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How Taxes are handled in Direct
How Taxes are handled in Direct

Hosts are ultimately responsible for their own tax compliance

Andrew Schorr avatar
Written by Andrew Schorr
Updated over 2 months ago

⚠️ Unless your properties are specified in the table below, you are responsible for filing and remitting your taxes to the appropriate jurisdiction in a timely manner.

Direct Basic taxes

When you select Basic as your plan, you'll need to add any fixed-rate and percentage-based taxes you need Hospitable to collect from the guest from either the Taxes section in Preferences or the Taxes section in Property details < Pricing. These fields will only be visible after you set your Direct plan to Basic.

All of the taxes you add will be visible on each of your properties' Pricing < Taxes section. From that page, you should check all taxes that are applicable to that specific property.

Based on the taxes you input here, Hospitable will calculate the tax amount for each booking request and collect it from the guest if the booking is accepted. You must specify which charges each tax applies to (eg. nightly rate). You should also specify the maximum applicable length of stay. You will receive that tax amount in your Stripe payout and Hospitable will report the amounts in your Metrics Taxes reports.

Depending on your location, you are generally required to file and remit those amounts to the appropriate jurisdiction in a timely matter. We recommend that you keep records of all of your tax filings and remittances.

Direct Premium taxes (USA)

With Premium, you won't need to setup anything for your taxes to work. For USA properties, Hospitable works with a tax services provider to calculate all applicable sales and lodging taxes based on the address of each of your properties. You can check the taxes we collect on the Property < Direct page after selecting the Direct Premium plan.

The initial quote we prepare for guests shows them the Total before taxes (USA only), to put your direct booking offering on the same footing as most other OTA channels when guests are price shopping. If the guest proceeds to the next step, we then show them estimated taxes, which are generally within a few cents of the actual taxes. On the final page of the booking flow, on the Review & Confirm screen, we will make a live tax calculation to confirm the correct amount and show that to the guest, as well as a drop-down so they can view which taxes will be collected.

We are in the process of starting to file and remit taxes for Direct Premium hosts in the USA. For all taxes which Hospitable does not remit on your behalf, you are responsible for filing and remitting those taxes that we collect and pass through to you in a timely manner (most jurisdictions are monthly filings). Our goal is to take as much of the filing and remitting burden off of you as possible going forward.

Where Direct Premium files and remits taxes

Properties in

Booked after

Sales tax

Lodging tax

Arizona

31 Aug 2024

all

all

Maine

31 Aug 2024

n/a

all

Michigan

31 Aug 2024

state-only

pass-through

Tennessee

30 Jun 2024

all

all

Texas

31 Aug 2024

n/a

state-only

Washington

31 Aug 2024

all

all

For all other locations, Hospitable will collect and pass through all of your taxes with your payout, reporting the detailed transactions in your Metrics Taxes reports. You are required to file and remit those amounts to the appropriate jurisdiction in a timely matter. You are required to keep records of those payments and Hospitable may require you to sign affidavits attesting that you have done so.

Direct Premium taxes (UK, AU)

For Australia and the UK, taxes are inclusive of your booking amount and you will need to file with the appropriate authority based on your revenue. Hospitable does not file and remit taxes for you.

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