What is VAT?

Value Added Tax (VAT) is a tax on the supply of goods and services. Holidu charges VAT on service fees, and it is deducted from your payout. VAT applies only to commissions—both Holidu's and channel commissions—based on the total commission fees for a booking.

Why does Holidu charge VAT?

Holidu is required by law to charge VAT on services. When 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 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 service BZSt: USt-IdNr. Bestätigung (bff-online.de).

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

You can check VAT numbers here: https://ec.europa.eu/taxation_customs/vies/?locale=en

To validate your VAT number for Reverse-charge, please contact your accountant or tax consultant.