Since 1 July 2022, new vAT rules will apply to short-term rentals of accommodation.
Under certain conditions, landlords will have to charge vAT and submit a vAT declaration. Fortunately, Dexxter makes this easy and inexpensive.
For whom?
Where previously a VAT exemption still applied, lessors of accommodation (room, flat or holiday home) will have to charge 6% VAT to their customers.
This new VAT obligation applies if the next conditions are met:
1) Rentals shorter than three months
The customer rents the accommodation for less than three months. If the rental lasts longer, e.g. in the case of student dormitories, there is vAT exemption.
2) Furnished accommodation
There must be furniture in the accommodation. This is very often the case for short rental periods.
3) Rental in combination with hotel services
There must also be one of the three hotel services listed below to be subject to VAT. Meeting one of the conditions below is therefore sufficient!
- A physical reception of guests, during a large part of the day. This is also the case if this is provided by a third party, such as a real estate agency that does the reception for you.
- Presence of a sheet and/or towel set for guests.
For stays of more than one week (7 nights), this condition applies if the package is refreshed by the manager after at least one week. - Offer of daily breakfast. If you rent a week and only provide breakfast on weekends, this condition is not met.
From when?
The measure is already effective from 1 July 2022. The legislator does provide for a certain tolerance, so only bookings made after 1 July are subject to the new vAT rate. So tenants who had already booked before 1 July for periods between 20 and 30 July, for example, will not yet have to pay vAT.
Why?
According to the legislator, this rule was created to level the playing field a bit more between private persons and hotels etc.
How does vAT work?
The 6% you have to charge your customers (both on accommodation and services), you have to remit to the government quarterly.
By means of a vAT declaration, you know the amount involved. If you prepare your invoices in Dexxter, you can automatically generate your vAT declarations and immediately know how much you have to pass on. That way you keep it simple and are 100% okay.
You yourself can now also deduct vAT on expenses in function of your holiday accommodation. This can make things a bit more complex and requires a bit more research, but Dexxter and the Dexxter advisers can certainly guide you through this.
Still have questions about this topic? We bundled the most frequently asked questions here!
To do’s as a rental owner
This is what you need to do to be okay as an operator.
- Apply for a vAT number
You can do this yourself and it will cost you nothing. Business bureaux (such as Acerta, Xerius, etc.) can also do this for you, but they will charge you a price for this.
The holiday home is part of your private assets, which is why you do not have to register it with the Crossroads Bank for Enterprises. So you do not become self-employed, you will only have to submit a vAT declaration.
- Invoicing
Provide professional and legally valid invoices for your customers. In Dexxter, this is a piece of cake and you can be sure there are no errors on them.
- Filing vAT declarations
At the end of each quarter, you need to submit a vAT declaration. Thanks to Dexxter, this is literally 2 minutes’ work. Because the invoicing is all done from the package, Dexxter knows exactly how much vAT you get back or have to pay to the taxman. Just follow the step-by-step plan and you’re completely okay!
Dexxter also sends you reminders every time your vAT declarations are due. So no stress!
Dexxter turns dreamers into doers. With Dexxter, landlords can easily draw up invoices and submit their vAT declarations, so you are completely okay. No accounting knowledge is required and you can try it free for a month. Discover the subscription that suits you best here.
