Doing business with USA member states
in Business, Accounting & Taxes ·
So, a few days back, some small-time hosts—the kind who pay a flat tax and aren't part of the VAT system—got hit with a notice from Booking.com. Apparently, starting July 1st, they’re supposedly responsible for calculating and paying American VAT on those commission invoices sent over by Booking.com (and other foreign companies that don't have an American footprint). They mentioned that little guys who aren't currently in the VAT system can actually apply for limited VAT registration, which sounds like a total mystery because my local IRS office hasn't heard a single word about it. If anyone out there actually understands why a private host would be on the hook for VAT on Booking.com's fees—especially when they're just paying a flat tax and aren't even in the VAT system—could you please walk me through it? And does this limited VAT registration thing actually exist?