To help you stay compliant with local tax laws, Hospitable runs a quarterly reporting process for pass-through taxes—these are taxes (like occupancy or sales tax) that you collect from guests and are responsible for paying to your local tax authority.
Hospitable handles payment processing for your reservations as the Merchant of Record, and we’re required to maintain documentation that shows these taxes are being properly handled. This quarterly process ensures:
You get a clear record of all pass-through taxes paid to you.
We meet our own regulatory obligations.
Your payouts continue smoothly.
Quarterly Tax Compliance Affidavits
If you receive pass-through taxes through Direct, you'll be asked to sign a Tax Compliance affidavit each quarter.
A tax affidavit is a short confirmation that you’ve paid the required taxes. It’s quick and easy to complete online.
This process is outlined in Section 3.4 of the Direct Premium Seller Terms of Service.
How it works
Affidavits will be generated and sent 30 days after the close of each calendar quarter.
Each affidavit will include a summary of all pass-through taxes paid out to you in the quarter, broken down by tax type and total amount.
You can review and sign your affidavit by navigating to Direct > Taxes > Documents.
You will have 30 days to sign the affidavit once it is issued. If the affidavit is not signed within that window, your payouts may be paused until it is completed.
If you notice an error or disagree with the totals, contact our support team right away. We’ll help you investigate and resolve it before the signature deadline.
Reconciling the totals on your affidavit
A CSV report will be provided for each affidavit to breakdown the totals from the document by transaction. The CSV report includes:
Reservation code
Check-in and check-out dates
Transaction date - the date the taxes were paid out to you)
Transaction type - reservation, cancellation (for taxes on cancellation fees), or adhoc charge
Jurisdiction name
Tax description
Amount