What is VAT?

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

Why does Holidu charge VAT?

Holidu is required by law to charge VAT on services provided. When a booking is modified, VAT adjusts automatically 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 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 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.