On July 8, 2020 the UK Chancellor announced a reduction in VAT (Value-Added Tax) from 20% to 5% across the hospitality industry. The VAT rate cut will come into effect on 15 July, 2020 and will last until 12 January 2021.
Will you get a VAT refund if you've pre-booked Airbnb?
Yes, if your trip starts after July 15th, 2020 your VAT should be recalculated.
⚠️ NOTE: as Airbnb is an intermediate platform between guests and hosts it does not charge for VAT for the full amount of accommodation fees. Guests only pay VAT for Airbnb service fee which they pay for using the platform.
Service fee on Airbnb is 14% and VAT is 20% now, which means if you booked a £1000 trip you paid (1000*0.14)*0.2 = £28 in VAT and after recalculation you will be entitled for £21 refund.
The VAT for your reservation will be recalculated when the rate changes. Airbnb Accounting Department is monitoring the tax rates and refund/charge if an inaccuracy detected. The process is automated, no additional action required.