You have made a reservation contract with a customer in the MICE portal and now your customer has cancelled the booking.
There is a valid reservation contract 📄 in the MICE Portal.
The customer cancels a legally binding booking made in the MICE Portal between your house and a customer.
Please check the cancellation policy agreed in the reservation contract and create a cancellation invoice based on this agreement. The basis of this cancellation invoice are the agreements you made with the customer in the reservation contract in the MICE portal.
Since your cancellation invoice can be issued only on the basis of the reservation contract concluded in MICE Portal, MICE Portal is entitled to issue its commission invoice on the reduced cancellation invoice or no-show claim. MICE Portal has rendered its service with the conclusion of the reservation contract.
Please note: All framework contract rates that you have made with a customer and that have been deposited by the customer in your data record in the MICE Portal are exempt from commission. This also means that MICE Portal does not charge any provision /commission on cancellation invoices from framework contract partners. In general, the amount of the provision / commission always refers only to the amount of the service items that the hotel has charged the customer.
Whether it is a "no-show" claim or a cancellation fee, as a service provider you are entitled to charge for your loss of revenue. You decide for yourself to what extent these amounts are to be considered tax-free or not. However, the tax treatment does not release the hotel from the obligation to pay the commission.
Note: (This is an indication and not legally binding advice).
So-called "no-shows" occur when guests do not arrive without prior cancellation, i.e. "are not seen".
Cancellation fees (so-called deposit) in case of contractual withdrawal from a hotel reservation are "non-taxable damages" according to ECJ ruling of 18.7.2007 C-277/05. Thus, deposits for room reservations that are retained in the event of a cancellation of the reservation in accordance with the contract are "true damages" and thus, as with a no-show bill, are not taxable.
"Genuine", non-taxable damages only exist if there is no discernible exchange of services between the tortfeasor and the injured party (e.g. contractual and contractual penalties, judicial reminder costs, so-called reminder fees, interest on arrears).
For the entitlement to issue a commission invoice, the tax consideration - disclosure of value added tax - is irrelevant. In both cases, MICE Portal is entitled to charge commission on the net amount plus the current value added tax of 19%, since the exchange of services between the hotel and MICE Portal has taken place with the conclusion of the reservation contract.
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