In previous articles, we explained the difference between a private host and a company. When an individual lets three or more properties on a short-term basis, their activity is treated as a business activity and falls within the VAT regime.
Booking has announced a new charge for its partners in Greece who do not hold a valid VAT number for intra-EU transactions that can be verified through VIES. From 1 December 2026, 24% Greek VAT will be added to Booking’s commission in these cases.
How this came about and what it means
The change also affects private hosts, that is, individuals who let up to two properties on a short-term basis. Having a personal tax number (ΑΦΜ) rather than a company does not, in itself, exempt you from the VIES issue.
VIES (the VAT Information Exchange System) is the European system used to check the validity of VAT numbers for intra-EU transactions. According to the Greek Independent Authority for Public Revenue (ΑΑΔΕ), VIES registration applies, among other things, to the intra-EU receipt of services.
What counts as an intra-EU receipt of services?
An intra-EU transaction does not only mean buying goods from another European Union country. It can also mean receiving a service from a business established in another Member State.
In Booking’s case, the host receives a service from the platform and is charged a commission for it. The VIES issue may therefore affect even a private host who has no other dealings abroad.
The ΑΑΔΕ also states that the obligation to register with VIES for the intra-EU receipt of services may apply even to persons whose activities are exempt from VAT.
What changes from now on
Until now, Booking did not charge this Greek VAT on its commission where the partner had declared a valid VAT number for intra-EU transactions.
There is one important point to note: this VAT does not apply to the price of the accommodation, and it does not mean that a private host will start charging guests 24% VAT. It applies to the service Booking provides to the host, namely its commission.
What hosts need to do
Booking has asked its partners to enter a valid EU VAT number, if they have one, by 31 October 2026.
Hosts without a valid VAT number that can be verified through VIES should factor the new charge into their commission from 1 December 2026.
You should not register with VIES simply to avoid the new charge. Because the obligation to register depends on your tax status and the specific transaction, hosts who are unsure whether they need to register should consult their accountant before making any changes.
What about pricing?
As the above shows, the host’s net income from each booking will fall. But how can the VAT on the commission be calculated so that it can be passed on to the guest?
Let us look at an example:
Suppose a property is booked at €100 and Booking’s commission is 16.6% (€16.60). Until now, the host received €83.40 before tax and operating costs.
With VAT now added to Booking’s commission, the €16.60 becomes approximately €20.58, so the host will receive approximately €79.42 before tax and operating costs.
To cover this difference and keep the same net amount, the booking price would need to rise by approximately 5%.
Key takeaways
The change concerns Booking’s commission, not the taxation of the accommodation itself. Private hosts without a valid VAT number for intra-EU transactions should work out the additional cost and, together with their accountant, establish what applies to their VIES registration.
