Information about Model Reporting Rules for Digital Platform Operators (“MRDP”)
What’s in this article:
- General information about MRDP
- Who is in scope under MRDP
- Information required under MRDP
- Common FAQs
- How we collect and share MRDP data
General information about MRDP
MRDP is a set of OECD Model Rules adopted by the EU to improve tax co-operation between participating jurisdictions. We are required to collect and report information in relation to your property to our tax authorities, the Irish Revenue Commissioners. MRDP is effective from 1 January 2024, and reporting commenced in January 2025.
Failure to provide Hostelworld with the relevant tax information will lead to your property being delisted from our platform.
Who is in scope under MRDP
MRDP applies to a platform user who receives income from renting accommodation, where either the user is a resident of a participating jurisdiction or the income is received from a property listing in one of these MRDP participating jurisdictions.
For MRDP purposes, platform users are defined as entities or individuals conducting business through Hostelworld.com’s platform with whom Hostelworld.com have contractual relationships with.
List of participating jurisdictions:
- Canada
- New Zealand
- United Kingdom
Information required under MRDP
- Property name (pre-filled from your contract with Hostelworld.com Limited)
- The address of the property being rented out
- Value Added Tax (VAT) Number
- Tax Identification Number (TIN)
- Business Registration Number
- Property revenue (consideration) received from the booker (without Hostelworld’s commission/deposit amount)
- Hostelworld will be reporting all bookings made between 1st January to 31st December in the calendar year for all booking types, net of all cancellations made for the free cancellation booking product from 1st January to 31st December of the calendar year, if the cancellation was made within the allowable window.
- Outside of valid free cancellation bookings, Hostelworld does not have the ability to monitor late cancellations or no-shows, and therefore, these will not be reflected as cancellations in the reporting.
- Hostelworld’s commission
- Hostelworld’s commission is the fee for the provision of software and data processing services to the seller (property) of the accommodation for all booking types.
- Hostelworld reports the commission earned per booking made between 1st January to 31st December in the calendar year for all booking types, net of all cancellations made for the free cancellation booking product from 1st January to 31st December of the calendar year, if the cancellation was made within the allowable window.
- Number of bookings
- Number of rented days / bednights
FAQs
What is a Value Added Tax (‘VAT’) Number?
A VAT number is a unique identifier issued by local tax authorities to businesses which are registered for VAT. In some countries, such as Canada and New Zealand, this may be referred to as a Goods and Services Tax (GST) number.
What is a Business Registration Number (‘BRN’)?
A BRN is a unique identifier assigned when you register your business, typically provided by a Chamber of Commerce or a national company registry depending on the country where your business is registered.
What is a Tax Identification Number (‘TIN’)?
A TIN is a unique number issued by local tax authorities. It should generally be used for business purposes. Individual (owner) TINs apply where a business TIN is not available.
See below a list of each EU Member country’s expected tax ID format for Individuals and for Businesses as per the OECD guidelines:
Will anything change in how taxes are processed due to MRDP data reporting obligations?
MRDP doesn’t require any changes in the way taxes are processed, neither for the commission charged by Hostelworld.com nor for local taxes you charge travellers. At the same time, we expect that the local tax authorities will use data provided by platforms to evaluate the correctness and completeness of your tax submissions.
I have multiple property listings in one country, what information do I need to provide?
MRDP requires taxpayer information to be provided for each listing. You can assign the same taxpayer information to all your listings or provide different information for each, depending on your business structure and the local tax identifier information.
I have listings in multiple countries, what Information do I need to provide?
MRDP requires taxpayer information to be provided for each listing. It is expected that you will have relevant taxpayer information, such as a TIN, for each country in which you host property listings, or are a resident.
Note: If you list properties within and outside of the EU, the request for taxpayer information under MRDP is independent of taxpayer information obligations you may have in other countries.
If I don’t provide my taxpayer information and assign it to my listings, what will Hostelworld do?
If you do not provide us with the relevant taxpayer information, we will be forced to delist you from our platform.
If I don’t provide my taxpayer information and assign to listings, will Hostelworld.com share my data?
Yes. We will share all of the relevant information that we have, to the extent required by MRDP, in addition to taking the required enforcement measures.
What are the exclusions to MRDP?
Entities excluded from the scope of MRDP:
- Governmental entities
- Entities listed on a stock exchange
Services excluded from the scope of MRDP:
For Accommodations: More than 2,000 bookings per calendar year on the Reporting Platform (Hostelworld.com). If you have an EU property listing with more than 2,000 bookings per calendar year as of December 31, your listing will be excluded from Hostelworld’s MRDP reporting. If you have other property listings that did not reach 2,000 bookings (per listing, per calendar year), these will be included in Hostelworld’s MRDP reporting.
The 2,000 bookings threshold applies individually to each Reporting Platform and is not aggregated across systems. Exceeding 2,000 bookings on Hostelworld’s platform does not result in exclusion from other Reporting Platforms MRDP submission.
How we collect and share MRDP data
Legal basis for collecting data under MRDP
Irish legislation implementing the MRDP places a legal obligation on Hostelworld.com to share the data of platform users who receive income from renting properties in circumstances where either the user is a resident of a participating jurisdiction, or the income is received from a property listing in a participating jurisdiction.
We are collecting your data in order to allow us to comply with our legal obligations under MRDP.
Who will Hostelworld.com share my data with?
Hostelworld.com will share your data with the Irish Revenue Commissioners for MRDP compliance purposes. The Irish Revenue Commissioners will then share this data with the tax authorities in the participating jurisdiction(s) where you are resident and/or where your Hostelworld.com property listing(s) are located.
If I remove my property or my property is deactivated from Hostelworld.com, will my information still be shared?
If you make transactions within a reporting period your data will still be shared with the Irish Revenue Commissioners for MRDP purposes, as required for all hostel partners with properties within participating jurisdictions transacting through Hostelworld.com