Forum

• # 122217
• Mon 12 Sep 2022 11:31 AM

Hi all

Has anyone come across VAT charged on AirBnB management charges?

I am not sure that my (VAT registered) client can reclaim it as the AiRBnB invoice seems to have an Irish VAT reg number. But it also says on it ‘UK VAT 20%’!

AirBnB website only says

"If you are registered for VAT …..you may not be charged VAT on Airbnb service fees but you may be required to declare VAT on your VAT filing”

I think this means the Reverse Charge mechanism would then apply and otherwise therefore the ‘VAT’ is NOT reclaimable.

My client naturally wishes to reclaim but I would like to be sure.

Thanks all

Peter R

• Peter

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• # 122235
• Sat 01 Oct 2022 07:16 AM

Hi Peter,

Not quite sure why this caught my attention this morning, but this is from Airbnb website:

https://www.airbnb.co.uk/help/article/436/value-added-tax-vat-and-how-it-applies-to-you

It looks like your client will need to put in their VAT number to the Airbnb system.  Then they won't be charged the VAT element, but would have to put it on their return as a reverse charge transaction.  Unfortunately, this would probably need to be before the transaction occurs.  This seems to be something clients often don't catch on to when buying from the EU/elsewhere.

Does that make sense?

Fiona

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• # 122245
• Wed 12 Oct 2022 12:12 PM

Thanks Fiona - that is enormously helpful.

Peter

• Peter

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