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. If Hospitable remits all of your taxes for you or if you have not had any Direct Premium bookings, you will not receive an affidavit.
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.
I'm a property manager and my owners are responsible for remitting their own taxes. How do I handle the affidavit?
If you're a property manager and your owners receive their payouts directly and/or are responsible for remitting their own taxes, you can still complete the affidavit.
We send the affidavit to the primary user on the account for simplicity. The document includes language that accounts for this scenario:
I acknowledge that taxes were collected in connection with my direct booking operations and included in payouts made to me or a related party. I understand that I, or the recipient of such funds, is responsible for determining, filing, and remitting any applicable taxes to the appropriate tax authorities, in compliance with all relevant laws and regulations.
The document does not require you to have submitted the taxes yourself, only that you acknowledge the funds included those taxes and that the responsible party is aware of their obligation.
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