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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 ??   

 

 

2 Replies
83 Views

10
BrookAve

 

Hi

 

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

 

 

Consider linking your Property link into your partner profile as it helps other partners assist you, especially when starting out .

 

How To Guide :

https://partner.booking.com/en-gb/community/tips-tricks-more/how-why-ad…

 


How To Contact Booking.com:

 

If  urgent,  call the dedicated phone number* found in your extranet Inboxtab. Under Booking.com Messages, Click on Contact us to reveal the phone number.  

For more general info you can contact one of our main lines for help.

 

Got a specific financial question?

Call the dedicated  phone number* found in the ‘Financial Overview’ section of the ‘Finance’ tab in your extranet.

Please note that our finance team is available during business hours, Monday to Friday only.

6 months ago
1
Ruzizi Tented Lodge

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?

5 months ago