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Vat in South Africa

Hi 

Can any one tell me what works for the VAT on a Booking.com invoice how do we work out what we can claim as VAT Vendors. Can we get our VAT no on Booking.com invoices?

Any help on this would be appreciated.

Carl Olivier

Leighwood Lodge

Johannesburg


8
Aaltje B.

Do you know Maria, about VAT in S.A.?

And Carl, your property looks amazing!

Your hospitality skills are great! Interior cozy and clean.

Your photo's are giving a good impression. Some are a bit dark. you can change photo's in free and simple editing program via Pixlr.

Close up also help to get a good idea of how something looks, and draw people in.

Otherwise, ask someone to help you with it. It really does the trick.

Wishing you many more wonderful guests.

Greetings

Aaltje B.

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Sameastwood

Thanks for the comments and advise Aaltje. Do you have contact details for Maria as I do need so advice.

Thanks Carl

8
Aaltje B.

Hi Maria or Katrinka, would you be able to answer the question of Carl, please. If you can't you may know someone else in the forum you think knows the answer,

Greetings

Aaltje B.

1
Inyati Game Lodge

Due to South Africa's VAT regulations Booking.com now have to pay VAT. Check your April invoice. Ours had the total commission payable and then they added VAT to the amount. This is incorrect as our rates and our commissions include the 15% VAT

New VAT regulations for electronic services to take effect in April 2019

Foreign intermediaries that facilitate the supply of electronic services (on behalf of the foreign service provider) and who are responsible for invoicing and collecting payment for the electronic services, are also required to register for VAT. In essence, where a foreign service provider uses an intermediary (i.e. a Platform) to supply services to customers located in South Africa, and the Platform is responsible for issuing the invoice and collecting the payment in respect of the supply of the services, the Platform is “deemed” to be the provider of the electronic services. It is the Platform and not the foreign service provider that would be liable to register as a VAT vendor in South Africa.

1
Inyati Game Lodge

I finally got a “usable” answer from Booking.com. Please see below

-TAX-

Dear Partner,

Greetings from booking.com.

We have received your query on the VAT amount charged on your invoice

Kindly note that this is a requirement of the South African government to charge VAT to all partners receiving online services regardless of their status or revenues

This was effected for all reservations from 1st April as per regulations

The relevant provisions in relation to this can be found in Value-Added Tax Act 89 of 1991 (the VAT Act1 ) in Government Notice 429 of 18 March 2019 (Updated Regulations).

Commission pricing is different from the VAT charges being introduced. Commission is charged with respect to our GDTs . Refer :Clause 2.3.2

We are required to comply with the regulations and thus the charge on your invoice. Our Tax registration number with TRN prefix can be found on your invoice.

Kindly as well note the below;

a. The tax you input on your guest price is independent to us i.e we do not get any service from the price you input and this is an additional levy on your guest meaning whether you worked with Booking.com or not, you would be required to pay the taxes to SARS (This is also called Input VAT)

b. The VAT we levy you is a result of the service you receive from Booking.com meaning this is only payable if a property works with Booking.com and we are needed to remit this to the government. (This is also called Output VAT)

In effect if you speak with a tax expert, you should be able to get advise on how to balance theses 2 items and either claim the amount from SARS or offset it.

Please let us know if you have any other queries.

Regards

Credit Control Team