What is VAT?

VAT, or Value Added Tax, is a tax on the supply of goods and services. Holidu charges VAT only on its service fees and the channel's commissions, and the VAT is deducted from your payout. Because it is based on total commission fees, each booking's VAT is calculated on those fees.

How does VAT change if a booking is modified?

If a booking is modified, VAT adjusts to reflect the change. The VAT deduction is detailed in each booking invoice. For individual tax questions, please contact your accountant or tax consultant.

What is the 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.