Results 1 to 2 of 2

Thread: VAT Charged by booking agency

  1. #1
    New Member
    Join Date
    Apr 2013
    Cape Town
    Thanked 0 Times in 0 Posts

    VAT Charged by booking agency

    Hello there,

    I recently booked some travel through an online booking service for work. I have asked them for tax invoices. They are a VAT vendor, so logically they must charge VAT on the bookings they make. They claim that it is up to the actual provider of the accommodation to provide a VAT invoice and if the provider is not registered, that is that.

    Is there a reason or loophole that a booking agency who is a VAT vendor should be allowed not to charge VAT to customers who booking accommodation and services through them?

    If this is the case, how do they collect VAT to hand over to SARS? From charging VAT on the commission they charge the establishments?

    This just seemed fishy to me, so I thought I would consult a more informed audience.

  2. #2
    Platinum Member Mike C's Avatar
    Join Date
    Apr 2012
    Thanked 288 Times in 248 Posts
    Hi in_the_cornfield.

    As I understand it, the Booking Agency charges you VAT on their service to you ... not on what VAT they are charged.

    So some of their providers may charge VAT and others not. They would work out the total cost of the package to you, and then add their service fee plus VAT on their service Fee.

    They have to hand over to SARS the VAT they they charge you. Their providers hand over VAT that they charged the booking agent (if any).
    An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't. - Anatole France

Similar Threads

  1. Booking Manager - Simonstown
    By HR Solutions in forum Local Ads on TFSA
    Replies: 0
    Last Post: 08-May-14, 12:22 PM
  2. VAT charged on salary between entities
    By J7J in forum Tax Forum
    Replies: 1
    Last Post: 16-Apr-14, 03:21 PM
  3. [Question] Interest charged for services and what i can do about not getting paid.
    By shaunvdp in forum General Business Forum
    Replies: 8
    Last Post: 14-Jul-12, 11:09 AM
  4. VAT - How and when should it be charged?
    By rfnel in forum General Business Forum
    Replies: 5
    Last Post: 17-Jun-11, 10:34 AM
  5. Seminar for men - limited booking
    By SilverNodashi in forum General Chat Forum
    Replies: 2
    Last Post: 21-Aug-08, 04:05 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts