give them some grief when you are there.


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