Pegasus Provides Agents with VAT Tool for Hotels

Pegasus Solutions has launched a VAT (value-added tax) self-enrollment site to facilitate the formation of international VAT self-billing agreements between hotels and agents. In the tradition of social networking, the site allows hotels and agents to register with a VAT ID and request “connections” to enter into official 12-month VAT self-billing agreements.

Recent European Union (EU) changes to cross-border VAT laws include a requirement for travel agents to list VAT IDs for all EU hotels at which the travel agents placed reservations, and for which such hotels have agreed to pay commissions to travel agents.

As a result, more agencies are refusing to book hotels that do not comply with the VAT process by providing the hotel VAT information. Pegasus’ VAT Self-enrollment site offers an efficient option for hotels needing to comply with both agent needs and EU requirements according to Mike Kistner, chief executive officer of Pegasus Solutions.

Currently, a large amount of VAT goes unpaid or unclaimed, leaving hotels and agents out of compliance. Internationally, tax authorities have the right to audit both hotels and agents to ensure a VAT self-billing agreement exists between hotels and agents participating in VAT self-billing arrangements.

In addition to the complimentary self-enrollment site to facilitate the creation of VAT self-billing agreements, Pegasus also offers an add-on VAT self-billing fee based service for the printing and distribution of self-billing invoices.