VAT on Rental Amount

Sonia438
Level 2
Felcourt, United Kingdom

VAT on Rental Amount

We are hosts and we recently noticed that Airbnb is automatically adding VAT to our rental amounts and charging guests.  I understand that they charge VAT on their service fees, but not on our rental amount - it adds 20% to the cost of the rental for guests and we are not VAT registered so we don't get that money and submit a return.  Does anyone know if there is a setting that we haven't set, or that we can change, to stop this?  We live in the UK.  Thank you for your help.

4 Replies 4
Jeff158
Level 10
Caernarfon, United Kingdom

@Sonia438 VAT is only charged on the host service fee, currently 3.5% inc vat.

Guest is also charged a service fee of up to 20%

Can you upload a screen shot showing the vat

Untitled4.jpg.png

 

Sonia438
Level 2
Felcourt, United Kingdom

Thanks for getting back to me.  I understand the vat in the service fees, but what I am seeing is the following

Rates.JPG

Our price is the £170 a night, but the guests are being charged £194 per night - a 20% increase on our price.  I don't recall seeing this happening before, so I am really confused about it.  I am assuming VAT because of the %, but it could be something we have set incorrectly.  I have checked our Pricing Settings and there is nothing there.

 

Thanks for your help

 

 

 

 

Beth221
Level 2
Brighton, United Kingdom

Hi Sonia

 

The guest amount looks like it is quoted in Euros - whilst you get paid in GBP - 194 Euro roughly correlates to £170 depending on the exchange rate! 

 

Not sure why it is doing that - perhaps your guests have booked in Euros as that is their currency? I've not noticed it doing it before 

Sonia438
Level 2
Felcourt, United Kingdom

Thank you.  I feel really stupid now :).  I have never seen that before and I completely missed the currency.  Thank you very much, very relieved