This article explains the specific case of taxing client payments if they are sent via a broker that is working in the name and the account of supplier. In other words this is a case where charter operator is invoicing the end client and receiving the payment from the broker.
Usually broker/agency is forwarding the payment reduced by the amount of their commission, and at the end of the booking process the incoming invoice for agency commission balances the difference.
In this case the tax authority expects that the charter operator has to invoice the full amount of client payment regardless of the amount of money received. In practice this means that the amount paid by the agency will be increased by the commission
Pursuant to the decision of the Euopean court of justice C-189/11 from 26.9.2013. the rules of the taxation were simplified and Croatian Tax authority has issued a detailed memo about correct practices in taxing travel agencies.
PRAVILNIK_NOVI.pdf (CROATIAN LANGUAGE)
In the last paragraph document explains the advance invoice taxation rule.
When using Booking Manager it is easy to activate this feature in options Preferences > Reservation Settings > Payments by clicking on the "Create payment increased by agency commission" option:
After turning on this option, all payments on reservations where broker sends a separate invoice for his commission will be invoiced accordingly to the rule.
When we enter the payment on these reservations, the invoiced amount will be increased by the commission percentage that has been assigned to this reservation:
You will notice that system will Show you the actual amount received and amount invoiced separately in brackets so that the total paid and payment due amounts will be correctly calculated as before. The invoiced amount is automatically correctly calculated, and by clicking the amount with right mouse button you can change the invoice value if you have the need to manually modify it.