About value-added tax (VAT)
Turo is required to collect value-added tax (VAT) from hosts for trips taken in all vehicles listed in the United Kingdom. If your vehicle is listed in the United Kingdom and is booked by any guest from anywhere in or outside of the UK, you’ll incur this tax.
VAT is calculated at a standard 20% of the Turo fee (Turo’s take rate of the earnings). Turo takes 35% or 25% for trips booked with the 65 plan or 75 plan, respectively, and 20% for Commercial Host trips of the following:
- Trip price (your vehicle’s listed rate multiplied by the trip length, minus discounts)
- Delivery fee
- Additional distance charges
- Additional usage fees
- Late fees
If you’re on the 75 plan your earnings will reduce from 75% to 70% and from 65% to 58% if you’re on the 65 plan.
Host earnings statement
VAT will appear as a separate line item on your Trip receipt for each transaction. If you submit a reimbursement request for additional distance, the tax applied to this payment amount will show as a separate line item on the receipt.
Can hosts claim back VAT on Turo trips?
Cars listed on Turo must be in a personal name, however, hosts are able to receive their Turo earnings in a business account. Businesses could be eligible for certain VAT refunds. Please consult your local tax professional for any and all tax advice.