VAT on commission invoices in Spain: FAQs

Updated 2 weeks ago | 8 min read time
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If you have a VAT number that’s valid for EU transactions, but you haven’t yet provided it to us, please do so by 30 April 2024. You can find out how to do that below.

 

In line with European Union (EU) regulations, we’re changing the way Spanish VAT is applied to the commission invoices we send to accommodation partners in Spain (excluding partners based in the Canary Islands, Ceuta and Melilla). We’re keen to provide you with as much information as possible to support you and help you understand what you need to do next. In this article you’ll find some of the most important information about these changes, as well as answers to common questions. 


 

 

What’s changing and how it affects you

  • From 1 June 2024, in accordance with Article 18.2 of the EU Regulation No 282/2011, we’ll apply VAT to commission invoices we send to accommodation partners in Spain who haven’t provided us with a VAT number that’s valid for EU transactions.

    If we do apply VAT, we’ll pay it to the Spanish tax authorities in full. This doesn’t impact any VAT charged to guests on the price of their stay at a property – it only concerns the commission invoices we send to accommodation partners.

    This change will not affect you if you are based in the Canary Islands, Ceuta and Melilla.

  • As an accommodation partner in Spain (excluding the Canary Islands, Ceuta and Melilla), one of these scenarios will apply to you and your property:

    • If you provide us with a VAT number that’s valid for EU transactions, we won’t apply VAT to the commission invoices we send you. Instead, you’ll remain responsible for reporting any VAT you might owe to the Spanish tax authorities yourself.
    • If you don’t provide us with a VAT number, or if you provide us with a VAT number that’s not valid for EU transactions, we’ll apply 21% VAT to commission invoices that we send you from 1 June 2024. We’ll pay this VAT to the Spanish tax authorities in full.
    • If you don’t provide us with a VAT number and you’re using Payments by Booking.com with weekly or monthly net bank transfer payouts, we’ll deduct the commission, payment charge and VAT (calculated at 21% of the commission amount and payment charge) from the amount we transfer to you from 1 May 2024. This will be reflected on your commission invoice issued in June 2024.

    If you need to update your VAT details with us, take a look at section 2 of this article to find out how to do this.

What you need to do

  • You don’t need to take any action. We won't apply VAT to the commission invoices we send you.

  • Please provide us with a VAT number that’s valid for EU transactions by 30 April 2024. Here’s how:

    1. Sign in to the extranet.
    2. Click on Finance.
    3. Click on VAT Details, or click on Finance settingsVAT details and then Edit details.
    4. Select Yes to confirm that your VAT number is valid for EU transactions.
    5. Enter your VAT number.
    6. Click on Save.
  • We’re aware that you may previously have provided us with a VAT number and told us that it’s not valid for EU transactions, when in fact it is. If that’s the case, please also update this information by following the steps above, so that we don’t have to apply VAT to the commission invoices that we send you from 1 June 2024.

Understanding VAT, the VIES and VAT numbers that are valid for EU transactions

  • VAT is short for value-added tax. A VAT number is a number that identifies an individual entrepreneur or legal entity performing a business activity and registered for the purposes of VAT. In Spain, the VAT number format is ES + 9 digits (first and last can be letters) i.e. ES X12345678 or ES 12345678X.

  • For your VAT number to be considered valid for EU transactions, it needs to be validated in the European Commission’s VAT Information Exchange System (VIES). After you provide us with your VAT number, we’ll check whether it can be validated in the VIES.

  • The VIES is a European Commission search engine that can be used to check whether a VAT number is valid for EU transactions. Once you provide us with your VAT number, we’ll use the VIES to check whether it can be validated.

  • Yes, you can do this using the VIES search engine on the EU’s website.

  • If you don’t provide us with a VAT number, or if you provide us with a VAT number that’s not valid for EU transactions, we’ll apply 21% VAT to commission invoices that we send you from 1 June 2024. You’ll need to pay the total amount of each invoice – the commission amount and the VAT amount – to us. We’ll pay the VAT to the Spanish tax authorities in full. This change will not affect you if you are based in Canary Islands, Ceuta and Melilla.

