What is VAT?

Value Added Tax (VAT) is a tax on the supply of goods and services. As a host on Holidu, it's important to understand how VAT applies to your earnings.

How does Holidu charge VAT?

Holidu charges VAT on service fees and deducts it from your payout. VAT is calculated only on commissions—both Holidu's and any channel commissions. This means the VAT amount is based on the total commission fees for each booking.

By law, Holidu is required to charge VAT on the services it provides. If a booking is modified, VAT adjusts accordingly to reflect the change.

How does VAT appear in your invoice?

The VAT deduction is detailed in each booking invoice you receive. For specific questions about how VAT applies to your individual fiscal situation, please contact your accountant or tax consultant. Holidu acts as a service intermediary and cannot provide guidance on individual tax positions.

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, your VAT number must be valid in the European system. Holidu currently uses the BZSt service: USt-IdNr. Bestätigung (bff-online.de) for validation.

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

To validate your VAT number for Reverse Charge, please contact your accountant or tax consultant. You can also check VIES validity here: https://ec.europa.eu/taxation_customs/vies/?locale=en