What do I do when the guest requests an invoice?

[Camelia0]

Hello. 

I recently had the situation in which a guests requested an invoice. I have told to ask for the invoice directly to Airbnb, but he told me that Airbnb issues the invoices only for its commission and that for the rest of the amount I (the host) should be the one issuing an invoice. 

Which doesn't seem right. As Airbnb is the one cashing in the money and then making the payment towards the host.

Could please somebody explain me how the invoicing system works? What should I reply to my guest?

Thank you.

Camelia.

[Noel56]

I wanted to understand how Airbnb are getting around not charging VAT in the Phillipines for the total cost. This would be the same in most other countries. They only appear to charge VAT on their service fee. 

From what I am guessing is the way they avoid charging VAT on the total proce is that they only invoice for the service fee and expect the host to invoice and if required charge VAT on everything apart from the service fee.

Why would they be doing it this way? I am assuming to keep the cost down for the guests as much as possible e.g. almost 12% less. How all the funds can go through their account and not have to collect VAT on it I don't know. The major hotel booking chains appear to have to charge VAT.

[Effrosyni0]

Hello everybody. 
I have the same issue with AirBnB. I created a business account and I arranged a business trip and when it was about time to ask for my invoice of the total amount they told me to get the receipt and add my business details. But this is not call INVOICE and there are the invoice details of Airbnb. They still issue an invoice only of their fee. 
They should know that in many countries in order to claim the expenses you need invoies and NOT receipts and they should inform the customer in advance! It's very crucial for small businesses. 
Does anyone know if this legal? 

[David126]

An invoice is a request for payment, a recept is well a receipt for payment.

I have always submitted receipts. Maybe the invoice with it if it was more detailed.

[Gabriel408]

Hi All,

I was really digging into this past days (because I was curious how I should receive money as a business from Airbnb) and I came to this - Airbnb is just a provider of accomodation services (as e.g. Uber is provider of driving) including also PAYMENT SYSTEM (check your airbnb travel receipts and you find a section: Payment processed by: Airbnb Payments UK Ltd.) - and that is the main thing here.

What they really do as a business is that they are charging fees for providing certain services to hosts and guests and exchanging the money between them. They DO NOT act as the property owner so they don't have a right to issue any ivoice for accomodation (as a host) - just the one for "Base service fee".

Recently there were huge discussions about these services in Slovakia because many of hosts don't pay taxes. That is easily possible because (again) Airbnb just provides a (accomodation) service from host to guest and they don't care who the host is from the law point of view. So you can register as a private entity (create a personal account) and receive money and say nothing about it to anybody (easy money, no taxes).

If you want to legally do a hosting at least in Slovakia (but I believe in all EU contries) you have to be tax registered (VAT) and put each income from hosting to your accounting with issues invoice - and this invoice will be issued by YOU = HOST.

What could they do is provide an invoicing system which would place put the HOST on the supplier part and GUEST on the consumer part. However, there are different invoice requirements in different countries - e.g. in Slovakia, we also need to have an invoice number which needs to be a sequence. So in case I do the HOSTing and Airbnb provides invoicing system a conflict in invoice numbers may easily happen.

There is a page (unfortunatelly written in Slovak language) where accountants tells how to do a proper accounting with Airbnb rentals. In case of business entities you need to put the Airbnb fee (issued by invoice from Airbnb) into the liabilities part of your accounting (as a cost) and the income from renting (the price of rent cleaned from any fees) issued by HOST (you) to your liabilities part as an income.

Above explained would mean that in case you want to do Airbnb hosting legally - as a HOST you are the one issuing the invoices for users, but just the rent price (excluding Airbnb fees).

In case you are a guest traveling on a business trip, you put 2 invoices to your business expenses - one is the Airbnb invoice with "Base service fee" and another one is ISSUED BY HOST for renting the place.

[Slavomír0]

l still don't get it: how could I get a proper invoice from this amazing company?? We have a company / business account. I can see a list of past trips. When I click on one traveller and then "Get receipt" I can get a receipt with all billing details (it even allows me to edit the details). Fine. Then I click on another traveller (actually, myself) and same "Get receipt" but it only shows me a totally different receipt without company's billing details = completely unuseful for our accountance.

