Issuing a professional invoice is a crucial aspect of managing a vacation rental, particularly when handling direct bookings. In this guide, you'll learn how to generate invoices, what to include, and how to simplify the process using Smoobu, a leading vacation rental management software.
Why Should You Issue a Vacation Rental Invoice?
While platforms like Airbnb, Booking.com, or Abritel often handle payments, direct bookings through your website or booking engine may require you to generate invoices manually. Issuing a clear, professional invoice is not just a formality—it can enhance trust and streamline operations.
6 Key Reasons to Issue Invoices:
- Transparency: Clearly outlines charges to your guests.
- Professionalism: Reinforces that your rental is well-managed and legitimate.
- Clarity: Breaks down costs (rental, cleaning, services) to avoid disputes.
- Invoice: An invoice can serve as a record of rent for guests’ records.
- Income Tracking: Helps document and report your rental income.
- Compliance: Required if renting to professionals or in regions with specific invoicing laws.
💡 Note: Invoicing is optional for private rentals between individuals but mandatory for business travelers.
What to Include in a Vacation Rental Invoice
A professional vacation rental invoice should meet local legal requirements. Below is a checklist of the mandatory and recommended information to include:
- Invoice Title: e.g., “Vacation Rental Invoice”
- Unique Invoice Number
- Guest Information: Full name and address
- Host Information: Your full name and address
- Rental Period: Dates as per the rental agreement
- Rental Property Address
- Number of Guests
- Itemized Charges: Include each service with quantities, availability dates, and unit prices
- Tourist Tax: If applicable, based on location and accommodation type
- Discounts: If applicable
- Payment Methods: Credit card, PayPal, bank transfer, etc.
- Payment Terms: Deadline, late fees (if any)
- Subtotal
- Total Amount Payable
📌 When in doubt, consult a certified accountant to ensure your invoices meet local tax regulations.
Simplify Invoicing with Smoobu
Discover the benefits of using Smoobu’s vacation rental software for your invoicing needs. With Smoobu, you can automate the invoice process using customizable templates, saving you time and ensuring accuracy.
Key Features of Smoobu’s Invoice Tool:
- Customizable invoice layout and fields
- Auto-filled guest and reservation data
- Pre-set and adjustable VAT rates
- Personalized footers for payment details and messaging
- Smoobu's invoice tool supports multiple payment methods, including PayPal links, to ensure your guests can pay in the most convenient way for them. This flexibility not only enhances the guest experience but also simplifies payment collection for you.
- Options to include additional services (even with different tax rates)
Once set, your preferences apply by default but remain flexible for individual adjustments.
How to Generate an Invoice with Smoobu
Creating an invoice is easy:
- Go to the desired reservation.
- Click “Create Invoice.”
- Traveler information and totals (net and gross) auto-populate.
- A PDF is generated and ready to be sent or downloaded.
You can also create and manage invoices directly through the Smoobu mobile app.
Personalize Your Invoice for a Professional Look
Make your invoice stand out by:
- Adding your company logo
- Customizing the footer with terms or contact details
- Including direct payment links (e.g., PayPal)
This not only supports brand consistency but also simplifies payment collection for your guests.
How Guests Can Pay
Guests will find your payment details in the invoice footer. You can also include clickable PayPal links that automatically fill in the total amount due. Payments made this way are credited instantly to your PayPal account. You may also offer credit card or bank transfer options, depending on your preferences.
How Smoobu Helps with Airbnb Invoicing
Smoobu simplifies Airbnb invoice creation by automatically pulling guest and booking data from your Airbnb reservations. Whether you're issuing a formal invoice for Airbnb bookings or consolidating data across platforms, Smoobu helps ensure accuracy, speed, and compliance.
With Smoobu, you can:
- Generate an Airbnb-compliant invoice in just a few clicks
- Customize the invoice with your branding and payment details.s
- Send professional invoices via PDF or link, even from your mobile app.
Airbnb Invoices Best Practices
- Always clarify if the guest needs an invoice during or after the booking process.
