How to Create and Submit VeriFactu-Compliant Invoices

Before setting up guest invoicing in Hostaway, please understand these key principles:

Invoices Are Built from Reservation Data

All invoice information (guest name, booking dates, charges, etc.) comes directly from your reservation details. If you need to change invoice information, you must update the reservation itself before generating the invoice.

VAT and Taxes Are Auto-Calculated

Invoice line items, including VAT and taxes, are automatically populated from:

• Financial Formulas configured in your Hostaway account, OR

• Tax information provided by the OTA (for channel bookings)

This ensures data accuracy and consistency across all invoices.

Authorization Required (Spain Only)

All Individuals and business owners must submit an authorization document to the Spanish Tax Authority (Agencia Tributaria) that permits Hostaway to issue invoices on your behalf. This is a mandatory requirement for Verifactu compliance.

Finalized Invoices Cannot Be Edited

Once an invoice is finalized and submitted, it becomes a legally binding document and cannot be edited or deleted. Any corrections required:

• Credit Note (for cancellations or refunds), OR Corrective Invoice (for errors)

The appropriate method depends on your country's tax regulations.

Step 1: Connect to VeriFactu

Before generating VeriFactu invoices, you need opt-in by configuring your Invoice Settings.

1. Log in to your Hostaway account

2. Navigate to Guest Payments > Invoices > Settings

3. Add Invoices Setting

   • Setting Tittle

   • Country (Default Spain)

   • Seller Name

   • Tax ID (NIF/CIF) for Spanish businesses

4. Click the Connect Button and follow the VeriFactu “Supplier” Onboarding Steps

Step 2: Seller Information

Seller Information is populated from the VeriFactu Onboarding. This is to maintain accurate information on both systems. 

Step 3: Set Up Invoice Numbering Series

Invoice numbering is a critical component of tax compliance. Hostaway allows you to create a custom numbering series and even migrate your existing invoice numbers from other systems to ensure business continuity.

Option 1: Start a New Numbering Series

1. Select Your Format:

   • Choose from available formats:

     • YYYY/#### (e.g., 2025/0001)

     • INV/YYYY/#### (e.g., INV/2025/0001)

     • ####/YYYY (e.g., 0001/2025)

2. Enter Starting Number:

   • Input your starting invoice number (e.g., 0001 or 1)

   • The system will automatically increment from this number

Option 2: Migrate Existing Invoice Numbers

Use this if you're switching from another invoicing system and want to continue your existing numbering series.

1. Select Your Current Format:

   • Choose the same format you used in your previous system

2. Enter Your Last Invoice Number:

   • Look up the last invoice number you issued in your old system

   • Enter that number in the Starting Number field

   • Hostaway will automatically continue from the next number

Step 4: Set Up Invoice Closing Settings

Option 1: Manual Closing

How it works:

• Invoices remain open and editable after generation

• You can review, modify, and verify all details

• You manually click "Save and Submit" when ready

• Invoice is then finalized and submitted to the tax authority

Steps to Enable:

1. Locate the Invoice Closing Settings section

2. Select "Manual Closing"

3. Click Save

Option 2: Automatic Closing (Temporary not available, expected to be available Q2 2026)

How it works:

• Invoices are automatically generated, closed, and submitted based on your settings

• No manual review or action required

Steps to Enable:

1. Select "Automatic Closing"

2. Choose your Auto-Close Trigger

3. Choose when to Auto-Close Invoice.

4. Save

Step 5: Apply Invoice Settings to Specific Listings

While you can configure global invoice settings for your entire account, Hostaway also allows you to apply custom invoice settings at the listing level. This is essential for property managers who operate across multiple locations, manage properties for different owners, or run multiple business entities.

Note: For new Invoice Settings where TAX ID remains the same and only numbering settings & Listings change, VeriFactu Onboarding will be Automatic.

Set Up VAT for Invoice Accuracy

Why VAT Configuration Matters

VAT (Value Added Tax) is a mandatory requirement for generating invoices.
If VAT is not available, invoices cannot be generated.

Key points:

• VAT is sometimes automatically provided by the OTA (Airbnb, Booking.com, Vrbo, etc.).

• Invoices cannot be generated if VAT is missing.

• For Direct Bookings and Booking Engine reservations, VAT is calculated based on the Financial Formulas you configure in Hostaway.

What you need to do

1. For OTAs (Booking.com, Airbnb, Expedia):
   Make sure VAT is accurately configured in each OTA’s extranet.

2. For Vrbo, Direct Booking, Booking Engine, and Marriott:
   Log in to your Hostaway dashboard and configure taxes under:
   Financial Reports > Financial Settings > Taxes

See Financial Reporting: Adding Taxes for a step by step guide.

If you need any help, feel free to reach out to us at support@hostaway.com and our team will be happy to assist you.