I know that hotels have to include the VAT in the price, but when looking for a place to stay on VRBO it specifically says that taxes are not included. Does anyone know what the tax would be on that? If it's 20%, as it would appear, that gets steep fast!
Posted by
Glasgow, Scotland
1694 posts
Yes, if it is VAT then it will be subject to 20%.
Posted by
OP
Southern Maine
8 posts
So I guess the assumption is that these rentals are subject to VAT but that the owners are not subject to the requirement to include the VAT in the posted price?
Posted by
Glasgow, Scotland
1694 posts
Holiday accomodation is subject to VAT at the full rate of 20%, and if it was a UK based listing site I would expect, and the law would require, it to include the VAT. The problem is this sounds like because it is a US based site they have not included the VAT. I would double check with the site over which taxes still to be calculated and at what rate.
Posted by
OP
Southern Maine
8 posts
Thanks - that sounds right to me, too. It just has to be calculated into the budget!
Posted by
Oxford, United Kingdom
5466 posts
VAT will depend on whether the owner is registered for VAT or not. A person with a single property may well be below the annual threshold.
Posted by
Boulder, Colorado, USA
437 posts
I think when the site does not include taxe, it is very hard to compare prices because the tax rates vary quite a bit! A higher-priced place can end up being cheaper depending on added taxes.