Sorry but AirBnB must be joking. Hey you company, how can we get a PROPER INVOICE for our business? 

[Burak21]

Hello Slavomir;

I have the same problem in here. While I am be able to edit the invoice details in one of my previous trips, I can't make any changing for other ones. This might be beacuse of some policy changes of AirBnB later some certain date? 

If you could solve your problem, I will be so happy to hear that. 

Thanks in advance. 

Burak K. 

[Dimitar27]

This is absolutely the same in all EU countries.

Once you get your personal or company VAT code from your local tax administration, check it in the EC/ VIES site. If it's active, you can add this number to your ABB account. ABB will stop adding VAT over the service fee. But you have to calculate and pay this VAT in your country.

It works very simple.

[Emma-and-József0]

I think this is the right answer.

(The Hungarian Tax Authority also confirmed this standpoint.)

So here are my assumptions:

Key information in this topic:

https://www.airbnb.co.uk/about/company-details

In my case Airbnb has a:

website providing entity, that issues the commission invoices:

Airbnb Ireland UC, private unlimited company

8 Hanover Quay

Dublin 2, D02 DP23, Ireland

and a payment providing entity, that provides the payment service for the Hosts, (like a POS Terminal provider):

Airbnb Payments Luxembourg S.A.

4, rue Henri Schnadt

L-2530 Luxembourg

Airbnb is only entitled to issue invoices after its commissions (Airbnb Ireland UC, private unlimited company), but not for the actual accommodation service providing fee itself, there Airbnb only acts as a payment service provider for the Host (Airbnb Payments Luxembourg S.A.) just as @Gabriel408 said.

The process briefly with so called: Split-free pricing*:

- Guests pay the full amount to Airbnb, card is charged by Airbnb Payments Luxembourg S.A..

- Guest and Host commissions go to Airbnb Ireland UC, the remainder amount goes to the Host from Airbnb Payments Luxembourg S.A. (via Payoneer etc.)

- Airbnb issues for the Guest a half invoice (Airbnb Ireland UC) and a half “payment certificate” (Airbnb Payments Luxembourg S.A.). 

(!!!) (And this is the reason why this “invoice” is super confusing, since it is a half payment certificate… -.-)

- Airbnb Payments Luxembourg S.A. sends the remainder amount to the Host, the Host issues an invoice to the Guest about the accommodation service providing fee, that fee also includes Airbnb’s Host commission amount (!).

- Airbnb Ireland UC issues an invoice to the Host about the Host commission, with this invoice the Host can deduct this amount from His revenue as an expense. (Also VAT reimbursement, but I don’t want to overcomplicate it. XD)

It’s that simple. XD

Thus again, in reality 3 invoices will be issued in the process:

• From Airbnb Ireland UC to the Guest about the Guest commission.
• From the Host to the Guest about the accommodation service providing fee, that fee also includes Airbnb Ireland UC’s Host commission amount (!).
• From Airbnb Ireland UC to the Host about the Host commission, with this invoice the Host can deduct this amount from His revenue as an expense. (Also VAT reimbursement, but I don’t want to overcomplicate it. XD)

And again the reason why the “invoice” that Airbnb (Airbnb Ireland UC + Airbnb Payments Luxembourg S.A.) issues is super confusing, is because that “invoice” is a half “payment certificate”.

That is why both the website providing, Airbnb Ireland UC, and the payment providing entity, Airbnb Payments Luxembourg S.A. are on it.
Hence the footnote:
“Airbnb Payments Luxembourg SA ("Airbnb Payments") is a limited collection agent of your Host. This means that upon your payment of the Total Fees to Airbnb Payments, your payment obligation to your Host is satisfied.”

Thus we can state, that the invoicing process doesn’t always follow the payment process directly.

If there are payment collection agents included in the process, these agents will not be issued any invoices by the Hosts.

