Does Big Foreign Company Pay Tax in Australia Here and Need To Follow Local Law (E.g Booking.com)

Associatedyumika11 @ springhillwinery.com.au on 09/03/2019 - 11:53

I have a small business for accommodation service. I have my own website but also listed on referral website such as booking.com and airbnb.

I have noticed that when guest book a room, booking.com charge guest, but booking.com won't pay me until 1 month after guest check out. For example, I had booking in Jan 2019 for check in April 2019, booking.com won't pay me until May 2019.

Airbnb is a bit better, they pay 1 day after guest check in, and airbnb pay 1 transaction for 1 booking, not like booking.com pay booking for whole previous month.

So in this case, those companies hold large funds from Australian resources(i.e guest accommodation payment for a period of time), and I have noticed that they move money to overseas. Because when booking.com pay me for Jan 2019 payment, my bank charge me $10 bank fee, I have called my bank, the money is coming from overseas and everyone knows that if an AU bank transfer AUD to another AU bank, there is no fees.

The worse part is, I can't receive money as per contract stated, which is the following month by 14th.

So eventually I decided to close my account with booking.com, now booking.com try to charge me a re-location guest cost, and they relocated my guest to another place charge 200% + than my original booking charge, and expect me to pay the gap (I didn't know how much are they charge me or if they would charge me as there was never a communication, until 1 month later when they invoiced me). So all the sudden, I can't receive my host payment and they claim I owe them.

My question is (not sure it can be a dispute), does those company pay income tax and company tax in Australia? Does Australian guest know they are paying overseas and those money guest paid are going overseas but not going to hosts? Clearly they are making good money here even for relocation.

I checked my invoice, there is no "dispute or complain" method listed anywhere, I checked my contract/agreement, there is noting about how to put a complain, all about how can they charge money. However, is it even fair to relocate a guest without telling me how much or ask if I agree or not, but just charge me? (Especially when the reason I decide to close account is because I can't receive my payment at contract agreed time?)

I hope someone know this area could give some advise.

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Comments

  • Richfield on 09/03/2019 - 13:25

    Top hit for booking.com partner complaint - https://partnerhelp.booking.com/hc/en-us/articles/212708189-…

    Why is everyone a ghost on your website?

    • Associatedyumika11 @ springhillwinery.com.au on 10/03/2019 - 10:21

      It's a long story, for short, it's Artist Impression and in industry we put people transparent.

      Thanks for the link, I will send a complaint.

      Before I posted a thread "payment not received" on partner forum, within 24 hours I got people reply saying they are in the same boat, however, after 24 hours my thread seems disappeared…but if you search "payment not received", there are heaps of post there.

    • Associatedyumika11 @ springhillwinery.com.au on 10/03/2019 - 11:32
      I sent below complaint, hope there is some feedback.

      I have 2 properties listed with booking.com, 4451533 & 4450799.

      I received Jan payment for 4450799 on 12th Feb, but I didn't receive 4451533 payment by 15th Feb. (agreed payment time is the following month by 15th) At that time I called customer service, sent message, did multiple complaint via inbox, searched partner forum, sent a post, finally received money on 21st Feb.

      However, my account was closed by booking.com around 18th Feb (I don't know exact time), after number of complaint and the feedback from partner forum, I had no confidence of receiving my money. I sent a message to booking.com, without anyone contact me, after I log on, found my account was closed.

      On 20th Feb I got a call from customer service saying because I can't accommodate guest, they are cancelling this booking. I said to her I can accommodate this guest, if I can receive my money. Customer service send me email about relocate this guest (no mention about cost) and I replied I disagree. Customer service should offer me VCC to guarantee my payment, not relocate my guest to a place 200% of my cost without informing me and agreed with me.

      I only found out this cost on 6th March when I receive invoice. Even at the time when I receive invoice, I thought the cost is $590 , didn't think it's $1160. I checked my agreement, there is clause about relocate guest due to overbooking, but nothing about relocate guest "because booking.com doesn't pay me on time and my account is closed" there is no clause about "relocate guest to a place 200% of the cost without asking partner to agree with".
      I request this invoice to be cancelled.

    • Associatedyumika11 @ springhillwinery.com.au on 11/03/2019 - 20:24

      Just let you know this method didn't work. I did follow the steps and got a reply "please wait for our finance team". I then replied " I never got a reply from finance team".

      The back to square 1.

      So in another words, they don't have a complaint or dispute channel.

  • HighAndDry on 09/03/2019 - 13:59
    +2

    However, is it even fair to relocate a guest without telling me how much or ask if I agree or not, but just charge me?

    Whatever you voluntarily and freely agreed with them in your contract is what's fair. What does your contract say?

    • Associatedyumika11 @ springhillwinery.com.au on 10/03/2019 - 10:36

      In agreement, only say "reimburse and compensate booking.com and / or guest for all reasonable costs and expenses"… "caused by overbooking"..

      Didn't have anything like my example at all.

      1st, what is "reasonable cost"? guest pay $560 to book my place, they relocated guest to a $1160 place and expect me to pay the gap, is this reasonable? They didn't tell me and ask my opinion, I think in Australian all merchandise should properly display the price they are going to charge? I only found out this cost 1 month later when they invoiced me.

      2nd, it's not caused by overbooking. My place is available for this guest, it's booking.com doesn't pay me at agreed time frame, made me had no confidence in them. By searching partner forum, I found more people in the same boat. When I call customer service and message them, no reply.. for small business, it's killing. I felt the more I host the more I am going to lose.

