Simplified Pricing and Gross Earnings

Inna31
Level 3
Kailua-Kona, HI

Simplified Pricing and Gross Earnings

This is a question to those who have ever used Simplified Pricing, In US:  how does it affect  "Gross Earnings" number ?

Previously (original method of pricing) Gross Earnings included  3 percent of Airbnb host fees but did not include 14 percent of Airbnb Service Fee charged to a customer. 

What is it now?

Please, note, I am not talking about "Payout" or "Transaction History" but "Gross Earnings" tab. 

It is important because I would have to pay hefty (almost 18 percent)  local Hawaiian taxes applied to my gross earrings. 

 

2 Replies 2
Mike-And-Jane0
Top Contributor
England, United Kingdom

@Inna31 A similar issue exists in the UK where the higher gross earnings caused by simplified pricing could, for some people, put them over the VAT threshold. Sad that Airbnb do not mention these significant issues.

Agnieszka80
Level 2
Paris, France

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 and HIGHER TAXES!

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

Fortunately we can easily deactivate it here:

 

The ServiceFee structure: 

 

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