Airbnb VAT

K

Kingbuyer

Registered User
Messages
8
Am I obliged to charge 9% VAT on top of any fee I get once I go over €37,500? My accountant told me this today. Does Airbnb not charge VAT to guests already?

Thanks guys
 
ah ok its the Irish hospitality rate. I must be able to claim vat back then through Airbnb for the bookings then. Sorry Im still new to this but just want to have everything in other with the revenue.
 
If the Ernst & Young tax advice which was on the Airbnb website is correct then you do not have to charge VAT. As there is no VAT on a residential letting.

See here

https://www.askaboutmoney.com/threads/airbnb-tax-question.204764/#post-1527072

It is in my opinion, and it seems your accountant agrees with me, that E&Y are wrong. Airbnb income generally is Schedule D income and as such subject to VAT. If your turnover is expected to go over €37,500 you must register for VAT.

Your turnover is not just what you receive from Airbnb it includes the Airbnb fee, the 3%, which they have already deducted from the money they pay you.

You must then account to Revenue for 8.25688 % (that is 9% of the net) of this gross as VAT on sales, you can deduct any VAT on inputs, which include the Airbnb Fee.

Airbnb provide all the information you need, except any costs you have had yourself obviously.
 

I always thought that the #37,500 threshold = turnover minus any VAT that you may have paid to third parties for goods and services; so for example if turnover = €40,000 but you paid VAT of €4,000 on airbnb fees, gas, electricity, etc, then your turnover for VAT threshold purposes would be reduced to €36,000 meaning you would not be liable to charge/pay VAT. Am I wrong?
 
The E&Y report says that Airbnb income is residential letting. There is no VAT on residential letting, so it does not matter what the VAT threshold is as residential letting is not subject to VAT.

I am arguing that E&Y are wrong and Airbnb income is trading income and so the threshold test does apply.
 
Last edited:
You must log in or register to reply here.
Menu
Log in
Register