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 account and payouts.

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 commission and the channel's commission. This means the VAT amount is based on the total commission fees for each booking.

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

How does VAT appear in your invoice?

The VAT deduction is detailed in each booking invoice. You can review the exact VAT amount charged for every transaction in your booking records.

For specific fiscal questions about how VAT applies to your individual 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, 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 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.