Another great example to better understand, when a Host would use a POS Terminal to receive payments that is operated by a commercial bank, Guests would use the POS Terminal to pay, thus the payment service of the commercial bank would be used (just like Airbnb Payments Luxembourg S.A.), but You as a Host would not issue an invoice to the commercial bank, but to the Guest.

Unfortunately Airbnb does a terrible job explaining this, and neither their customer support team - who usually I am barely able to understand due to strong accents, (of course They don't have Hungarian speaking agents, phone number etc., which is already a shame, taking into consideration how many listings are there in Hungary...) - knows this pretty good...

Extra information and fun facts:

What makes it even more vague, that in fact the Guests are able to download a so called "invoice" from trips page - where They can actually add invoicing details later ???, I mean how legal is that, changing invoice details after the invoice is issued. XDXD Jess, man. Very professional.

How Payoneer Inc. (https://www.payoneer.com/) as Airbnb’s payment service provider, which Hosts receive Their amounts from comes into this picture? 

Please just don’t ask.

Difference between receipt and invoice:

- Receipt: No buyer details on it, usually issued for private persons.

- Invoice: Buyer details on it, good for cost deduction, VAT reimbursement etc. 

*please refer to:
https://www.airbnb.co.uk/account-settings/payments/service-fee

Now They even have:
“Simplified pricing: Airbnb will deduct 15% from each payout. Guests won’t be charged a service fee – the price you set is the price guests get.”

Which is maybe even a terrible choice since as far as I know Airbnb is not even able to issue a proper commission invoice for the Hosts. XDXDXD
I called Them, answer: “We don’t have that option.” XDXDXD
Airbnb Ireland UC, private unlimited company

8 Hanover Quay

Dublin 2, D02 DP23

Ireland

Very professional, thank You. 🙂

[Emma-and-József0 · Accepted solution]

(The Hungarian Tax Authority also confirmed this standpoint.)

So here are my assumptions:

Key information in this topic:

https://www.airbnb.co.uk/about/company-details

In my case Airbnb has a:

website providing entity, that issues the commission invoices:

Airbnb Ireland UC, private unlimited company

8 Hanover Quay

Dublin 2, D02 DP23, Ireland

and a payment providing entity, that provides the payment service for the Hosts, (like a POS Terminal provider):

Airbnb Payments Luxembourg S.A.

4, rue Henri Schnadt

L-2530 Luxembourg

Airbnb is only entitled to issue invoices after its commissions (Airbnb Ireland UC, private unlimited company), but not for the actual accommodation service providing fee itself, there Airbnb only acts as a payment service provider for the Host (Airbnb Payments Luxembourg S.A.).

The process briefly with so called: Split-free pricing*:

• Guests pay the full amount to Airbnb, card is charged by Airbnb Payments Luxembourg S.A..
• Guest and Host commissions go to Airbnb Ireland UC, the remainder amount goes to the Host from Airbnb Payments Luxembourg S.A. (via Payoneer etc.)
• Airbnb issues for the Guest a half invoice (Airbnb Ireland UC) and a half “payment certificate” (Airbnb Payments Luxembourg S.A.). (!!!) (And this is the reason why this “invoice” is super confusing, since it is a half payment certificate… -.-)
• Airbnb Payments Luxembourg S.A. sends the remainder amount to the Host, the Host issues an invoice to the Guest about the accommodation service providing fee, that fee also includes Airbnb’s Host commission amount (!).
• Airbnb Ireland UC issues an invoice to the Host about the Host commission, with this invoice the Host can deduct this amount from His revenue as an expense. (Also VAT reimbursement, but I don’t want to overcomplicate it. XD)

It’s that simple. XD

Thus again, in reality 3 invoices will be issued in the process:

• From Airbnb Ireland UC to the Guest about the Guest commission.
• From the Host to the Guest about the accommodation service providing fee, that fee also includes Airbnb Ireland UC’s Host commission amount (!).
• From Airbnb Ireland UC to the Host about the Host commission, with this invoice the Host can deduct this amount from His revenue as an expense. (Also VAT reimbursement, but I don’t want to overcomplicate it. XD)

And again the reason why the “invoice” that Airbnb (Airbnb Ireland UC + Airbnb Payments Luxembourg S.A.) issues is super confusing, is because that “invoice” is a half “payment certificate”.

