26 Replies Latest reply: Oct 5, 2018 12:30 PM by hill5185 RSS

    HomeAway tax questions

    harrytammie Contributor

      I've read I think all the discussions regarding this new to me subject, but The answers I haven't found are :

      1 For split payments, which is almost all, they're collecting the entire tax from us or the guest before full payment is made and/or the stay is complete?

      2 Is this legal?

      3 Isn't this going to **** off the guest to see a lodging charge of lets say $140.00 plus a booking fee from vrbo, as much or more, and the deposit to owner is only $200.00?

      4 In NY sales tax dept is the most brutal breed, and they would say the owner is responsible for taxes and want proof that the correct dollar amount was paid or the owner owes it. How is this verified?

      Thanks

      Harry

        • Re: HomeAway tax questions
          harrytammie Contributor

          And  do I have to change my tax settings on my dashboard?

          • Re: HomeAway tax questions
            feibus CommunityAmbassador

            Have you received the first part of a split payment and looked at the payment spreadsheet you can download?  If so, mind posting it and telling us where your VR is located?

            • Re: HomeAway tax questions
              harrytammie Contributor

              Was really hoping an admin would answer the question. Phone calls to vrbo result in incorrect or no explanation

                • Re: HomeAway tax questions
                  hill5185 CommunityAmbassador

                  Weighing in on the CS comment / you've mentioned your frustration in another post. homeaway_community_manager Erinn is our community fearless leader. Make the call to CS and if you can not resolve the issue ask for the case to be escalated. You'll receive a "case number" and perhaps Erinn can help you. Keep in mind "account specific" questions are best handled by CS.

                  • Re: HomeAway tax questions
                    homeaway_community_manager HomeAway Employee

                    Hi harrytammie,

                     

                    Our apologies for not having commented yet. This question has been escalated and when we have an answer we'll post it. Thank you.

                     

                    Erinn

                    HomeAway Community Manager

                      • Re: HomeAway tax questions
                        hill5185 CommunityAmbassador

                        Erinn,

                         

                        Is HA using the same procedure to collect and remit sales tax for all required FL counties? Collecting the state portion and owner's responsible for any local, county requirements?

                         

                        TY

                          • Re: HomeAway tax questions
                            homeaway_community_manager HomeAway Employee

                            Hi hill5185,

                             

                            Unfortunately no, every county has it's own set of tax laws/regulations so it varies from county to county.  That's why when we make posts about it we specify the county. Thanks!

                             

                            Erinn

                            HomeAway Community Manager

                              • Re: HomeAway tax questions
                                hill5185 CommunityAmbassador

                                Good to know

                                  • Re: HomeAway tax questions
                                    harrytammie Contributor

                                    Thanks for the help. As I struggle through adding a new listing to my current account, an important yet unanswered question is that with vrbo collecting the local tax and paying it, do I need to change my tax settings? Oct 1st is dangerously close.

                                    Harry

                                      • Re: HomeAway tax questions
                                        harrytammie Contributor

                                        Ok. So to clarify 1st hand on some of my previous questions.

                                        Yes, I can use a different bank deposit account for added property to my account.

                                        Yes,I can use a different contact name and number to administrate the property.

                                        Yes, I can use a separate email account. My main account still gets the correspondances.

                                        Yes, They wanted to hold the first 30 day deposit. I called and they said theyd change that setting in about 10 days. Probably will still be 30 days before I get my first deposit.

                                        Yes, Should have just started a whole new account.

                                        Vrbo sends me to yapstone, yapstone sends me back to vrbo still on the question regarding since theyre now collecting separately local taxes, do I change my tax setting.

                                        TOMORROW is October 1st when this takes effect and NOBODY has answered the question regarding tax collection. Guess who gets the aggrivation???

                                          • Re: HomeAway tax questions
                                            hill5185 CommunityAmbassador

                                            I'm not clear why you want to start a "new" account?

                                             

                                            Hope I'm not stepping out of line- from what I understand and have read on this forum and others when the listing site collects the state tax owners are still responsible for any "local" taxes. The tax rate on the listing reflects monies the owner is responsible for collecting and remitting.

