The numbers used below reflect a simple example based on a Booking Fee of EUR 12,000 and a Service Fee of 50%.
Your actual fees may vary based on your location and agreement.
1. VAT-Registered Storage Service Providers
Local VAT (of the Storage Service Provider):
20% (your actual VAT rate may vary by jurisdiction)
Danish VAT:
25% (not applicable due to the reverse charge mechanism)
Example Calculation
If the Storage Service Provider charges Travellers a total Booking Fee of EUR 12,000, this includes:
EUR 10,000 (base booking amount)
EUR 2,000 (local VAT of 20%)
Total: EUR 12,000
Step-by-step breakdown
Traveller pays EUR 12,000 through LuggageHero.
LuggageHero deducts the Service Fee:
50% of 12,000 = EUR 6,000
Payout to the Partner:
LuggageHero forwards EUR 6,000 to the Storage Service Provider.
Partner pays local VAT:
10,000 × 20% = EUR 2,000 (paid to local tax authorities)
Net revenue for the Partner:
6,000 – 2,000 = EUR 4,000
Final Result for VAT-Registered Providers
Net revenue: EUR 4,000
2. Non-VAT-Registered Storage Service Providers
Local VAT (of the Storage Service Provider):
20% (may vary by jurisdiction)
Danish VAT:
25% (applicable because the reverse charge mechanism does not apply to non-VAT-registered entities under Directive 2006/112/EC)
Example Calculation
If the Storage Service Provider charges a total Booking Fee of EUR 12,000, this includes:
EUR 10,000 (base booking amount)
EUR 2,000 (local VAT of 20%)
Total: EUR 12,000
Step-by-step breakdown
Traveller pays EUR 12,000 through LuggageHero.
LuggageHero deducts the Service Fee + Danish VAT:
Service Fee (50%): EUR 6,000
Danish VAT on the Service Fee (25% of 6,000): EUR 1,500
Total deduction: EUR 7,500
Payout to the Partner:
LuggageHero forwards EUR 4,500 to the Storage Service Provider.
Partner pays local VAT:
10,000 × 20% = EUR 2,000 (paid to local tax authorities)
Net revenue for the Partner:
4,500 – 2,000 = EUR 2,500
Final Result for Non-VAT-Registered Providers
Net revenue: EUR 2,500
Summary Table
Provider Type | Traveller Pays | LuggageHero Deduction | Payout to Partner | VAT Owed by Partner | Net Revenue |
VAT-Registered | EUR 12,000 | EUR 6,000 | EUR 6,000 | EUR 2,000 | EUR 4,000 |
Not VAT-Registered | EUR 12,000 | EUR 7,500 | EUR 4,500 | EUR 2,000 | EUR 2,500 |
Important Disclaimer About This Example
The calculations shown in this article are illustrative examples only and are provided solely to help Partners understand how payouts may work under a typical scenario.
They do not represent your actual fees, commissions, applicable taxes, or final payout amounts.
LuggageHero:
does not provide tax, accounting, or legal advice
cannot be held responsible for how a Partner interprets or uses the example
does not guarantee that your actual amounts will match the example
is not liable for any financial decisions, tax filings, or reporting based on this example
Your real earnings may differ depending on:
your local VAT/sales tax rules
your registration status (VAT-registered or not)
Your Partner Agreement
Your country’s tax authority requirements
Currency fluctuations or local fees
Any changes to your commission structure or local laws
Partners are fully responsible for obtaining independent tax or accounting advice to ensure compliance with local laws and to understand the exact amounts owed.