      • HighAndDry on 11/03/2019 - 09:59

        1st, what is "reasonable cost"? guest pay $560 to book my place, they relocated guest to a $1160 place and expect me to pay the gap, is this reasonable?

        Is that the only other accommodation that has equivalent features to what the guest booked? If so, then yes - you should know, accommodation can vary greatly in price depending on when it's booked.

        2nd, it's not caused by overbooking. My place is available for this guest, it's booking.com doesn't pay me at agreed time frame, made me had no confidence in them.

        It seems you cancelled your contract with booking.com forcing them to relocate the guest. Your contract will tell you under which circumstances you're allowed to cancel your contract with them, and what happens. If you can't find it, you're likely reading a summary of your contract and not the actual full document.

        • Associatedyumika11 @ springhillwinery.com.au on 11/03/2019 - 20:22

          Well, I hope I could know the cost? Is it fair request? Or does general public think host should just pay whatever bill to us?

          Second, they didn't pay me first, I wish I could send pictures so you can see how many other host didn't receive money.

          I double checked contract, didn't say.
          When I read expedia's contract, it said both party need to give 14 days notice in writing. However, booking.com doesn't have.

          They just closed my account for me.

  • Hardlyworkin on 09/03/2019 - 16:28

    Out of interest, what fees do booking.com take from you? Do you prefer when people book directly with you?

    Are any of the alternatives to booking.com local?

    • bazza1980 on 10/03/2019 - 10:09
      +1

      Out of interest, what fees do booking.com take from you?

      Fees can typically range anywhere from 10%-25%

      • Associatedyumika11 @ springhillwinery.com.au on 10/03/2019 - 10:39

        for expedia, it's 15% and 10% (optional) off base price for members.
        booking.com is 12-15%.
        airbnb used to be 3% on host, then change to about 5%, but airbnb add about 20% to guest now.

      • shadowangel on 10/03/2019 - 20:22

        how is it even calculated do you get a set base rate or based of the selling price ? booking hotels can show diffrent prices on diffrent browsers or even locations.

        • Associatedyumika11 @ springhillwinery.com.au on 11/03/2019 - 20:18

          yes you need to set up a base rate, then different platform has a seasonal rate applies, that's why different website is different price.
          Sometimes platform might offer you discount ( from the commission they charge).

    • Associatedyumika11 @ springhillwinery.com.au on 10/03/2019 - 10:38
      +1

      it's 12%.
      And yes, I would rather pass that 12% to guest if book with me direct.
      Australian Money should not go overseas when we pay tax and everything here.

      You actually remind me, I am going to make a coupon for OP.

  • whooah1979 on 09/03/2019 - 21:41
    +1

    Initiate a chargeback.

    • Associatedyumika11 @ springhillwinery.com.au on 10/03/2019 - 10:40

      what is a chargeback?
      booking.com hold the money guested made for booking, but not pay me.
      I can't charge anyone :(

  • whooah1979 on 10/03/2019 - 10:47
    +1

    Take booking.com to the VCAT.
    https://abr.business.gov.au/AbnHistory/View/14130562097

    • Associatedyumika11 @ springhillwinery.com.au on 10/03/2019 - 11:01
      +1

      yeah, I noticed that they registered GST, but the invoice they sent to me has no GST and come from Netherlands, but the invoice ask me to pay a local bank account. I was wondering will ATO happy about this.

      I'm pretty sure that you have to have an ABN number to register a domain with .com.au, when you go to booking.com.au, it lead you to booking.com.

      However, their bank account is ANZ, which need a company certificate to register too.

      So why there is no GST charged.

      At first, I didn't think a big company like this would be doggy. I agree for the commission, even agree to receive money 1 month later after guest check in, however, I also expect to receive money on time. I have utilities, cleaners, gardeners to pay. Imagine if I don't pay them on time, they would send me to fair trading…

      They even tell my guest that all booking is normal, when I showed my guest the log in screen I can see under my account " cancellation pending" " account closed", they agreed to refund my guest.

      • whooah1979 on 10/03/2019 - 11:06

        So why there is no GST charged.

        You're focusing on the wrong issue. GST compliance is a matter for the authorities to deal with. What you want is to get paid for providing a service. Booking.com has an Australian entity which may make it easier for you to take them to the VCAT.

        • Associatedyumika11 @ springhillwinery.com.au on 10/03/2019 - 11:36

          i sent a complaint to booking.com, not sure would work (I did multiple times before didn't work).

          And I will try VCAT too.

          But my whole point here is, do they need to follow local laws. On their agreement, nothing about Australian entity, even said "any dispute arising out or in connection with this agreement shall exclusively be submitted to and dealt with by the competent court in Amsterdam, the Netherlands"

          • whooah1979 on 10/03/2019 - 11:45
            +1

            @yumika11:

            "any dispute arising out or in connection with this agreement shall exclusively be submitted to and dealt with by the competent court in Amsterdam, the Netherlands"

            This doesn't mean much based on previous cases. Valve Corporation v ACCC.
            https://www.accc.gov.au/media-release/full-federal-court-con…
            http://www5.austlii.edu.au/cgi-bin/sinosrch.cgi?query=Austra…

            • Associatedyumika11 @ springhillwinery.com.au on 10/03/2019 - 12:53

              @whooah1979: That's very encouraging! :)
              Thank you!
              I just got disappointed as a small business, try to do things right, but big companies had more power to avoid being punished.

              To be honest, if they offered me VCC to guarantee payment, I would take that guest, at the end of the day, it's a sales for me.

              But who wants to keep hosting for them, doesn't have a guaranteed payment.

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