Tax handling for Vrbo Partner reservations depends on your Merchant of Record setup, your property's location, and the taxes that apply to the reservation.

This article explains how taxes are collected, when tax remittance may be available, and what responsibilities remain with the host.

At a Glance

For Vrbo Partner reservations:

Tax handling depends on your Merchant of Record setup
Tax remittance support is only available when Hospitable is the Merchant of Record
Hosts using Stripe are always responsible for filing and remitting applicable taxes
Tax remittance availability varies by jurisdiction and tax type
Additional local filing requirements may still apply

A reservation breakdown in Hospitable showing accommodation charges, fees, and taxes

How Taxes Are Handled

Tax handling for Vrbo Partner reservations depends on:

Your Merchant of Record setup
Your property's jurisdiction
The taxes that apply to the reservation

The way taxes are collected and remitted differs depending on whether Hospitable or Stripe processes guest payments.

If Hospitable Is the Merchant of Record

When Hospitable is the Merchant of Record, tax collection and remittance support may be available for supported jurisdictions and tax types.

Depending on the jurisdiction:

Taxes may be collected and remitted on your behalf
Taxes may be collected and included in your payout for you to remit
Additional local filing requirements may still apply

Tax remittance support is only available when Hospitable is the Merchant of Record and may vary by jurisdiction and tax type.

See State list where and which taxes we remit here.

If Stripe Is the Merchant of Record

When Stripe is the Merchant of Record, all taxes are treated as pass-through taxes.

This means:

Taxes are collected from the guest as part of the reservation
Taxes are included in your payout
You are responsible for filing and remitting taxes to the appropriate authorities

Hospitable does not remit taxes on your behalf for reservations processed through Stripe.

If you use Stripe as the Merchant of Record, you are always responsible for filing and remitting applicable taxes.

Determining Your Tax Responsibilities

Before relying on any tax workflow, verify:

Which taxes apply to your property
Whether Hospitable currently supports remittance for those taxes
Whether any local filing requirements remain

Tax obligations vary significantly between jurisdictions, and support may differ by tax type.

If you are unsure about your obligations, consult a qualified tax professional.

If Vrbo Previously Remitted Taxes

Some hosts may be located in jurisdictions where Vrbo previously handled certain tax obligations.

After switching to the Vrbo Partner integration, tax handling may change depending on:

Your Merchant of Record setup
The taxes involved
Whether tax remittance is currently supported

If you previously relied on Vrbo to remit taxes, review your tax obligations after switching to the Vrbo Partner integration.

Tax Reporting

Reservation and payout records reflect the financial activity associated with the booking, including taxes collected from guests.

You can use your reservation and payout records to help reconcile tax-related transactions.

Changes to Tax Coverage

Tax remittance coverage may expand over time as additional jurisdictions and tax types become supported.

As coverage changes:

Tax workflows may be updated
Remittance responsibilities may change
Additional tax support may become available

Hospitable sends an email notification when tax remittance becomes available for a tax that applies to your property.

If your property uses Hospitable as the Merchant of Record, you cannot opt out of supported tax remittance once it becomes available.

If you prefer to remain responsible for filing and remitting taxes yourself, you can switch the property to Stripe as the Merchant of Record. Any change will apply to future reservations after the switch and will not affect existing reservations.

Always review the latest tax documentation before making assumptions about tax handling in your jurisdiction.

Frequently Asked Questions

Are taxes included in the guest's reservation total?

Yes. Applicable taxes are collected as part of the reservation charges presented to the guest.

Does Hospitable remit taxes for all Vrbo Partner reservations?

No. Tax remittance support is only available when Hospitable is the Merchant of Record and only for supported jurisdictions and tax types.

What happens if I use Stripe as the Merchant of Record?

All taxes are treated as pass-through taxes and included in your payout. You are responsible for filing and remitting applicable taxes.

How do I know if taxes are being remitted on my behalf?

This depends on your Merchant of Record setup, the jurisdiction, and the tax type involved.

Review the current tax remittance documentation and Properties → Pricing → Taxes page

Does switching to the Vrbo Partner integration change my tax obligations?

It may. Tax handling can differ from other Vrbo payment models depending on your Merchant of Record setup, the taxes involved, and the property's location.