Property owners and managers are required to pay lodging tax for renting out a room or property in certain states or localities. In some regions, lodging tax may also be known by another name such as: stay tax, occupancy tax, room tax, sales tax, tourist tax, or hotel tax.

Lodging tax requirements vary by city, county, region, state, and country. Lodging taxes can be levied on the cost of the stay or a per night or per person basis.

Property owners and managers are responsible for any taxes associated with renting a property, except in jurisdictions that require us to collect and remit lodging tax for online bookings. For a list of these jurisdictions, check out: What stay taxes/lodging taxes do you collect and remit? 

We're offering solutions to simplify how you manage the taxes you collect and pay to your tax authorities. You'll receive an email when these solutions become available in your jurisdiction, and you'll also see the options available on your tax settings page. Check out: How can I manage my lodging taxes? for more information.

Topics covered in this article:

How we collect and remit lodging tax
How to check if we collect and remit taxes for your property
How taxes are displayed in your dashboard
How to collect and remit additional taxes
Rental amounts that are subject to lodging taxes
Information we provide to jurisdictions
How to check what's been paid to your jurisdiction
Tax returns
Information travelers see about taxes




 

How we collect and remit lodging tax

We collect and remit lodging tax in required jurisdictions when rental bookings and payments are made on our platform. We’ll let you know when we start to collect and remit lodging tax in your area.  
 
In jurisdictions where we are liable, we collect lodging taxes from the traveler when they book, and we then remit the taxes to the appropriate taxing authority either monthly, quarterly, or annually.

Every property owner and manager is responsible for understanding and complying with the laws and regulations applicable to their property listing.

You're also responsible for collecting and remitting lodging taxes when we're not liable to do so, including when the following circumstances apply:
  • Your property was booked prior to and including the day before we began collecting and remitting lodging tax in your property's jurisdiction.
  • The booking is not made by using our online system
  • You use external software to integrate with our online system.
 

How to check if we collect and remit taxes for your property

To find out if we collect and remit lodging tax for a specific property:
  1. Log into your account.
  2. Click Calendar in the left navigation menu
  3. Click Rates.
  4. Click on the gear for Rates settings.
  5. Click Taxes. You'll find which taxes we collect and remit for your listing.

If you don't see any lodging taxes listed, that means we aren't collecting this tax and you remain responsible for collecting and remitting taxes from your guests.

To see a full list of jurisdictions in which we currently collect and remit taxes, click here.


How taxes are displayed in your dashboard

If we're collecting and remitting taxes on your property, there will be one or two sections shown under taxes:
  • The first section displays taxes we're obligated to collect from travelers and remit directly to your jurisdiction.
  • The second section displays taxes for which you're liable. You may opt to have those taxes collected from travelers and sent to you to remit to your jurisdiction. This section only appears in select jurisdictions.  We'll monitor the applicable tax rates for you so you can remit the proper amount of tax to your jurisdiction.
By continuing to accept bookings, you agree that you are registered as a taxpayer, and will remit any tax sent to you to the appropriate taxing authorities. Upon inquiry or audit by any taxing jurisdiction, we may require you to provide your tax registration number and documentation that you remitted all taxes to the appropriate jurisdiction.

You cannot opt out of our collection and remittance of lodging tax in jurisdictions where we are required by law to collect and remit or where we have an agreement with the tax authority.
 

How to collect and remit additional taxes

If we are collecting and remitting specific taxes for your property, it is possible that there are additional taxes for which you are responsible. We offer options for managing your taxes in select jurisdictions. However, if these options are not available in your jurisdiction, you'll have to collect this tax from your travelers separately. You can no longer add a tax through our tax settings page.

For more information about tax collection options, including a list of jurisdictions in which they're currently available, please visit: How can I manage my lodging taxes?

To collect additional taxes from travelers you can do one of the following:
  • Make an additional payment request for the tax
  • Collect that tax from traveler on arrival
  • Edit the quote to add the required tax and separately let the traveler know of the tax amount.
You'll then need to remit the additional collected tax to your jurisdiction.
 


 Rental amounts that are subject to lodging taxes

Each jurisdiction mandates different rules that determine what amounts are subject to lodging taxes.

Generally, taxes are applied to the rental amount (money or value) paid from the traveler, including any owner fees (like a cleaning fee or pet fee). Refundable damage deposits are generally not taxable but can become taxable in certain jurisdictions if the deposit is not fully refunded. Some jurisdictions require us to collect taxes on our service fee.

If your listing is located in North America, visit MyLodgeTax to learn more regarding the specific charges and fees that are taxable in your area.
 

Information we provide to jurisdictions

When a stay is booked and paid for through our platform in a jurisdiction where we're liable for lodging tax, we'll identify the amount of tax we have collected and will remit it to the jurisdiction.

This tax is remitted on a tax return filed with the jurisdiction under the taxpayer account of HomeAway.com, Inc.

Your name, your jurisdiction tax ID, your company name, address, and/or other details specific to your property will not be identified on the tax return filing because the tax information provided identifies HomeAway.com, Inc. as the taxpayer. The transaction details may be made available to the taxing jurisdiction upon audit and pursuant to the appropriate legal process.

If your jurisdiction contacts you and wants information related to taxes that we are collecting and remitting, please refer the taxing authority to us. You should check the reporting requirements for your specific jurisdiction(s) or consult your tax professional to avoid penalties for not reporting.
 

How to check what's been paid to your jurisdiction

This information can be found through the lodging tax report in your partner dashboard. To view this report, click Reservation manager from within your account, select Financial reporting, then click the Lodging tax tab. Note that you will only see the Lodging tax tab if you've had at least one lodging tax transaction on a prior booking.
 

Tax returns

You may still need to file a tax return after we begin collecting and remitting tax in your area. In many jurisdictions, you are required to submit a tax return for lodging taxes even if the amount of tax you collected is equal to $0. Additionally, if your property is listed on multiple sites, you may still have a tax filing obligation on reservations booked on other sites.

You should check the reporting requirements for your specific jurisdiction(s) or consult your tax professional to avoid penalties and interest for not reporting.
 

Information travelers see about taxes

Starting on the date collection and remittance begins, travelers will see a separate charge called ‘Lodging Tax’ on their quote, which will be added to the total amount they pay for their booking. 

If your traveler made a booking on our platform before the date we begin tax collection and remittance, but will check in after the date we begin tax collection and remittance, you remain responsible for collecting and remitting tax for that booking. We only collect taxes at the time of booking. If you have split payments, we collect all taxes at the time of booking, regardless of the payment schedule.

If your traveler asks you for a tax receipt, please direct them to the Service Fee invoice in the Payments detail area of the Vrbo app. Taxes are also shown on the traveler’s quote and payment confirmation. After the date we start collecting and paying tax, lodging tax amounts will be clearly displayed to the traveler.

If a traveler asks for a refund of the lodging tax, please contact our team or ask the traveler to reach out to us by clicking the Contact Us button below.