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Just found are charging Commission on VAT !!!

I have been with for a couple of years, and whilst I thought the 15% commission charged on room rate was a bit high for a small business, I went with it and on the whole have been pretty happy with them, to the extent I have referred them to several other Bed & Breakfasts who also signed up.

We have recently expanded and I was in the process of reviewing some financial stuff and find that they are charging 15% on the VAT element as well !  So in Spain where VAT is 10% I am paying an effective 16.5% commission, guys in the UK where the VAT is 20% will be paying an eye watering 18% of their booking value !

I consider this extremely sharp practice, when we came onboard a big deal was made about it was 15% of my booking income,   VAT is not income ! It is money owed to the relevant government in whatever area you reside.

Can it be legal to charge commission on VAT ??   



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BrookAve 2 years ago




Accomodation VAT Rate  is not the same as a general Country  VAT Rate.

As for charging commission against the VAT total, it does seem a bit , well, lets call it unethical.


I would be interested to see what others think of it.







Kind Regards



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Ruzizi Tented Lodge 2 years ago

I was looking for information on how to avoid paying commission on VAT also, paying commission on money we don't recieve is tough for a small business. Do you have any further information on this?