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I
IvarM
August 21, 2020
Question

How do I account for VAT on Sales of Accommodation to AIRBNB

  • August 21, 2020
  • 1 reply
  • 0 views

I need some help with payments from Airbnb.

Airbnb recently (since lockdown) asked me if I was registered for VAT, which I am and so I entered my VAT number onto my account profile. Suddenly, unbeknownst to me, they then charged VAT on top of my normal base price for my rooms, when I have always accounted for it in my calculations. (I only found out when I gave a customer a bespoke price and he came back stating that the price had been inflated by Airbnb!) This has suddenly made my accommodation more expensive. 

 

However that is not the issue, the issue is I have no idea how to account for the VAT on my return as they are clearly collecting it on my behalf, and I assume, paying it onto HMRC? Do I account for this as a 0%ECS code? Any help would be gratefully received. Thanks

1 reply

S
SPOT3
September 20, 2020

I suggest recording each transaction in accordance with the actual amount of money paid and refunded. The amounts may not be what you had intended to charge, but nevertheless they have become factual historic transactions. Future transactions for refunds, if they happen, will be recorded accordingly, and hopefully everything will be resolved.

 

Airbnb would have passed to you the full amount, including VAT, paid by the guests (less their charges). They don't pay your VAT in their VAT accounting because Airbnb's income is mainly the platform fees they charge to guests plus VAT (so Airbnb's VAT is on their fees, not your rent).

 

For your accounting, revise the rental amounts to agree with what Airbnb had charged, including VAT (ignore your base cost and VAT). If you do agree to refund the guests directly, raise a credit note including VAT to agree with the amount refunded.

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