When HomeAway starts collecting SOME of our taxes.....
Letters have been sent to owners in my condo that are using HomeAway telling them that HomeAway will begin collecting and remitting Florida State Sales Tax for them beginning Dec 1. I haven't received such a letter but I'm told it's soon coming for PMs too.
This creates a difficult scenario for our integrated listings.
- Trip Advisor requires that all of our fees already include ALL taxes, but if the same tax structure rolls to HomeAway, they will tax it again. But if we remove the tax from the total for HomeAway, then Trip Advisor won't charge it at all.
- HomeAway is collecting only the State Sales Tax, but in our county there is a City Business Tax that is 1% of the Rental Amount, and that fee IS TAXABLE for the State and County as well. I have no idea how they will discern that that is taxable unless it's reclassified as a fee and not a tax?
- If they are collecting and remitting only the STATE sales tax, then I'm wondering if they will charge THAT portion along with their Service Fee to the guest on a separate charge, before forwarding the rest to us. That creates a communication nightmare for transparency to the guest.
- Who will be the "merchant of record" for the transaction? And of course all of the logistics questions.
So my question for MyVR is...are there currently plans and structural changes coming to support this transition to HomeAway's new policy? Might it include having DIFFERENT pricing structures or at least fees for each channel integration?
Thank you for your questions. We certainly understand keeping track of the various way taxes and fees are handled on each channel can be complex, and we're glad to solve for this management challenge:
Our partners at HomeAway confirmed it will be business as usual as of that date and will not change your process. Since you are an Integrated Property Manager with HomeAway through MyVR, payments are processed through your own merchant account (via Stripe).
As a result, HomeAway refers to as your 'own merchant', there won't be a change in how taxes are being collected for integrated listings. This change only impacts standard 'platform' users who have their listings setup directly through HomeAway (more info on what they collect and remit for those users here.) So, things should be staying as normal for your listings. It's safe to double check that your rental fees on the property are configured correctly to be collecting the necessary taxes.
I hope this helps clarify. Please let us know if you have additional questions!
@anne-kohn - Thank you! That is the BEST possible news. My Account Manager at HomeAway said it was coming for PMs as well, but he probably didn't pay attention to the integrated listing factor. I trust MyVR info FAR FAR FAR more than HomeAway info, so I'm going with that! THANK YOU!
And HAPPY THANKSGIVING aka Turkey Day!