In this article, you will learn about tax invoices, including when and how you can issue a tax invoice to your guests.
Who is liable for issuing a tax invoice to the guest, Agoda or the property?
As a platform, Agoda only facilitates the online booking reservations for your property and charges a commission for this service. As such, Agoda cannot offer an invoice to a booker for the accommodation services offered by you. Thus, any local requirement to provide a tax invoice at the sell rate remains your responsibility.
Do I need to issue a tax invoice to every guest?
Properties located in all countries except the US, Mainland China, and Taiwan are liable to issue a tax invoice to guests. A tax invoice can be issued either on paper or by email (or both).
What information is required when issuing a tax invoice to a guest?
- Hotel name
- Guest’s full name
- Amount exclusive of GST (Good and Services Tax)/VAT (Value Added Tax)
- Total Amount: Reference Sell Rate (All-inclusive amount incl. tax & fees) *
* Please refer to the Agoda property voucher for the Reference Sell Rate
Sample of a tax invoice
The below sample is for illustrative purpose only; please do not use this template. The exact tax invoice template will depend on the VAT/GST laws of the country where your property is located.
The law and regulations in different countries and areas may vary. If your property has a special status, please reach out to Agoda Accommodation Support via the “Need Help” in YCS.
For any Agoda Collect reservation, Agoda collects the payment from the bookers on your behalf and remits the remaining amount to you after charging Agoda’s service fees. This payment collection flow does not impact the business setup or general invoicing flow.
As such under your local law, you will remain responsible for issuing the invoice for your accommodation services to the booker (at the sell rate). Agoda will send its commission statement to you for services provided.
You provide the accommodation service directly to the guest; hence any invoice for the accommodation services rendered should still be issued under your property name.
As you render accommodation services at the final sell rate directly to the guest, any (tax) invoice should also reflect this sales price. It doesn’t matter whether you have loaded a net room rate (to be marked up to a sell room rate towards the guest by Agoda’s systems) or loaded a sell room rate directly onto the Agoda platform.
Furthermore, where Agoda collects the funds from the guest on your behalf, we will first charge the fee for our reservation facilitation services before paying out the remaining (net rate) amount to you. The fact that we have settled the cost for our services prior to pay out does not alter the sales price of your accommodation services to the guest, which remains at the sell rate.
Agoda facilitates the online booking reservations for your property and charges a commission for this service. Agoda supports collection of the payment amount from guests on your behalf; we charge this fee (our commission) before paying out the remainder of the payment to you. Irrespective of this payment flow, your sale to the booker remains at the (Reference) Sell amount.
Note that the payment flow does not dictate or change the (commission) business model under which we have agreed to operate. If your current bookkeeping for whatever reason does not support the tax reporting of our services to you as a cost, as well as your supply to the guest (at the sell rate) as an earning, we strongly recommend you make all necessary corrections within your system. As Agoda’s business model is set up in accordance with a commission model, we cannot legally support operating under another business model.
Agoda cannot provide any tax or legal advice. Note that while there is no requirement for Agoda to charge VAT on its services (commission), it is in many countries still a requirement that hotels report and self-assess VAT on Agoda’s services which may, depending on the hotels tax position, be reclaimable. As the exact requirements are highly dependent on your jurisdiction and tax position, we strongly recommend you discuss the specifics with your local (tax) advisor or accountant.