What is VAT?

What is VAT and how does Holidu charge it

Value Added Tax, or VAT, is a tax assessed on the supply of goods and services. Holidu charges VAT on service fees, and it is deducted from your payout. VAT is charged only over the commissions, both Holidu’s and the Channel’s commissions.
Therefore, the VAT is based on the total commission fees for a reservation. Why? Holidu charges VAT because it is required by law to charge VAT on services. If a reservation is modified, VAT adjusts to reflect any change.

How does the VAT look like in your invoice? How does it apply to you?

The VAT deduction is detailed in each reservation invoice.
For any further information about individual fiscal inquiries, please contact your accountant or tax consultant.
Holidu acts as a service intermediary, and we are not able to provide information 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, 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.

VAT Exceptions (Spain)

Certain Spanish territories, such as the Canary Islands, are outside the EU VAT area.

What this means for hosts located there:

• VAT (IVA) does not apply to your Holidu service fees.
• Holidu will issue commission invoices without VAT.

However, you are still responsible for declaring and paying any applicable local indirect taxes, such as:

• IGIC
• IPSI

Please consult your local tax authority or accountant to ensure correct reporting and compliance.