What is VAT and how does Holidu charge it?

VAT (Value Added Tax) is a tax on the supply of goods and services. Holidu charges VAT only on its service fees, including both Holidu's and the channel's commissions. The VAT is deducted from your payout and detailed in each booking invoice. If a booking is modified, the VAT adjusts to reflect the change. For individual tax questions, please contact your accountant or tax consultant.

Reverse-charge (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 links: 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.