What is VAT?

Value Added Tax (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, as it may affect your payouts.

How does Holidu charge VAT?

Holidu is required by law to charge VAT on service fees. Here's what you need to know:

• VAT is deducted from your payout
• VAT is charged only on commissions (both Holidu's and channel commissions)
• VAT is calculated based on the total commission fees for each booking
• If a booking is modified, VAT adjusts to reflect the change

How does VAT appear in your invoice?

The VAT deduction is detailed in each booking invoice. 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 fiscal 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).

Important: It is not sufficient that the 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 these areas:

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

You remain responsible for declaring and paying any applicable local indirect taxes, such as IGIC or IPSI. Please consult your local tax authority or accountant for correct reporting and compliance.