New Airbnb Simplified Pricing

[Yiwei3]

Hi hosts, I just saw that Airbnb is giving people in the US an option to pick simplified pricing where you pay 15% and the guests pay 0.  They are saying it comes with increased bookings.  Has anyone had that experience?  From what I see, the nightly rates are higher but there's nowhere in search that explains there is no service fee.

[Martha66]

Is your airbnb connected to other managing tools? thats what solved for me...

[Martha66]

https://www.airbnb.com/account-settings/payments/service-fee

[Agnieszka80 · Accepted solution]

Well, I tried this Simplified Pricing here in France, it's horrible. First of all, it increases gross earnings by 15%+VAT, in my case: this additional 15% guest fee+VAT= 18% in plus of TOTAL Gross Earnings!!! And we pay taxes on gross eranings, which amounts to paying more taxes with Simplified Pricing. In addition, for those who are not subject to VAT because to small a business, this risks increasing your taxable turnover and falling into the obligation to pay VAT in addition to higher taxes!

Not to mention it DIDN'T bring me more bookings.

Fortunately we can easily deactivate it here:

The ServiceFee structure

https://www.airbnb.com/account-settings/payments/service-fee

[Martha66]

this saved me today! THANKS!!!

[Agnieszka80]

Happy I could help😄

[Christos142]

VAT is calculated after deducting expenses from your profits, correct? Therefore, if your gross earnings increase, so do your expenses. Under the standard pricing model, your expenses were 3% as Airbnb charged a 3% commission on your earnings. With simplified pricing, your expenses are now 15%, reflecting Airbnb's charges. Hence, the variance in VAT and your taxed income should remain consistent.

[Mike-And-Jane0]

@Christos142 Not in England they are not. Most people do not pay VAT as their turnover is below £85000 BUT VAT is charged by Airbnb on its service fees as their turnover is much larger. 

With a VAT rate of 20% hosts are about 0.5% worse off under simplified pricing.

[Agnieszka80]

My point exactly. In France there is no VAT for sales below €82800 for STRentals. With Simplified Pricing, turnover increases and when the €82800 limit is reached, you are obliged to register for VAT, obtain a VAT number and pay VAT, not to mention all the administrative burden.