Frequently Asked Questions: VAT Regulations
In this article, we'll answer the frequently asked questions regarding the VAT change for 1-07-2022 in Belgium and the service change from Huswell.
Legenda:
- I don't want to apply for a VAT number, and would not like to rent it out under 6% VAT. Is that possible?
- I'm willing to apply, or already have a VAT number, and would like to rent it out under 6% VAT. Is that possible?
- What are the impacts of having a VAT number and renting out under 6% VAT?
- What does this customized service mean for the owner's revenue?
- 4a. For owners who don't fall under 6% VAT:
- 4b. For owners who do fall under 6% VAT:
- What does this mean for an owner's stay?
- What does this mean for a guest's stay?
- For owners who don't want a VAT number or fall under 6% VAT:
- For owners who do have or want a VAT number and do wish to fall under 6% VAT:
- Can an exemption be achieved by not changing the linen for bookings of 1 week or longer?
- Your property is in a company, but you are not liable for VAT. What then?
- Isn't it Huswell who rents out and It's Huswell who has to deal with the VAT?
- Do these regulations also apply if the owner lives abroad?
- Is there a transition period to change all systems and to properly transfer the accommodation of your property?
General:
Below are the FAQs that Huswell compiled regarding the reactions and questions we received to our email on 1/07/2022. These are useful but mainly targeted to the operations side and impact on the owner. We highly suggest also browsing the 24 FAQs made by the VAT you can visit via the link below. They added them in a PDF.
1. I don't want to apply for a VAT number and would not like to rent it out under 6% VAT. Is that possible?
Yes, following the adjusted service provided by HUSWELL regarding the email from 1/07/2022! The property will be rented out without bed- and bath linen and will now be offered by Huswell to the guest after booking confirmation. Thanks to this, the rental does not fall under 6% VAT.
2. I'm willing to apply, or already have a VAT number, and would like to rent it out under 6% VAT. Is that possible?
Yes, In that case, you must let us know that you want to continue renting out to guests with bed- and bath linen included. This means we will offer bed- and bath linen to the guest in your name and for your account, and the rental will be subject to 6% VAT based on the new regulations.
- If you don't have a VAT number and would like to fall under the 6% VAT, please consult an accountant as soon as possible.
- If you already have a VAT number, please consult an account as soon as possible to inform them.
3. What are the impacts of having a VAT number and renting out under 6% VAT?
You must submit your VAT return for the rental every quarter, and you can recover the VAT on the rental invoices such as platform commission, Huswell management fee, and cleaning Huswell cleaning fee). Also on other invoices such as electricity, water, maintenance, renovations,...
For more information, please consult an accountant.
4. What does this customized service mean for the owner's revenue
4a. For owners who don't fall under 6% VAT:
Nothing, because the rent remains the same and therefore our management fee and therefore the income for the owner does not change.
4b. For owners who do fall under 6% VAT:
The total income will be 6% VAT inclusive, and you can recover the VAT on the accommodation invoices such as platform commission, Huswell management fee, and cleaning Huswell cleaning fee. Also on other invoices such as electricity, water, maintenance, renovations,...
For more information, please consult an accountant.
5. What does this mean for an owner's stay?
Nothing. Huswell will still provide clean accommodations with prepared bed- and bath linen and continue charging the standard cleaning fee as usual.
6. What does this mean for a guest's stay?
As a result of the adjustment of our services regarding the email from 1/07/2022, the accommodation will standardly be offered without bed- and bath linen on all platforms but can differ depending on the owner's choice.
6a. For owners who don't want a VAT number or fall under 6% VAT:
At the time of booking, the guest pays the rental price of the accommodation together with the cleaning fee and is informed that bed- and bath linen can be purchased after confirmation from Huswell or another 3rd party.
After booking confirmation, the guest will then actively be offered the option to order bed- and bath linen from Huswell at an additional cost after booking confirmation. These bed- and bath linen will be priced attractively to allow as many guests as possible to order bed- and bath linen.
This means that guests now have the choice to bring their own bed- and bath linen, but we suspect that this will be very limited.
Operationally, for the time being, we will continue to prepare all accommodations with prepared bed- and bath linen and will only remove this if the guest did not order linen.
6b. For owners who do have or want a VAT number and do wish to fall under 6% VAT:
At the time of booking, the guest pays the rental price of the accommodation and the cleaning fee with bed- and bath linen included.
Operationally, we will continue to prepare all accommodations with prepared bed- and bath linen for these guests.
- If you prefer to rent out with bed- and bath linen, you must let us know!
7. Can an exemption be achieved by not changing the bed- and bath linen for bookings of 7 nights or longer?
No, that is impossible because the regulations look at each reservation individually. Long bookings are rather exceptional, and the short ones would always be subject to VAT 6% as soon as bed- and bath linen is offered by you as the owner.
The only option is to set the minimum stay at 7 nights without offering weekly refreshments, but that is, of course, very disadvantageous for the accommodation income.
8. Your property is in a company, but you are not liable for VAT. What then?
If you do not wish to remain subject to VAT, you do not have to do anything because the adapted services provided by HUSWELL mean that the accommodation remains exempt from 6% VAT.
If you wish to become liable for VAT, you must let us know!
9. Isn't it Huswell who rents out and It's Huswell who has to deal with the VAT?
Huswell is not the operator of the holiday home but purely a service provider who supports the owner/operator/landlord. Any VAT obligations must be done by the owner/operator/landlord.
10. Do these regulations also apply if the owner lives abroad?
Yes, those regulations also apply to owners who live abroad.
11. Is there a transition period to change all systems and to properly transfer the accommodation of your property?
Yes, you can understand that this change has a huge operational impact and to adapt this many accommodations and advertisements, we need time and ask for your patience.
For now, It is essential that you, as the owner inform us as soon as possible that you wish to continue renting out the accommodation with bed- and bath linen included in the total rental price paid by the guest upon confirmation. This means you'll have to apply or own a VAT number and fall under 6% VAT.
If you don't want this, you don't have to let us know, as we automatically switched your account regarding our adjusted service CFR the email from 1/07/2022.