Understanding taxes and channel commissions for Vrbo reservations

The information in this article is relevant only for the Vrbo limited sync connection type.

This guide explains the integration between Guesty and Vrbo, how taxes and commissions are handled, and steps you can take to prevent common issues.

How taxes work

Vrbo collects and remits taxes in the United States across all states. For users integrated with third-party software like Guesty, Vrbo remains responsible for these tax obligations.

Taxes and fees sync

Manage taxes and fees directly in your Vrbo account for each individual listing. These settings are not managed within Guesty.

How taxes are displayed

Because Vrbo collects and remits taxes directly, the guest folio breakdown in Guesty does not reflect these tax amounts.

How commissions work

In Vrbo

Under the Pay-Per-Booking (PPB) model, Vrbo charges a fixed host commission that starts at 12%. This rate applies to partners in the US, Australia, and New Zealand on the standard PPB model who were previously paying less than 12%. The 12% commission includes a 3% payment processing fee; it is not an additional charge. If a cancellation occurs after the fee is charged, it will be refunded.

Note:

This Vrbo booking fee is separate from any additional fee configured on the Guesty side. If you set up a percentage-based additional fee in Guesty to offset the Vrbo booking fee, that is an independent, separately-configured charge and not part of Vrbo's own Pay-Per-Booking fee.

In Guesty

The commission calculation in Guesty matches the Vrbo formula. View the exact commission amount in the guest folio breakdown under Host Channel Fee in the guest folio breakdown.

Preventing common issues

Review the following points to ensure your financial data is accurate, confirm that taxes are set up correctly within your Vrbo account for each individual listing.

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