Host service fees help cover the costs of processing guest payments. Airbnb charges a 3% service fee each time a reservation is completed. This is calculated on the reservation subtotal (before fees and taxes). Guests are also charged a guest service fee to cover the cost of running Airbnb.
To see what you are charged for the service fee, log into your Airbnb account. Go to your Transaction History. Then click on the reservation code next to the reservation you are curious about. Under Payout, you will see Airbnb Service Fee. Another way to view the service fee is under the message thread with the guest, if you click on Payments in your account.
Depending on the laws of the local jurisdiction, VAT may be charged on top of the service fee. The service fee will include VAT charges when applicable. Accommodation fees are charged to the guest directly by the host and may include local taxes such as VAT.
Value Added Tax, VAT, is a tax on the supply of goods and services. In Japan, Japanese Consumption Tax, JCT, takes the place of VAT. JCT is a tax assessed on digital services.
VAT and JCT are calculated according to the local rate of the customer’s country of residence. Airbnb charged VAT on its service fees for customers from the EU, Switzerland, Norway, Iceland, and South Africa.
VAT or JCT is charged at the time of payment and based on total guest service fee for a reservation. If you change your reservation, VAT adjusts to reflect any change in the service fee. AT or JCT is deducted from host payout.
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Image By Corey Coyle, CC BY 3.0, https://commons.wikimedia.org/w/index.php?curid=52464509