Do I need to pay tax or VAT?
Your tax commitments are based on the country in which you’re set up as a business. In the UK, you’ll need to pay VAT, and in some US states you will need to pay additional taxes associated with renting out your home. To check your current local tax settings, go to Taxes and fees.
If you are unsure what to select on the tax settings page then you should contact an accountant, solicitor or legal advisor who will be able to assist you.
If you live in the UK then you are eligible to pay UK VAT, unless you state you are in business and have a VAT registration number. VAT is 20% and is charged only on the 3% fee we take. VAT is not calculated from your rental rate.
To check your VAT tax settings, go to My account > Tax
Should I charge guests more to cover taxes I pay?
If you wish to include your VAT charge in your rates, this is at your discretion. However, as the commission fee is taken as a percentage, this will increase as an effect of higher rates.