As all Alojamento Local hosts know (although much fewer guests are aware!), Airbnb charges a service fee for every booking received on the platform. What some hosts may not know, is that there are two separate service fee models, and changes to this commission structure will be implemented in the next few days. Read on to see if it will affect you or not.
The two different Airbnb commission models are:
SPLIT FEE MODEL
- Here, the Host pays a 3% service for every confirmed booking, and the Guest pays a 12-16% service fee
- if you are on this split-commission model AND use any kind of property management software connected to Airbnb (we believe that there are currently very few cases like this), you will be automatically moved to the SINGLE FEE model on 27th October.
- if you use this commission model and DO NOT use property management software connected to Airbnb, there will be no change
SINGLE FEE MODEL
- With this model, the Host pays a 15% fee on all confirmed bookings, whereas the Guest pays no fee
- The hosts already on this commission model and also using connected property management software will be charged the new rate of 15.5% from 27th October.
- Hosts already on this model with no connected software will be charged the new rate from 1st December.
We would also like to take this opportunity to remind hosts of their fiscal obligations when receiving an Airbnb booking.
INVOICES
- Hosts should issue an invoice for the total amount of the booking, INCLUDING the host service fee, and even though the host only receives the net amount after Airbnb deducts the fee, and WITHOUT INCLUDING the service fee paid by the guest.
- Invoices for all fees may be downloaded by going to the reservation details on the Airbnb platform.
- If the host is registered for VAT, then the host’s NIF should be configured for intracommunity transactions to be included in the VIES system, and then re-entered in the Airbnb settings in the PTxxxxxxxxx format. If this is done properly, the host service fee invoice amount will not by increased by 23% VAT, but instead will use the reverse-charge mechanism so that Airbnb only deducts the amount with no VAT increase.
More information on the Airbnb Service Fee changes:
https://www.airbnb.co.uk/help/article/1857
