What is VAT?

Understanding VAT

Value Added Tax (VAT) is a consumption tax on the supply of goods and services. As a host on Holidu, you need to understand how VAT applies to your payouts, as Holidu is required by law to charge VAT on its service fees.

How VAT Works on Holidu

VAT is charged only on commission fees—both Holidu's commission and any channel commissions associated with a booking. This means the VAT amount is calculated based on the total commission fees for each booking and is deducted from your payout.

When a booking is modified, the VAT adjusts automatically to reflect the changes.

VAT on Your Invoice

The VAT deduction appears as a separate line item on each booking invoice. For specific questions about how VAT affects your individual tax situation, please contact your accountant or tax consultant. Holidu acts as a service intermediary and cannot provide guidance on personal fiscal matters.

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. We currently use the BZSt service: USt-IdNr. Bestätigung (bff-online.de).

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

For more information, visit: https://ec.europa.eu/taxation_customs/vies/?locale=en

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. If you are located in one of these regions, VAT (IVA) does not apply to your Holidu service fees, and Holidu issues commission invoices without VAT.

You remain responsible for declaring and paying any applicable local indirect taxes, such as IGIC or IPSI. Consult your local tax authority or accountant for correct reporting and compliance, and reach out to your local Holidu Host Support team if you have questions about how this is reflected in your account.