spj Posted December 8, 2018 Share Posted December 8, 2018 Apologies if this topic has already been covered, but I couldn't see any mention elsewhere so I'm copying wholesale a posting I put on another forum for gite owners, in case anyone has missed this and the implications for us and our guests:Finally been to the tourist office and had a very useful meeting. I'm fortunate in that I already have all my bookings for next year and so can do real calculations on the impact for our business. At the moment we are not classified and we do not charge our (GB) guests an additional amount for their TdS. This year we have paid 56.80 euros for 142 tourist nights (0.40 € tax) Next year, our tourist nights will be 161. If we remain unclassified we will have to use the complex formula (3% of daily rate x number of nights x number of adults) and our TdS will increase to 192.78 €. If we go for classification we would not aim for a high star rating and would not advertise it to our guests (no point, we have 5 star reviews on Homeaway). If we go for a 2 star classification the flat rate would increase to 0.70€ so we would pay 112.70 € However, to be classified for five years we would have to pay 200 euros up front. Worth it if we are certain we will still be doing at least this level of business over the next 5 years, but we may not be (both in our 70s already). So we've decided. We will continue to be unclassified. We already have all our guests for next year booked. We cannot now ask them to pay an additional amount for TdS, so we will continue to do as we've done up to now and pay it. From 2020 onwards however we will add it to our terms and conditions and our booking forms and have it displayed on our website and we will expect our guests to pay it. We will also warn our guests coming in 2019 what the implications are with the change. For example, we have one set of high season returners whose TdS will be 53.09 euros for this coming year. Up until now their TdS would have been 11.20 € (which is why we've always been happy to pay it). If we were to have a 2 star classification they would only be paying 19.60 €. I think this shows pretty clearly that anyone who is younger / building their business and expecting to be around for the long term, it clearly makes sense to go for classification (but maybe not too high a one!) and remain with a flat rate TdS. It's much cheaper for your high season guests and it is much easier for you to calculate. Some additional info that came out of our discussion: As I quote my prices in £ for the UK market and the TdS is paid in euros, I asked her what exchange rate to apply. It had never occured to her. So I suggested I would take the rate our accountant uses for our tax returns and she was happy with that. I think this is a level of detail they are not that interested in. There is no concern at all (at least in our region) WHO pays the TdS. She was completely relaxed about the fact that I've paid it in the past and not my guests and will continue to do so this coming year. She says I'm not alone in this. She tells me HomeAway will also probably be implementing collecting TdS at source, but they have not yet confirmed and it may be January 1st (!) or more likely July 1st. Our tourist office have yet to see any money from ABnB because it's been such a shambles. It is likely that the large groups will hold on to the TdS money for as long as possible (surprise, surprise) and whilst eventually it will be to the benefit of the tourist offices there's going to be a large gap in their finances short term.Excuse the long posting, but for those of you looking at the implications of the change I thought it might be helpful, especially as I'm dealing with real future bookings rather than just the theory. Link to comment Share on other sites More sharing options...
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