- Include Airbnb-related fees or commissions as separate line items if needed.
- It's crucial to retain digital records of your invoices for accounting and tax purposes. Smoobu's invoice tool makes this easy, allowing you to store and access your documents whenever needed. This level of organization not only keeps you compliant but also helps you stay on top of your rental business.
- Utilize a dedicated vacation rental software, such as Smoobu, to ensure consistency and compliance.
Invoicing advice for the UK
When do you need to issue an invoice?
- For most stays, you can provide a receipt, but if you’re VAT-registered and your customer is VAT-registered (B2B), you must issue a VAT invoice and usually within 30 days of supply.
What every UK invoice should include
At a minimum, include: a unique invoice number, your business name and address, the guest’s name and address, what was provided, the supply date, the invoice date, line amounts, VAT (if applicable), and the total due. Sole traders must also show their name; limited companies must show the registered company name.
If you’re VAT-registered
- Only VAT-registered businesses can issue VAT invoices.
- A full VAT invoice must show: a sequential invoice number, time of supply (tax point), date of issue, your business name, address and VAT number, the customer’s name/address, description and quantity/extent, unit price, VAT rate(s), net amounts, total VAT (in sterling), and totals.
- You can issue a simplified VAT invoice for supplies of £250 or less with reduced details.
- The VAT registration threshold rose to £90,000 taxable turnover on 1 April 2024. If you’re below the threshold, you generally don’t charge VAT or issue VAT invoices.
Record-keeping
- If you’re VAT-registered, keep copies of invoices and VAT records for at least 6 years. Electronic invoicing is fine if you meet HMRC’s rules.
Practical tips for hosts and managers
- Show nightly rate(s), cleaning or add-on fees, and any taxes/levies separately for clarity.
- Make payment terms explicit (due date, methods accepted) and include your legal name details that match your tax registration.
- If a platform processes taxes/fees on your behalf, reflect those as separate lines so totals reconcile with payouts and guest receipts.
Invoicing advice for the United States
General approach
The IRS does not prescribe a single federal invoice format. Use a clear, itemised document that shows income and expenses accurately for tax reporting.
- Unlike the UK, the U.S. doesn’t mandate a universal invoice template for private transactions. Use a clear, itemized document with: unique invoice number, your business name/address, guest name/address, description of stay and fees, invoice date, due date/payment terms, accepted payment methods, and any applicable taxes.
Sales and lodging (occupancy) taxes
- Taxes vary by state and city. Many jurisdictions impose hotel/lodging/occupancy or short-term rental taxes on stays under a certain length (often under 30 days). Check and itemize these taxes on your invoice when you are responsible for collecting them.
- Platforms may collect and remit for you. Airbnb collects and remits certain taxes in many U.S. locations, but you may still need to register and file returns depending on local rules. Always confirm your listing’s tax settings and local filing requirements.
Income reporting and forms
- You must report all rental income on your federal return, regardless of whether you receive a form. Third-party platforms may issue Form 1099-K; the IRS has phased reporting changes and explains how 1099-K works for 2024–2025.
- If you pay owners or contractors (e.g., a cleaner) as a property manager, collect Form W-9 to obtain their legal name and TIN and keep it on file.
- Keep good records—supporting documents should identify payee, amount, date, payment proof, and what was purchased.
What to show on U.S. invoices (practical checklist)
- Line items: nightly rate(s), cleaning or add-on fees, discounts, taxes, and total due.
- Dates: stay dates, invoice date, due date.
- Terms: payment method(s), late-fee policy where permitted by local law, and refund/cancellation policy summary. (General business guidance.)
- Even part-time income is taxable; invoices and receipts help you track revenue and deduct eligible expenses in your accounting.
Optimize Your Rental Business with Smoobu
Ready to streamline your invoicing and elevate your rental management? Try Smoobu free for 14 days—no credit card required—and experience the benefits of automated invoicing, seamless channel management, website integration, and more.