How to report booking.com income

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PortugalGuy
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How to report booking.com income

Post by PortugalGuy »

Just because this forum its the best place to learn...

i dont understand how should i declare the income i get from booking.com
so let's start
At the end of the month booking.com send me a file with my total profit less the comission for them
Now what?
Also, some guests ask me for the recipe. I got that paper from the official printing place, and i just write the name of the guests dates and final price and VAT...

Should the VAT goes to the overall price of the stay? Or just the price less the comission for booking.com?

Must say that... this is all to hard to understand!
Algarve Guy Renting houses
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CSE
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Post by CSE »

Here in Spain, charges made by any listing website (including Booking) is a deduction for running your business.
You do not earn anything from Booking do you? The guests pay you for the stay. They are the ones who should receive your factura (fatura).
Never try to out-stubborn your guests.
Hells Bells
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Post by Hells Bells »

Yes, booking.com does not take payment. The only exchange that takes place is one of you paying them the commission.
Entirelyidentifiable
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Post by Entirelyidentifiable »

I understand that it depends on whether your income is over 10k Euros and whether you are IVA registered/ liable to pay it. IF not ignore the VAT.

Report the amount after commission is subtracted. This is pretty much what my accountant told me.
PortugalGuy
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Post by PortugalGuy »

Entirelyidentifiable wrote:I understand that it depends on whether your income is over 10k Euros and whether you are IVA registered/ liable to pay it. IF not ignore the VAT.

Report the amount after commission is subtracted. This is pretty much what my accountant told me.
looks like im going to do that
Algarve Guy Renting houses
RichardHenshall
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Post by RichardHenshall »

My view would be that the fatura should be addressed to the person/organisation that pays you and that the fatura total (including IVA, if applicable) should be for the amount of money that that person/organisation has paid to you (as described by casasantoestevo).

However, I also think that the choice recommended by Entirelyidentifiable's accountant would be the more typical approach to tax compliance in Portugal (aside from the approach of those who are totally uncompliant), especially since the simplified regime incentivises under-declaration of income.
PortugalGuy
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Post by PortugalGuy »

One more question has come to my mind

So... lets go for the example
guest have to pay 100€
if booking takes 15€ for them
in my bill to the guest i should write 85€ if he's paying me 100€?

What a mess this is... not even my accountant knows how to answer this
Algarve Guy Renting houses
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Post by CSE »

PortugalGuy wrote:One more question has come to my mind

So... lets go for the example
guest have to pay 100€
if booking takes 15€ for them
in my bill to the guest i should write 85€ if he's paying me 100€?

What a mess this is... not even my accountant knows how to answer this
But the guest does not pay Booking. The guest pays you and you pay booking a percentage.
To use your example:
You charge 100€, the bill to the guest is the same. The guest pays you 100€.
Booking will charge you 15€ for which you receive a bill from them. You pay them 15€.
You are left with 85€
It is very clear and simple.

Just the same with any work. you are paid 100€ you bill the client.
You have costs for that work and that amounts to 15€ you pay the supplier that cost. The rest (85€) is for you as profit.
Never try to out-stubborn your guests.
RichardHenshall
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Post by RichardHenshall »

casasantoestevo wrote:... The rest (85€) is for you as profit.
I thought you knew this business well enough to know that the 85€ is most definitely not profit, just your turnover after one cost has been deducted. :)
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CSE
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Post by CSE »

Image
Never try to out-stubborn your guests.
PortugalGuy
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Post by PortugalGuy »

ok
that sounds correct if
(and correct me)
you have a business with "contabilidade organizada"organized accounting
On my case i'm with simplified accounting.
I can't deduct the comission to booking.com if i pass a bill to Mr XPTO with 100€, it will be 100€ that i'll put on my IRS
Algarve Guy Renting houses
RichardHenshall
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Post by RichardHenshall »

If you are in the simplified regime then 85% of your gross income is assumed to be used by your expenses, so your taxable profit is only 15% of your gross income and you pay an appropriate marginal rate of tax on, in your example, 15€ of 'profit'.

You can't deduct any specific costs, whether it's your IMI, insurance, maintenance or laundry - the commission you have to pay to booking.com is just yet another cost that comes out of your gross income. It doesn't matter whether your total expenses are 1% of your gross income :D or 99% of your gross income :cry: as you have chosen the simplified regime which fixes your tax liability.
PortugalGuy
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Post by PortugalGuy »

thanks :D
Algarve Guy Renting houses
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