What is VAT?

Understanding VAT

Value Added Tax, or VAT, is a tax on the supply of goods and services. 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. The VAT amount is therefore based on the total commission fees for a booking.

Holidu is required by law to charge VAT on services. If a booking is modified, VAT adjusts to reflect the change.

How VAT Appears in Your Invoice

The VAT deduction is detailed in each booking invoice. For any individual fiscal questions, 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, 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.

VAT Exceptions (Spain)

Certain Spanish territories, such as the Canary Islands, are outside the EU VAT area.

What this means for hosts located there:

• 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 — and reach out to your local Holidu Host Support team if you have questions about how this is reflected in your account.