    If you’re using Payments by Booking.com with weekly or monthly net bank transfer payouts and you don’t provide us with a VAT number that’s valid for EU transactions, we’ll deduct the commission, payment charge and VAT (calculated at 21% of the commission amount and payment charge) from the amount we transfer to you from 1 May 2024. This will be reflected on your commission invoice issued in June 2024.

  • If you have a Spanish Tax ID Number that is not valid for EU transactions, you can apply for a Spanish VAT Number (valid for EU transactions) by following the instructions of the Spanish Tax Authorities webpage regarding the Inclusion in the Registry of Intra-Community Operators (ROI).

  • As of 1 June 2024, we’ll start applying VAT to commission invoices we send to accommodation partners in Spain (excluding the Canary Islands, Ceuta and Melilla)  who haven’t provided us with a VAT number that’s valid for EU transactions. Those invoices will cover reservations where guests checked out in May 2024.

  • After 1 June 2024, if you receive a commission invoice from us that includes VAT but you believe that you’ve provided us with a VAT number that’s valid for EU transactions, please check in the extranet to make sure you’ve provided all the information we need. To do this, follow the instructions in section 2 of this article.

    Please also check that your VAT number was valid for EU transactions at the time of the reservation for which we’ve applied VAT to the commission fee. If it was, we’re sorry for any inconvenience and we’ll be happy to correct this by crediting the incorrect commission invoice and issuing a correct invoice without VAT. To ask us to do this, please dispute the original invoice by following the instructions in this article within three months of the date of the relevant reservation.

  • When you provide us with your VAT information in the extranet, we’ll ask you whether you’re registered for VAT purposes in Spain (with a VAT number that’s valid for EU transactions) or if you’re registered for VAT in Spain but your VAT number isn’t valid for EU transactions. In either case, we’ll also ask you for your VAT number.

  • Yes, if you’re not registered for VAT for EU transactions then the VAT applied to the commission invoices we send you is unfortunately likely to be an additional cost for you. We won’t benefit from the VAT that’s applied to your invoices.

  • Once you obtain a VAT number that’s valid for EU transactions, please provide us with it by following the instructions in section 2 of this article. Until then, we’ll continue to apply VAT to the commission invoices we send you. Once you provide us with your VAT number that’s valid for EU transactions, we’ll stop applying VAT to commission invoices we send you as soon as possible.

Other questions you might have

  • You’ll find our VAT number on the commission invoices we send you.

  • You can read more information on the One Stop Shop scheme that we’ve used to pay VAT in Spain. You can find out more about VAT regulations in Spain on the Spanish tax authorities’ website. There’s also information about EU Regulation No 282/2011.

  • Yes, we’ll apply VAT to our commission invoices where required in accordance with EU Regulation No 282/2011 and we’ll pay the VAT charged and collected from the Partners to the Spanish authorities via our EU VAT registration (so-called One-Stop-Shop “OSS” registration).

    Keep in mind that Booking.com is a Dutch company, and our EU VAT registration is separate from our obligations to pay other taxes in the Netherlands.

  • If you’re based in the Canary Islands, Ceuta or Melilla, Spanish VAT is not applicable to our services and we will continue to send you commission invoices without VAT. However, you’ll remain responsible for reporting any other Indirect Tax in these regions (such as IGIC or IPSI) you might owe to the tax authorities yourself.

  • If you are using Payments by Booking.com with net bank transfer payouts, and you don’t have a VAT number that’s valid for EU transactions, we’ll deduct the commission, payment charge and VAT (calculated at 21% of the commission amount and payment charge) from the amount we transfer to you. This will be reflected on your commission invoice. This change will not affect you if you are based in the Canary Islands, Ceuta and Melilla.

  • If you have further questions about your tax obligations, we recommend that you contact your tax advisor or accountant. Unfortunately, we can’t provide advice about your or your property’s specific tax obligations.

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