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 earnings, as Holidu is required by law to charge VAT on service fees.

How VAT Works on Holidu

Holidu charges VAT on service fees, which is deducted from your payout. VAT is calculated only on commissions — both Holidu's and the channel's commissions. This means the VAT amount is based on the total commission fees for each booking.

When a booking is modified, the VAT adjusts automatically to reflect the change. You can view the VAT deduction details in each booking invoice.

VAT and Your Invoice

The VAT deduction is itemized separately in your booking invoice for complete transparency. For specific questions about how VAT applies to your individual tax 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) for validation.

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

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

Useful link: European Commission VAT Information Exchange System (VIES)

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 areas, VAT 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. Please consult your local tax authority or accountant for correct reporting and compliance.