Just found booking.com are charging Commission on VAT !!!
I have been with Booking.com 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 ??