I have a question about With Holding Tax. I hope someone knows what to do.

We are an online travel agency and we have structured our tax payments so that we book only our actual income, not the large sums which pass through our hands.

The structure is that:

• The hotel issues us with our net rate plus guidelines for the rack rate.
• We add usually about 10% onto the nett as our commission.
• We agree a price with the client.
• The client transfers the whole sum to us.
• We deduct our commission and forward the nett onto the hotel.
• We book the commission.

Technically we receive our commission from the hotel and we issue a receipt to the hotel for the commission received.

The problem is that we need a WHT form the commission received on each sale. No hotel will do this. Instead they issue a receipt to us in our company name for the nett rate and never ask for a WHT form from us either.

We are both sending each other receipts in opposite directions and nobody is paying WHT.

I’ve offered just to pay the WHT myself into our account but I can’t do this without their WHT form.

So we’re stuck. Anybody have any ideas?

Thanks, Phil

It doesn't matter to the Revenue Department who pays the tax so long as the 3% gets taken out of the commission and given to them. Try talking to your local revenue department as they are usually quite helpful and can give you instructions on how best to submit it.

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