VAT

[Maria15]

Do we need to pay VAT or airbnb income? Is there a threshold (i.e. 37.500€) over which VAT applies, or is there always no VAT on lettings in Ireland?

[Dardo0]

You don't pay VAT on rental income.

[Geno0]

Hi Dardo.
I found your reply in relation to VAT in Ireland . Are you sure you don't pay VAT on rental income in Ireland? I have a friend who owns the properties in Dublin and I was planning to rent one from him and then sublet it for the airbnb guests and my friend said to me that I will need to pay VAT so I am kind or confused now . Do you by chance know under which circumstances would VAT apply or not?
Thank in advance.

[Liam0]

You are mixing up VAT (value added tax) and income tax.
Income tax is what you need to be worried about. You will more than likely have to pay 52% tax on profits made. It all depends on you having a job etc.

[Paul60]

This is quite interesting.  I wouldnt be so sure that VAT is not charged on Airbnb income.

Note it is charged on hotel bookings & BnB income. 

Has anybody here in the community received clarification that VAT does not apply above the threshold?

[Sarah225]

VAT seems to be being deducted automatically by Airbnb, but in the UK you have to register for VAT and I am not registered because I do not fall into their criteria for registration.  So, how do I get the money back?

[Pete2]

I live in England, airbnb add 20% to service fee which is small. My question was do I have to pay VAT on the room price?

it says on airbnb uk site

VAT is payable on Airbnb’s service fee (collected by Airbnb at the time of booking so nothing for you to do here) but no VAT is currently chargeable on rent in the UK. If such a time comes the government decides that money earned from Airbnb is no longer rent but a service fee then VAT may become payable.

"but no VAT is currently chargeable on rent in the UK"

would seem to cover it, if its correct?

Peter

[Richard152]

Hi Pete,

I am also searching for the right answer.

I am just about to reach the UK limit for registering for VAT, and I'm getting conflicting answers.

AirBnB say that they pay the vat and others say that I must register and pay the vat.

Did you find the concrete answer?

Regards,

Richard

[Fleur5]

We have just had to go VAT registered as we have exceeded ther UK limit. I cannot seem to get a clean answer from AirBnB with regard to cahrging the VAT eliment. We host on Holiday Lettings and Homeaway and theirs is easy. They advise they charge the VAT at booking stage. We have had to alter our rates on these platforms to a nett amount so the client pays the right amount and will not be charged the VAT twice. Ie room rate £150.00 per night so the client will pay £180.00. If we put it at £180.00 the client would pay £216.00. I cannot find any information from AirBnB and their customer service team seem not to know as well.

[Lee174]

There is no VAT on residental rent income.  Hosts can use the rent-a-room tax allowance in the UK, up to 7K or so.

If you operate AirBnB as commercial let - Furnished Holiday Let (FHL) then VAT applies, but not below income of 85K per year.

If you lettings business has annual sales above £85,000 in the UK, you must register for VAT and add VAT to your prices.

You can then also recover VAT on purchases for your business (phone, computer, repairs, consumables etc).

If you wish to simplify the VAT process, choose the fixed rate scheme which avoids all the paperwork.  Instead of paying 20% to the taxman, you pay a lower figure like 10.5%, which is generous.  An IT business for example, would have to pay 19.5% (almost all the VAT).  The % is different for each industry sector, and the govt recognises FHLs use a lot of stuff.

Quite separately, AirBNB as a business itself, must charge VAT on its service fee.  This is unrelated to you, the host.

For most people, letting a room on AirBnB would be best as an individual (sole trader), as there is no tax and simple accounting.  for multiple properties a Ltd Co. to let your Airbnb rooms would make more sense, as you can recover VAT on your purchases, use the dividend allowance and so forth.

[John1596]

i just checked on the irish revenue pages.  I'm retired, and i dont need to register for vat if my turnover is below 37,500 euros.

[Natasa21]

Hi! Can anyone explain me how I am supposed to identify the comission amount of Airbnb? Because I rent apartments in Croatia and I am oblighed to pay 25 % VAT on the comission of any online travelling agency. I didn't get any invoice for the previous month fromAirbnb with the comission amount shown. I don't want to violate the provisions and to be punished. What am I supposed to do? How can I find out the comission amount?

Makarska, Croatia, Apartments Mihic, Natasa Mihic

[Ana1136]

@Natasa21  you can see the details of every payout when you click the reservation. Also you can see your payout history. I don't know about the laws in Croatia, maybe @Branka-and-Silvia0 can give you some advice, I can't think of any other host from Croatia 🙂 

[Natasa21]

Ana 1136, thanks a lot for being so helpful! Have a nice day!

☺️

[Jackie17]

Hi

I am renting out an apartment in Spain where I live permanently.  I do not understand why I am being deducted VAT from my payments.  If I need to pay a fee it would be Spanish IVA which Airbnb do not collect and which would need to be passed on to my guests.  Anyone offer any explanation?