That is why both the website providing, Airbnb Ireland UC, and the payment providing entity, Airbnb Payments Luxembourg S.A. are on it.
Hence the footnote:
“Airbnb Payments Luxembourg SA ("Airbnb Payments") is a limited collection agent of your Host. This means that upon your payment of the Total Fees to Airbnb Payments, your payment obligation to your Host is satisfied.”

Thus we can state, that the invoicing process doesn’t always follow the payment process directly.

If there are payment collection agents included in the process, these agents will not be issued any invoices by the Hosts.

Another great example to better understand, when a Host would use a POS Terminal to receive payments that is operated by a commercial bank, Guests would use the POS Terminal to pay, thus the payment service of the commercial bank would be used (just like Airbnb Payments Luxembourg S.A.), but You as a Host would not issue an invoice to the commercial bank, but to the Guest.

Unfortunately Airbnb does a terrible job explaining this, and neither their customer support team - who usually I am barely able to understand due to strong accents, (of course They don't have Hungarian speaking agents, phone number etc., which is already a shame, taking into consideration how many listings are there in Hungary...) - knows this pretty good...

Extra information and fun facts:

What makes it even more vague, that in fact the Guests are able to download a so called "invoice" from trips page - where They can actually add invoicing details later ???, I mean how legal is that, changing invoice details after the invoice is issued. XDXD Jess, man. Very professional.

How Payoneer Inc. (https://www.payoneer.com/) as Airbnb’s payment service provider, which Hosts receive Their amounts from comes into this picture? 

Please just don’t ask.

Difference between receipt and invoice:

• Receipt: No buyer details on it, usually issued for private persons.
• Invoice: Buyer details on it, good for cost deduction, VAT reimbursement etc. 

*please refer to:
https://www.airbnb.co.uk/account-settings/payments/service-fee

Now They even have:
“Simplified pricing: Airbnb will deduct 15% from each payout. Guests won’t be charged a service fee – the price you set is the price guests get.”

Which is maybe even a terrible choice since as far as I know Airbnb is not even able to issue a proper commission invoice for the Hosts. XDXDXD
I called Them, answer: “We don’t have that option.” XDXDXD
Airbnb Ireland UC, private unlimited company

8 Hanover Quay

Dublin 2, D02 DP23

Ireland

Very professional, thank You. 🙂

[Wojciech31]

So AirBnB is cheaper than hotels because at the end tax is paid only from 15% (airbnb commision) of the whole amount. (as 95% of properties listed on airbnb is privately held).

[Chris-And-Ida0]

Yeah, that is correct.

The problem is Airbnb doesn't seem to have a clue about economics. What they call a guest "receipt" is of no value, it's just a paper showing what you paid useful only for personal reference; nothing more. In their actual VAT invoice they only include their fees, which means the rest has to be issued by the host to the guest, not to Airbnb.

Until now I was issuing invoices to Airbnb. But it seems I was wrong. I need to issue invoices to my guests. Thank you for the explanation.

[Timucin-Çağlan0]

There are two different incomes happening here:

1- Airbnb's income , which is essentially their commission which they invoice to the host and guest.

2-Hosts income , which is the ammount host received after airbnb's commission is deducted.

A guest has to receive two invoices to be able to claim taxes or claim reimbursement from their companies if they were traveling for work. One from airbnb for the service fee and one from the host for actual accommodation fee. 

Yes , hosts needs to be able to issue invoices and actually pay income taxes / vats for their income.

[Karol22]

This has happened for me many times. It's not a problem. Just remind the guest that they can download their itinerary (which is their invoice) directly from the Airbnb website. It's never been a problem for me after stating that. 

[David8879]

Just wondering if AirBNB came up with the way for hosts to see detailed breakdown of AirBNB fees as "fees + VAT on electronic service" that they obligated to pay in EU and a lot of other countries