Booking doesn’t take 15%. It takes 18.75%.

Booking’s invoice says 15%. Your bank account, a month later, says more. The difference isn’t a mistake — it’s the VAT you pay on Booking’s commission. And most hosts leave it out when they think about what the portal really costs them. Foreign owners especially often don’t know it exists until their accountant asks.

Why you pay VAT on someone else’s commission

Booking.com is a Dutch company, Airbnb an Irish one. When a service comes from another EU country, VAT isn’t charged by the seller but by the buyer — you. It’s called the reverse charge, and in Croatia it applies to flat-rate hosts too, even if they’re otherwise outside the VAT system.

The rate is 25%. Not on your revenue — on the commission. But that’s enough to change the math.

The math

• Booking: 15% commission + 25% VAT on it (3.75%) = 18.75% of every booking.
• Airbnb: 15.5% commission + 25% VAT on it (3.875%) = about 19.4%.
• Booking with visibility programmes (Preferred and similar), at a higher commission — the VAT grows with it.

For a villa with €30,000 a year in revenue through Booking:

• 15% commission: €4,500
• VAT on the commission: €1,125
• Total: €5,625 a year — not the €4,500 on paper.

You don’t see that €1,125 on Booking’s invoice. You see it on a payment to the Tax Administration, in a different month, so it never adds up in your head. Work out your own numbers in thecommission calculator — the VAT is already included.

What you have to do

• A VAT ID number. Form P-PDV, at the tax office or through ePorezna. The number is your OIB with the prefix HR. Enter it in your Booking and Airbnb settings.
• The PDV and PDV-S forms for every month in which you paid commission — by the 20th of the following month.
• Payment of the VAT by the end of that same month.

This is the general procedure, not tax advice. It depends on whether you’re a flat-rate host, a sole trader or a company, and whether you’re in the VAT system — so check it for your situation with an accountant. Missed filings can come with interest.

Where there’s no commission and no VAT on it

There’s one booking on which you pay neither 15% nor the 3.75% on top: the one that comes straight to you. The returning guest, the referral, the guest who saw you on Booking and then searched your name on Google.

You still need Booking for new guests — it brings them well. But every direct booking from a guest who already knows you is worth 18.75% more to you. On €30,000 of revenue, if you bring a third of your guests back to booking direct, that’s about €1,875 a year that stays with you.

That’s why we build websites for villas and apartments: so a guest searching for you by name finds you, not your listing on a portal. More in the guide Your own website or Booking?

Frequently asked questions

Do I pay VAT on Booking.com commission as a flat-rate host in Croatia?

As a rule, yes. Booking.com and Airbnb are companies from other EU countries, so a Croatian host self-assesses VAT on their service — at 25%, even when not registered for VAT. For that you need a VAT identification number.

How do I get a Croatian VAT ID number?

With form P-PDV, at the Tax Administration office or through ePorezna. The number is your OIB with the prefix HR. Apply before you start receiving the platforms’ services.

Which forms do I file, and by when?

For each month in which you paid commission, the PDV and PDV-S forms are filed by the 20th of the following month, and the VAT is paid by the end of that month. Check the exact procedure for your situation with an accountant.

Is there VAT on direct bookings too?

A direct booking carries no platform commission — so there’s no VAT on that commission either. Your regular tax obligations as a host stay the same as always.