What is VAT?

Understanding VAT

Value Added Tax, or VAT, is a tax on the supply of goods and services. As a host on Holidu, you need to understand how VAT applies to your earnings. Holidu is required by law to charge VAT on service fees, and it is deducted from your payout. VAT is charged only on commissions — both Holidu's and the channel's commissions. This means the VAT is calculated based on the total commission fees for each booking.

How VAT appears in your invoice

The VAT deduction is detailed in each booking invoice you receive. The amount adjusts automatically if a booking is modified to reflect the change in commission fees.

For any individual fiscal questions specific to your situation, please contact your accountant or tax consultant. Holidu acts as a service intermediary and cannot provide guidance on individual fiscal positions.

Reverse-charge (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, your VAT number must be valid in the European system. We currently use the service BZSt: USt-IdNr. Bestätigung (bff-online.de).

Important: It is not sufficient that the VAT is VIES Valid. The VAT number holder name and address should match the information we have from the Holidu account holder for the VAT to be validated accordingly.

Other useful link: 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.