How to calculate and pay VAT on Booking commission - a step-by-step guide
For many years, this obligation of all private renters passed "under the radar", but from September 2023. The Tax Administration has initiated enhanced controls and VAT collection for the past 5 years. Here we will not quote all the legal and by-laws that define the obligation to calculate and pay VAT, but we will answer some basic questions and show how to calculate and pay VAT.
Who is obliged to calculate and pay VAT?
VAT is required to be calculated and paid by every private renter who advertises his accommodation on Booking.com.
Before you start advertising on the Booking.com platform, you must obtain a VAT number, which you can also do through the e-citizen system. See an example of the completed Form p-pdv.pdf. It is a Request for registration for value added tax purposes.
Who is not obliged to calculate and pay VAT?
Private renters who do not have an ad on Booking.com and who do business exclusively with domestic travel agencies like Home Rent.
How to calculate VAT?
Booking will send you an invoice for its services once a month. Your obligation to calculate VAT is by the 20th of the month for the previous month. Log in to the e-tax office through the e-citizen system. Below is a detailed guide on how to calculate and fill in VAT (PDV) and VAT-S (PDV-S) forms in the e-visitor system.
Step 1 - open the e-tax page and log in via the e-citizen system - shown in picture no.1
Step 2- when you enter the e-tax, click on Submit form - shown in picture no.2
Step 3 - then click on the VAT form - shown in picture no.3
Step 4 - click to fill out the form - shown in picture no. 4
Step 5 - select the period for which you are sending the application. Other data will be filled in - shown in picture no. 5
Step 6 - enter the amounts marked with red dots in the pictures. The amount of 500.00 euros is the amount of the Booking invoice, while 125.00 euros is the amount of VAT. - shown in pictures no. 6, 7 and 8.
Step 7 - after filling out the form click on "Check". The form will be automatically checked and a display will appear in red letters if there are errors that need to be corrected. If everything is ok, the form is ready to be sent. - shown in picture no. 9
Step 8 - submit the form by clicking "Send". When you send the form, you are done with the VAT form and you can print it and save it. You will also receive a confirmation that the form has been duly received. - shown in picture no. 10
Step 9 - after you have successfully submitted the VAT form, return to the home page and click on the VAT-S form - shown in picture no.11
Step 10 - click on fill out the form - shown in picture no. 12
Step 11 - select the application period. It should correspond to the period of the VAT form you sent earlier - shown in picture no.13
Step 12 - select the country code NL - shown in picture no. 14
Step 13 - Enter the OIB you have on your Booking account and then enter the amount of the account, for example 500 eur - marked with red dots - shown in picture no. 15
Step 14 - save the document and then click on "Check" - shown in picture no. 16
Step 15 - submit the form by clicking "Send". When you send the form, you are done with the VAT-S form and you can print it and save it. You will also receive a confirmation that the form has been duly received - shown in picture no. 17
Step 16 - after all the forms have been properly submitted, the balance of the VAT debt will appear in your tax accounting card. In PKK you can also see other obligations that you need to pay. Return to the home page and click on PKK - shown in picture no.18
Step 17 - when you enter PKK, you have an overview of all debits and payments. To generate payment slips to pay the reported VAT, click on "enter/select" and select VAT and then click on "Generate payment data". Make the payment and soon the payment and all financial obligations will be visible in your PKK card. In the same way, you can pay and monitor the information for the tourist membership fee and flat income tax - shown in picture no. 19
We hope that our guide has made it easier for you to register and calculate VAT on the Booking commission, and if you want to advertise villas in Croatia through a local travel agency, please contact us. Home Rent offers you the possibility of flexible cooperation with secure payment and transparent business. For more information about renting, see our blog Croatia in style.