- From 1 November 2023, TanzaniaBooking will apply VAT to commission invoices sent to accommodation partners in Tanzania who have not confirmed their VAT registration and provided their VAT number and certificate.
- Accommodation partners who are VAT registered and provide their VAT details will not have VAT applied to their commission invoices. They will be responsible for reporting any VAT owed to the Tanzanian tax authorities themselves.
- Accommodation partners who are not registered for VAT or do not provide their VAT details will have 18% VAT applied to their commission invoices, which will be paid to the Tanzanian tax authorities by TanzaniaBooking.
- Accommodation partners need to provide a copy of their VAT registration certificate once they are VAT registered.
- If accommodation partners do not provide their VAT details, they will need to pay the total amount of each invoice, including the commission amount and VAT, to TanzaniaBooking.
- VAT will be applied to commission invoices starting from November 2023 for reservations where guests checked out in October 2023.
- If accommodation partners believe they have provided their VAT details but still receive a commission invoice with VAT, they can dispute the invoice and request a correction.
- VAT on commission invoices is an additional cost for accommodation partners who are not registered for VAT.
- If accommodation partners obtain VAT registration after 1 November 2023, they need to provide their VAT details to stop VAT being applied to commission invoices.
- If accommodation partners have a VAT registration but were unable to provide the information to TanzaniaBooking in time, they can still provide the information later and have the VAT corrected through credit invoices, provided they can prove their VAT registration for the applicable period.
Source: partner.booking.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
