Hi All,
I just recently learned about this new idea of Airbnb.
And it can even very well be, they are piloting this. Also because of the current pressure by the EU and other countries (The total guest price should be displayed upfront).
So I made a small calculation model, based on this.
As we also have to pay VAT & Taxes on ‘our’ gross rental amount.
To keep it ‘clean’, I’ve removed any additional charges such as VAT, Currency conversion rates, Etc. from my model (Related to the guests service fees). Because you can count on it. Airbnb will still add these on top of the new model (they won’t pay a dime themselves).
Most likely this is causing the 17.36%, as mentioned in the title if this thread.
So currently 12% (educated/calculated guess) guest services fees (without the additional charges, mentioned above).
Me paying 3% host services fees (For me: VAT does not apply to host service fees).
I have to pay 6% VAT, on my gross rental income. The remainder is then taxed at 8.75% (IRS).
So in the current situation, the guest would pay 112% of my gross rental price.
And I would be left with 82,775% of my gross rental price – as my net rental income (after deduction of taxes and Airbnb service fees).
In order to achieve the same net rental income, in the new situation (14% total service fees). I would have to raise the guest price with close to 3%. And Airbnb would gain over a staggering 7.6% on their service fee income!
The rest will end up in the pockets of the taxman (gaining another staggering 15.3%)
Now I understand, why the new option states: Recommended!
Thanks, But no thanks.
I thought all these wiz-kids at Airbnb HQ, had a master degree in mathematics?