How AirBnB payouts work?

[Kristian]

Hello!

Who doesn't know, then airbnb is the middle-man in accommodation renting.
Buyer pays to AirBnb directy and AirBnb releases the the money in 24hours and can payout to the Seller.
My intrest is in what grounds airbnb can make payouts to sellers?

I need similiar shcema, first from payouts to company and later on payouts to private person(hope it's the right term).
So Buyer pays directly to my company, i'll take a small cut out of that and forward the payment to seller.
So in what ground i'm transferring money from my company balance to seller as far tax office is involved?
I can't just make it rain without any legal explanation for that...

For compaines i can ask them for an invoice, and pay them according to that, but that doesn't seem convinient and it doesnt involve privates who cannot make me an invoice.

 

[Ladislav]

Hi Kristian,

Have you found answer to your question? I have the same question and I am looking for an answer. Any help would be appreciated.

Thank in advance!

 

[AGH the CPA]

In the US, you can make a payment directly to a seller without requiring an invoice BUT if you pay them over a certain amount ($600) you need to file a 1099 form with the IRS. To do that, you will need a W9 form from the seller with their tax ID number.

In any case, a good paper trail is going to be critical. Somehow you need to know that the seller has "performed" so whether its invoicing or emails, print it out and make it the backup for your payments. DO NOT rely on text/whatsapp etc.