BES islands and VAT charges

[Peter1354]

Recently Airbnb changed their policy for Bonaire, an island included in the Dutch Kingdom, so the host pays the service fee.

However in doing so, I think Airbnb made a mistake. In the EU ~21% VAT is charged on the service fee, which applies to the EU countries. Bonaire, however is not a part of the EU and therefore exempt from the VAT charge.

The BES islands are Bonaire, St. Eustatius, and Saba. Until 10/10/10 these islands were a part of the Netherland Antilles when this entity was dissolved. The BES islands are now a part of the Dutch Kingdom, listed as a special municipality, but not part of the Schengen area, the EU or subject to EU VAT charges.

I have opened a ticket with the help department, but they seem uninterested. So I thought I would throw it open to the community, although this is a little obscure, it does start to amount to a good deal of money basically being taken without authorization by Airbnb.

Does anyone have any thoughts on who I may contact within Airbnb to get some resolution?

Cheers,

Peter

[Emiel1]

@Peter1354 

I understand you moved recently to "host only"  fee now ?

Were you also charged VAT in the "old" fee system (3% host fee + VAT) ?

The VAT percentage is not dictated by the EU, but is set by each individual country. The 21% you mentioned is a VAT rate charged in The Netherlands.

I learned from Internet  there is a similar tax, called ABB, on Bonaire ?

But it seems Airbnb is making a mistake by charging the Dutch VAT rate to a host on BES islands.

[Peter1354]

@Emiel1 Thank you for your note.

Under the previous arrangement we, as hosts, paid 3% without VAT.

ABB is 6% on Bonaire for services, however the island has a TOURIST TAX of $5.45 per person, per day for anyone over the age of 13 staying on the island overnight. This tax is collected and submitted to the local island government on a monthly basis. Residents of Bonaire, St. Eustatius, Saba, Aruba, Curacao and Sint Maarten are exempt from this tax.

Regardless if the VAT is set by the EU or The Hague it should not be added to the service fee for Bonaire.

Airbnb is making a mistake by collecting this money from hosts on Bonaire, St. Eustatius and/or Saba.

[Emiel1]

@Peter1354 

IMO Airbnb should take this issue more serious. I assume it will affect all host on BES, so maybe more hosts should complain and/or use the feedback option: Airbnb Feedback 

As you mentioned: on the old 3% fee system Airbnb also did not charge you VAT, so why change policy ?

May i ask how much fee you are charged now ?

I heared precentage of 14% , if so this is increased with 21%, making it almost 17 % ?

I also wondered: in the "old system" guests were charged a Guest Service Fee, i assume it was (for the guest) subject to VAT ?

[Peter1354]

@Emiel1

I have no idea how the old system worked for guests when it comes to VAT. I would assume that VAT would be charged in the country of origin (where the reservations originated)?

Regardless of how it used to work, it is not working correctly now. You are right, Airbnb should take this seriously, and remedy the situation quickly.

As I signed early to switch I currently pay 14% (which will go to 15% on 1/1/21), and with the VAT it is actually a rate of ~16.8%, which is what caught my eye and why I made the post. 

I have opened a trouble ticket with Airbnb and waiting on a resolution. However, in my mind Airbnb is not moving fast enough to correct this. I will also post something on the feedback link.

Thank you for your help.

[Peter1354]

@Emiel1 

This gets even stranger. The VAT is NOT being collected by the Netherlands, but rather the UK - go figure? I was born in the UK, but doubt this the reason for collecting VAT and donating it to Boris. 

Something seems rather a miss at Airbnb. 

I thought I would keep you updated on my progress....which I must admit has been somewhat delayed by rolling on the floor laughing.

[Emiel1]

@Peter1354 

It explains at least the percentage you mentioned in earlier post (16,8), as VAT in UK is 20%.

Airbnb headquarter for Europe is located in Dublin, but that is Ireland and VAT there is 21%.

Previously payouts (to hosts in the Netherlands and probably other EU countries) were managed by an Airbnb office in London, but recently  payouts are transferred from an account in Luxembourg.

Although i believe the "Airbnb financial department" is still in London, so maybe that explains UK VAT is added to the service fee ?