                                             

                                            The benefit of keeping all the business in one account with centralized email is not as much about VRBO/HA it's more about ease of maintaining accurate business records. Our bank account is a corporate account owned by the business. Keeps everything simple when producing statements, tax receipts and balance sheets.

                                             

                                            VRP/ Yapstone has nothing to do with the fees/taxes collected it's not in their wheelhouse they simply process transactions (credit card processor). When we added a second property and applied for early payments there was a 7-10 day processing stipulation however it didn't take that long to be approved. I believe the approval is based on our current history with no issues with our banking institution etc.

                                             

                                            Hope this resolves soon for you -

                              • Re: HomeAway tax questions
                                homeaway_community_manager HomeAway Employee

                                Hi harrytammie,

                                 

                                Here is our response to your questions:

                                 

                                In jurisdictions where HA is obligated to collect and remit lodging-related taxes (listed here), those taxes are collected with the traveler’s first payment.  This is legal.  In these jurisdictions, HomeAway/VRBO is responsible for verifying tax rates and rules, and does so with proprietary software and a dedicated tax team.  There may be additional taxes that apply to your listing that HomeAway/VRBO is not obligated to collect and remit. If you need to collect additional taxes from the traveler, you will need to do so separately, and it is advisable to note this in the listing description so the traveler knows what to expect.

                                In jurisdictions where HomeAway/VRBO is not obligated to collect and remit any of the taxes, owners should set their own tax settings, including the tax rate and the amounts subject to tax.  Tax settings are accessible in the Owner Dashboard.  In these jurisdictions, it is the owner’s responsibility to verify that the tax rate is accurate.  For split payments in jurisdictions where HA is not obligated to collect and remit taxes, the tax rate entered by the owner is applied to each traveler payment.

                                 

                                Thank you!

                                 

                                Erinn

                                HomeAway Community Manager

                                  • Re: HomeAway tax questions
                                    harrytammie Contributor

                                    So, The answer I didn't get from here, but the answer I got from a call in was vrbo will adjust my tax rates accordingly .So I didn't change anything.

                                    I have now received my first booking in October and VRBO not only collected JUST the local tax, but didn't collect the state tax on my behalf. And to add to the problem, the charged $100.00 a ight LESS than my posted rate.

                                    WHAT GIVES?

                                    Do I change my rate in my tax setting or don't I? How are you going to go about adding the state tax to the traveler total and adjusting the quote?

                                      • Re: HomeAway tax questions
                                        harrytammie Contributor

                                        I CAN'T change any tax setting. VRBO has blocked it. Where does the state tax get collected now Erinn???

                                          • Re: HomeAway tax questions
                                            harrytammie Contributor

                                            Would an admin please respond. If I read your reply right I have to contact travelers now and charge them separatly? That’s stupid!

                                            and what’s with Vrbo not charging the correct rate for travelers?

                                            I Really wish someone would call

                                            me. Calls into Vrbo one gets an intern that can’t help because they can’t comprehend what your saying. And it takes weeks to get an answer here.

                                              • Re: HomeAway tax questions
                                                feibus CommunityAmbassador

                                                Have you tried calling CS between 9 and 5 Central Time?  CS has tools to look at your dashboard and admin pages just like you can see them, so you can verbally talk them through to get to the page in question.  And if you're not satisfied, you can ask that the call get escalated to the next level of support.

                                                 

                                                Waiting for a response from our beloved moderator, homeaway_community_manager, for your specific issue might not be the best strategy.

                                                  • Re: HomeAway tax questions
                                                    harrytammie Contributor

                                                    I've called several times. After three completely incorrect answers from the front line interns, yesterday I spoke to someone who finally understood how vrbo charged both taxes and remitted the money to me to split and send to both taxing entities, and now they only collect one of the taxes and remit it on my behalf. He finally understood the other tax is not addressed, collected , or is there a place to charge the traveler. The "correct answer" I received from Erinn said I need to inform and separately collect the state tax from the traveler. I'm not sure this is correct. If it is, I can't believe it and I wonder how other owners are handling this. After an instant booking I have to go back to a traveler and say, "by the way, you owe me another 7%????