Value Added Tax (VAT) is a tax on the supply of goods and services.
In some countries, this tax may be referred to as Goods and Services Tax (GST), service tax, or consumption tax. In this article, all of these are referred to collectively as “VAT.”
This guide explains how VAT applies to LuggageHero storage partners based in the European Union (EU).
Purpose
To explain how VAT is applied to partner earnings in the EU and how revenue is calculated for VAT-registered and non-registered providers.
Applies to
Platform: LuggageHero Partner Dashboard
Audience: EU-based Storage Service Providers
1. Adding your VAT details
If your business is VAT-registered, please add your VAT number directly to your dashboard:
Dashboard → Your Storage Location → Basic Profile → VAT
This ensures that VAT is correctly applied to your invoices and payout calculations.
2. VAT-registered storage service providers
Local VAT
Local VAT refers to the value-added tax applied by your country’s tax authority.
Rates vary depending on the jurisdiction.
Danish VAT
For VAT-registered storage providers, Danish VAT does not apply because of the reverse charge mechanism.
Revenue calculation
The Storage Service Provider charges a total Booking Fee, which includes local VAT.
LuggageHero deducts the Commission and Service Fee from this total.
The remaining balance is transferred to the Storage Service Provider.
The Storage Service Provider is responsible for paying their local VAT to the tax authorities.
Net revenue = Booking Fee − Commission − Service Fee − Local VAT (paid to tax authorities)
3. Non-VAT-registered storage service providers
Local VAT
Even if your business is not VAT-registered, your country may still apply a local VAT rate to the transaction.
Danish VAT
For non-VAT-registered providers, Danish VAT applies, since the reverse charge mechanism cannot be used.
Revenue calculation
The Storage Service Provider charges a total Booking Fee, which includes any applicable local VAT.
LuggageHero deducts the Commission, Service Fee, and Danish VAT from the total Booking Fee.
The remaining amount is transferred to the Storage Service Provider.
The Storage Service Provider is responsible for paying their local VAT to their national tax authorities.
Net revenue = Booking Fee − Commission − Service Fee − Danish VAT − Local VAT (paid to tax authorities)
4. Important notes
VAT requirements vary by country and business registration status.
LuggageHero applies Danish VAT only when the partner is not VAT-registered.
LuggageHero does not store or remit local VAT on behalf of partners — this must be reported to your national tax authority.
VAT-registered partners should always ensure their VAT information is up to date in their dashboard.
5. Disclaimer
The information in this article is provided as a general guide and doesn't mean to be professional tax advice.
Tax obligations differ based on your location and business setup.
Please consult your tax advisor or local tax authority to ensure proper VAT reporting and compliance for your LuggageHero earnings.
Summary
Add your VAT number in Dashboard → Basic Profile if you are VAT-registered.
VAT-registered providers: Reverse charge applies. Danish VAT does not.
Non-VAT-registered providers: Danish VAT applies in addition to local VAT.
Partners are responsible for paying any local VAT to their national authorities.
Always seek professional tax advice for your specific situation.