Commission charged on Value Added Tax
Booking.com are applying unfair practices for partners who are registered vendors for Value Added tax. As a VAT registered vendor and accordance with the South African VAT laws invoices issued are inclusive of VAT at 15%. A partner is required to register for VAT if annual turnover exceeds R 1,000,000. The VAT portion of the booking is not our money and we collect it as agents of the revenue authorities. It you are on an 18% commission structure the net effect is that you are paying 20,6%. This puts you at a distinct disadvantage to non VAT registered partners. As bigger businesses who generate more commission we should not be disadvantaged by their commission policies.