7 Replies Latest reply: Apr 24, 2019 1:07 AM by mahrud RSS

    Important Tax Update for our French Partners

    homeaway_community_manager HomeAway Employee

      This was sent to affected owners on 8/29/18:

       

       

       

      Lodging tax* will be collected and remitted by VRBO effective 15th September 2018.

      Dear Erinn,

      To assist our partners with tax compliance, VRBO will begin collecting and remitting lodging taxes for all online bookings. This means you are no longer obligated to do so as part of the checkout process on HomeAway, VRBO, or VacationRentals. If you accept a booking prior to the effective date above, you will still be responsible to collect and remit lodging taxes.

      More details:

      • Travelers will see the charge as Lodging Tax.
      • Lodging taxes are added to the traveler’s total amount paid.
      • For split payments, all lodging taxes are collected upon first payment.
      • You are liable for other taxes, including property tax, business tax, etc.
      • HomeAway will handle all refunds of Stay taxes it collects.

      CLICK HERE > to learn more about lodging taxes in our help page.
      CLICK HERE > to visit the official website of the French administration

      *Visit our help page above to view your jurisdiction’s specific lodging tax names.

      Thank you,
      The VRBO Team

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      Thank you.

       

      Erinn

      HomeAway Community Manager

        • Re: Important Tax Update for our French Partners
          pukkascott New Member

          Can you clarify whether HomeAway will take the whole amount of the tax de sejour or just half. A notification from the Tignes, France mayors office states:

           

          1 - For accommodations located in Tignes , the sites Airbnb, HomeAway or Homelidays,  only when they provide the online booking and payment service * , collect the visitor's tax from the hosts and return it to the City at the rate of unclassified accommodation, ie 0.83 cts per night . Therefore,  the classified accommodation  will have to pay the supplement corresponding to the tariff of their classification per night deducting the 0.83 cts collected by Airbnb,  Homelidays or HomeAid until 31/12/2018.


          What happens after 31/12/18 ?

          • Re: Important Tax Update for our French Partners
            margaret CommunityAmbassador

            rinaldomoon 

            I thought this would be of interest to you.

              • Re: Important Tax Update for our French Partners
                rinaldomoon Senior Contributor

                Thanks margaret

                 

                I am aware and know exactly what will be happening come Jan. 1, 2019.

                 

                Unfortunately I have received no further information from HomeAway (after the above notification) despite the tax authorities telling me that HA are well aware of "new" changes of what they have to do.

                 

                If HA do not collect correctly, the authorities tell me it is beyond my responsibility (I don't totally believe this!)

                 

                I will pursue this matter and keep track of anything HA does not do correctly but did say to the tax person that it is not my responsibility to do HA's accounting. They agreed.

                 

                But I will still be vigilant.

              • Re: Important Tax Update for our French Partners
                mahrud New Member

                I'm struggling to understand how you have implemented the French requirements for collecting "taxe de séjour". Translating the french text (Google translate) on the link that you have provided (see Translation in italics) I have a couple of questions:

                 

                1. As far as I can see the system only differentiates between three types of accommodation: Primary residence, Secondary residence, Hotel. What about the types of accommodation ? For example, a furnished apartment with a separate entrance within a house. In France this would fall into the category of "meublé de tourisme" (furnished tourist accommodation).
                2. Unless I am mistaken the system does not have the means to record the classification (unclassified, *, **, ***, ****, *****). Without this information you cannot establish the correct amount of taxe de séjour to charge.

                 

                Thanks in advance for your feedback

                 

                Translation of french text

                Municipalities can ask holidaymakers staying in their territory to pay a tourist tax. However, the municipality is authorized to exempt certain categories of holidaymakers.The tourist tax and the period during which it applies are determined by the municipal council of the municipality or the deliberative organ of the public institution of inter-municipal cooperation (EPCI). The department may, in addition, introduce an additional tax of 10% to the tourist tax. This additional tax is collected at the same time as the tourist tax.The tourist tax is due per person per night.As of January 1, 2019, the amount varies depending on the type of accommodation (hotel, furnished accommodation, camping, etc.)and whether the accommodation is classified or not.The amount of the tax must be posted with the landlord, the hotelier or the owner of the accommodation. It must appear on the invoice given to the holidaymaker. It is also available at the town hall or the tourist office concerned.The tourist tax must be paid by the holiday maker staying in one of the following accommodations:

                • palace,
                • hotel,
                • residence,
                • furnished tourist accommodation (meublé de tourisme) or holiday rental between individuals,
                • guest room,
                • holiday Village,
                • outdoor accommodation (camping, caravanning, marina, parking),
                • youth hostel.


                It is paid to the landlord, the hotelier or the owner who passes it on to the municipality. It can also be set to the professional who provides the Internet booking service on behalf of the landlord, the hotelier, the owner.Some holidaymakers may be exempt from the tourist tax, according to the decision of the municipality or the EPCI:

                • persons under 18,
                • holders of a seasonal employment contract employed in the municipality,
                • beneficiaries of emergency housing or temporary relocation,
                • persons occupying premises whose rent is less than an amount determined by the municipal council,
                • owners of a second home for which they pay the housing tax.
                  • Re: Important Tax Update for our French Partners
                    homeaway_community_manager HomeAway Employee

                    Hi pukkascott,

                     

                    You are correct that HomeAway does not currently collect property classifications (unclassified, * to ***** stars). We are actively working on this.

                    In the meantime and in the absence of such classification capability on the site, HomeAway is calculating and collecting based on the unclassified type (meublés de tourisme non-classés) and using 2019 rates and rules applicable to unclassified properties.

                    With the laws that came into effect on January 1, HomeAway is sole responsible for the accuracy, collection, and remittance of the stay tax (or taxe de séjour).

                    What this means is that

                    • In the instance where we may have under-collected, HomeAway will pay the difference out of pocket.
                    • In the instance where we may have over-collected, HomeAway will refund the travelers.

                     

                    If your property is a meublé classé, you don’t have anything to do for now. We will reach out to owners and property managers to collect the necessary information once it is available on the site.  

                     

                    Thank you.

                     

                    Erinn

                    HomeAway Community Manager

                      • Re: Important Tax Update for our French Partners
                        mahrud New Member

                        Hi Erinn,

                         

                        Whilst it's good to know that my customers will be refunded at some point, the current situation is bad for business as customers are having to pay up to 57% more for their stay tax than they should be. This may drive business away from Homeaway to organisations like Airbnb who have already updated their systems.

                         

                        As a Homeaway Property Owner I'm very disappointed that this has not corrected this yet.

                         

                        Regards,