Are Taxes Added on in Addition to the Nightly Rate?

[Theresa400]

Hi all.  I'm posting a new listing, and I want to know if AirBnB charges the nightly rate I've listed plus tax.  So if my rate is $160/night, will potential renters see it as $160 night + HST?  And then will AirBnB remit those taxes to the government on my/their behalf?

Thanks for your insight!

Theresa

[Solveig0]

Hi @Theresa400 ,

I think this is highly dependent on your location. Have you looked at the Airbnb help pages for taxes? 

https://www.airbnb.com/help/article/481/how-do-taxes-work-for-hosts

https://www.airbnb.com/help/article/1213/resources-for-the-2019-us-tax-season

Maybe there's a local Airbnb host group (on facebook maybe?) that has the specific answers for California?

Yours, 
Solveig

[Jennifer1421]

Hi @Theresa400 , and welcome to Airbnb!

HST is NOT collected by the platform. If you are in a position where you MUST collect it (ie: expect more than $30k of revenue from your business in a year) then your options are:

1) Include hst in your nightly price by bumping it up 13% (obviously, mention that fact in your listing), and make the remittances yourself each quarter (which is likely not the preferred way), or:

2) Under your listing, there is a "local taxes and laws" tab. Under this you can add a tax, which will then be listed as a separate line item when a guest books. Here's the help article on that:

https://www.airbnb.ca/help/article/2523/how-do-i-add-taxes-to-my-listings

There are some caveats included in the help article, and you would still need to remit the funds yourself, but presumably the accounting is set up for you in transactions.

Do you have an hst account and registration number already? Have you checked with a professional CPA to make sure you need to collect hst?

[Linda108]

Hello @Theresa400   I am not able to see your listing.  Are you the co-host or did you remove your listing?  @Solveig0  advice is good.  Find out if where your listing is located is one of the areas that Air BNB collects taxes for. If no, you either collect separately with a request for money or you include it in your nightly rate.  Either way, it is best to include information in your listing description.