Taxes for Direct bookings are handled differently depending on your Direct plan and property location.
This article explains how taxes are collected and who is responsible for filing and remitting them.
How Tax Collection Works
Taxes are calculated automatically for each booking and charged to the guest at checkout.
Taxes are based on property location and applicable rules
The final tax amount is confirmed before booking is completed
Taxes are included in the total paid by the guest
Direct Basic
With Direct Basic:
You configure your tax rates manually
Hospitable calculates and collects taxes from guests
Tax amounts are included in your payout
You are responsible for:
Filing tax returns
Remitting taxes to the appropriate authorities
Hospitable does not file or remit taxes for Direct Basic bookings.
Direct Premium
With Direct Premium:
Taxes are calculated automatically based on your property location
Hospitable collects taxes from guests
Depending on your location:
Taxes may be remitted by Hospitable, or
Passed through to you for filing
Tax remittance depends on jurisdiction and may not be available in all locations.
When Hospitable remits taxes on your behalf, it acts as the taxpayer of record. Taxes are filed in aggregate under Hospitable's name and taxpayer ID, hosts are not listed individually in the filing. You are not required to file or remit those specific taxes separately; Hospitable has satisfied that obligation on your behalf.
Types of taxes Hospitable may remit
State and local sales and use taxes
Lodging and occupancy taxes
Tourism, hotel-related, and special jurisdiction taxes
The exact taxes depend on your property location and applicable local laws. Review specifics at Properties → Direct → Taxes.
Where to Check Your Tax Setup
To review how taxes are handled for your property:
Go to Properties → Direct → Taxes
Check whether taxes are:
Remitted by Hospitable
Passed through to you
You can also view tax details in:
Reservation financials
Metrics → Exports → Taxes
Individual reservation financial details: go to Inbox → Select Reservation or Calendar → Select Reservation to see taxes labelled as pass-through or remitted
Year-end Annual Earnings Report: lists all payouts with taxes labelled as either pass-through or Hospitable-remitted
When You Are Responsible for Filing Taxes
You are responsible for filing and remitting taxes when:
Your location is not supported for automatic remittance
You are using Direct Basic
Taxes are marked as pass-through
In these cases:
Taxes are collected from guests
Paid out to you
Must be reported and filed by you
You are also responsible for registering with the appropriate tax authority if required in your jurisdiction. Hospitable will provide documentation on pass-through taxes to help determine your obligations.
Important Things to Know
Tax handling depends on your plan and location
Hospitable always calculates and collects applicable taxes
Remittance is only automated in supported jurisdictions
You may still have reporting obligations even with Direct Premium
You are responsible for compliance with local tax laws