Sunday, February 1, 2015

what is vat

A type of consumption tax that is placed on a product whenever value is added at a stage of production and at final sale. Value-added tax (VAT) is most often used in the European Union. The amount of value-added tax that the user pays is the cost of the product, less any of the costs of materials used in the product that have already been taxed.

Valued-added tax, or VAT, is a tax assessed on the supply of goods and services. Read more about where to find your VAT invoices.

Airbnb charges VAT on its service fees for users from the European Union, Switzerland, Norway, Iceland, and South Africa.

Guests

VAT is charged at the time of payment and is based on the total guest fee for a reservation. If you alter your reservation, VAT adjusts to reflect any change in the service fee.

For reservations booked between May 1, 2014 and December 31, 2014, Airbnb will calculate VAT based on the Irish VAT rate of 23% for all guests in the EU, regardless of country of residence. This change is related to Airbnb’s new international headquarters in Dublin.

On January 1, 2015, a new EU tax law takes effect. At this time, Airbnb will go back to calculating VAT according to the rate in guests' local country of residence, based on the selection when you enter payment information.

Hosts

VAT is deducted from your payout and is based on total host fee for a reservation. If you alter your reservation, VAT adjusts to reflect any change in the service fee.

For reservations booked between May 1, 2014 and December 31, 2014, Airbnb will calculate VAT based on the Irish VAT rate of 23% for all hosts in the EU, regardless of country of residence. This change is related to Airbnb’s new international headquarters in Dublin.

On January 1, 2015, a new EU tax law takes effect. At this time, Airbnb will go back to calculating VAT according to the rate in hosts’ local country of residence, based on the selection when you add a payout method.

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