Depending on your location, Peerspace is required to collect indirect taxes on its Peerspace service fee. In some places this is called Value Added Tax (VAT) or Goods and Services Tax (GST), but for the purposes of this article, the indirect tax will collectively be referred to as VAT.
Why should I add my VAT information?
In some locations, if you are registered for VAT, you may not be charged VAT on Peerspace service fees.
For instance, within the European Union—except for the Netherlands—if you have successfully added your VAT ID with Peerspace, you will not pay VAT on your Peerspace service fee (also known as a ‘reverse charge’) because Peerspace Europe is operating out of the Netherlands. More information on EU VAT registration can be found at the European Commission website.
However, depending on your local VAT laws, you may still need to self-assess the VAT and declare the amount in your VAT return. Peerspace will add your VAT information to your host invoices for reporting purposes with the relevant tax authorities.
As a host, how do I include VAT in my prices?
If you’re registered for VAT with your local tax authority, you can add your VAT information in your Taxes section.
When you add your VAT registration information, you’ll also be able to add the percentage of tax you’ve included in your rates. This will be applied to your hourly rate, any calendar or attendee pricing, as well as any cleaning fees. When you add a tax percentage, Peerspace will not charge the host service fee on your tax rates.
If you also apply VAT on add-ons, you can specify your VAT rate on each add-on based on your local tax rules. You can manage this from your Add-ons section. For more information, visit What are add-ons?