Five steps to private accommodation

Private accommodation is currently a sought form of accommodation.It supports the local economy, but also the virtual economy, thus the economy built on the Internet. There are many reservation systems that offer private accommodation, helping landlords increase their profits.

Step 1: Register with the tax administrator and request the assignment of a VAT number

Registration and request for the assignment of a tax identification number (VAT number) is a free process at the relevant tax office. All you have to do is fill in the application for registration, which is available at the Tax Office or on the Financial Administration website. This is necessary according to Act No. 595/2003 Coll. about income tax no later than the end of the month following the month in which the property was rented. Registration is free. After the application, a registration card with a VAT number will arrive at the applicant's address within 30 days by post.

Step 2: Apply to the municipal office to pay the accommodation tax 

The process of recording the payment of accommodation tax is usually defined in the General Binding Regulation (CBR) of the municipality in which the property is located. The amount of the overnight fee per person and the method of payment are usually calculated in the relevant CBR. In smaller municipalities, it is appropriate to personally arrange this agenda directly at the municipal office.

Step 3: Prepare the room, accommodate the client

According to the decree of the Ministry of Economy of the Slovak Republic, which establishes the classification marks for accommodation facilities when classifying them into categories and classes (No. 277/2008 Coll.) There are several categories of rented premises. Their distribution is marked with 1 to 3 stars, while one star has accommodation with basic equipment and three stars have facilities with rooms of a higher standard. All characteristics of private accommodation are listed in the mentioned decree (Table: VIII. Classification features of private accommodation). The duties of the landlord also include the marking of the accommodation - it must be placed in a suitable and visible place. The landlord is also obliged to ensure that the accommodation is accessible 24 hours a day. This means that access should not be prevented by an obstacle, such as locking the gate to the property's yard and so on. The price list is made available to guests in an appropriate manner (e.g. via the Internet, in paper form, by e-mail or by telephone). The landlord must ensure the change of bed sheets, towels and other items according to the category of accommodation and the table in the decree.

The landlord is not obliged to report the alien's stay to the Aliens Police, this obligation is up to the alien himself. According to the Act on the Residence of foreignersno. 404/2011 Coll. forgeinre is obliged to sign the completed form on the report of residence and bring it in person to the workplace of the Forgeiner Police within the relevant deadline by 3, or 10 days from entry to Slovakia. The deadline of up to 3 days applies to third-country nationals and up to 10 days to EU citizens. It is recommended for foreigners to print out and prepare a residence report form when taking over the room and to inform him where the relevant foreigner police station is.

Step 4: Terminate and charge the stay

According to the agreement with the client, it is necessary to prepare a tax document. It is best to issue an invoice (it can also be handwritten on a pre-printed pattern, which is commonly available in stationeries). The invoice must have the requisites required by Act no. 431/2002 Coll. about accounting. The invoicing data are: the name of the document and its serial number (Invoice 0001), the designation of its participants, the amount of money or information on the price for the service (number of overnight stays) and a description of what it about, the date and signature of the landlord. It is also possible to accept cash, but in this case, according to the Act on Accounting, a cash register is required, or e-checkout. Experience has shown that a non-cash money transfer for a service directly to the landlord's account is more appropriate. This solution is also suitable for the client, as he can prove to his employer that he has paid for the holiday if he claims reimbursement via holiday vouchers. According to CBR, the landlord is obliged to pay the accommodation tax to the local government after the end of the accommodation.

Step 5: File a tax return

Paying taxes is decent and correct. When providing private accommodation without a trade license, the tax return is filed in the same way as other returns - no advance is paid, the income is recorded in the tax return once a year. Warning! The tax return is filed on a form for individual type B. According to the Tax Act (No. 595/2003 Coll.), it is possible to deduct 500 € and annual costs associated with the operation of real estate (electricity, waste collection, hot water production, internet operation). Their amount must be an aliquot at the time of rental. Example: If the rental period is 10 days per month, then the costs will be appropriate for that period - 1/3 of the total monthly costs. No taxes are paid from income!

I hope that these few steps will help you manage to provide accommodation and attract many tourists to you. I also believe that they will be satisfied with your services and will be happy to return to you.