Information for Withlocals hosts – Taxation and value added tax
Withlocals is an online marketplace platform where demand (guests) meets supply (local hosts)
When a guest makes a booking through the Withlocals platform, two contractual relationships are established and therefore should be recognized for taxation and/or value added tax purposes.
Contractual relationship #1: between Withlocals and the host (you)
Withlocals provides hosts with a service by enabling them to connect and offer their services to guests. By using Withlocals’ services, a direct contractual relationship is established between Withlocals and you (the host) in which Withlocals provides a service to you as a host for which you will receive an invoice from Withlocals. On this invoice, value added tax will be calculated depending on several variables, E.g. your country, if you are a private person or a business. Any amounts received by Withlocals from the guest on your behalf will be transferred to you after deducting any invoices you have to pay to Withlocals.
Contractual relationship #2: between the host (you) and the guest
In addition, as a host, you offer your services (experiences, tours and activities) to the guest and a direct contractual relationship is established between you (as a host) and the guest. As a host you are responsible to hand the guest a receipt/invoice after the services have been performed and to make sure all applicable taxes (sales tax, value added tax, any other (local) tax) are calculated.
By offering your services as a host to the guest, you earn income. You are solely responsible for paying any income tax, value added tax, corporate income tax or any other tax to the respective tax authorities applicable in your country.
Other important notes
If you purchase certain goods and services from external parties (E.g. food, entrance tickets, etc..) to incorporate into your services performed for your guest, normally these expenses would be deductible from the income you earn, thereby reducing your tax bill.
For your tax declaration it is important to save all receipts and invoices you receive and issue regarding the services offered to you by Withlocals , the services offered by you to the guest and any expenses paid.
Please make sure you take a close look at the local taxation and value added tax rules and guidelines in your country. It is your own responsibility to declare and pay all relevant taxes on the services you perform for the guests.