What is VAT?

Value Added Tax (VAT) is a tax on the supply of goods and services. As a Holidu host, VAT may apply to your account depending on your location and business setup. Understanding how VAT works ensures you're prepared for tax obligations and can accurately manage your finances.

How does Holidu charge VAT?

Holidu is required by law to charge VAT on service fees. VAT is calculated and deducted from your payout based on the total commission fees for a booking—including both Holidu's and any channel commissions. When a booking is modified, VAT adjusts automatically to reflect the change.

The VAT deduction is detailed in each booking invoice for your records.

How does VAT appear in your invoice?

Each booking invoice clearly itemizes the VAT deduction applied to your payout. For individual fiscal questions or to understand how VAT specifically impacts your tax situation, please contact your accountant or tax consultant. Holidu acts as a service intermediary and cannot provide personal tax guidance.

Reverse-charge mechanism (EU VAT)

The reverse-charge mechanism is a VAT rule that shifts the liability to pay VAT from the supplier to the customer.

You can have the VAT deducted from the payout and collected in Germany (as Holidu is based in Germany) or receive the full payment and pay VAT in your country, if your VAT number is active for Reverse Charge. The tax rate applied should be the one where the VAT is collected.

For this to happen, you should have your VAT number valid in the European system: for the VAT to be valid in our system, we are currently using the service BZSt: USt-IdNr. Bestätigung (bff-online.de).

Important: It is not sufficient that the VAT is VIES Valid, but also the VAT number holder name and address should match the info we have from the Holidu account holder, in order to have the VAT validated accordingly.

Other useful links: https://ec.europa.eu/taxation_customs/vies/?locale=en

In order to validate your VAT number for Reverse-charge, please contact your accountant or tax consultant.