What is VAT and how does it apply to me?
Value Added Tax, or VAT, is a tax assessed on the supply of goods and services. In Japan, Japanese Consumption Tax, or JCT, is applicable instead of VAT. In New Zealand, New Zealand Goods and Services Tax, or GST, is applicable instead of VAT.
VAT, JCT and GST rates are calculated according to the local rate of the customer's country of residence. Airbnb charges VAT on its service fees for customers from the Albania, European Union, Iceland, Norway, Russia, South Africa, and Switzerland. In Japan, JCT applies to the hosts and the guests. In New Zealand, GST applies to the hosts and the guests.
Airbnb is also required to collect VAT on its services fees from all users who contract with Airbnb China.
VAT, JCT or GST is charged at the time of payment and is based on the total guest service fee for a reservation. If you change your reservation, VAT, JCT or GST adjusts to reflect any change in the service fee. Airbnb charges JCT from the guests who reside in Japan (and then Airbnb reports and pays the JCT). In this regard, Airbnb (Airbnb Ireland) is registered as a Registered Foreign Business under the JCT act (Registration No. 00046).
VAT or GST is deducted from your payout and is based on the total host service fee for a reservation. If you change your reservation, VAT or GST adjusts to reflect any change in the service fee. As to the hosts who reside in Japan, each host is obligated to report and pay the JCT because the hosting services that Airbnb provides to the hosts are subject to the “reverse charge” system under the JCT act (Airbnb does not charge or report/pay such JCT). As to the JCT payment by way of the “reverse charge” system, please refer to the explanation by the National Tax Agency of Japan（https://www.nta.go.jp/shiraberu/ippanjoho/pamph/pdf/cross-kokunai.pdf). Hosts are advised to consult their nearest local tax offices or their tax advisors as to their specific tax consequences.