Airbnb Partners with Ontario Government

[Lizzie]

Hello Everyone,

Exciting News! Airbnb have just announced a new pilot partnership with the Ontario government to make it easier for hosts to host! By working together through this partnership, Airbnb hopes to make sure you have the best information around hosting in Ontario, including tax obligations, consumer protection and other matters of importance.

More details on this can be found in this blog post.

Do share your thoughts here.

[Jason24]

I’m strongly opposed to Airbnb sharing any private information vis a vis revenues with the government of Ontario. I know what my obligations are to CRA and am responsible to deal with these matters accordingly.

Jason Schwartz

Toronto, Canada

[Nancy-Lee0]

I'm strongly opposed to Airbnb sharing my private information with the government of Ontario. 

[Darryl-and-Allyson0]

I am strongly opposed to Airbnb sharing any of my past or future information with the CRA , the goverment of Ontario or any Goverment Agency to be quite frank. I am fully aware of my obligations. Airbnb already take there 11%  and should have been happy with that. This is one of the questions that I sought clarification from Airbnb when I signed up. They assured me that they did not share any info with the goverment of Canada . Airbnb was first based in the USA and Now Ireland. Do you know why they moved there head office to Ireland....to reduce there taxes.

 What they are suggesting completely changes the whole set-up and would probably result in us having to raise our rental rastes by 50% to make it worthwhile......Or rent with a company that respects our privacy or just rent privately.

[Katrina4]

: (

[Elizabeth39]

Congratulations to our forward thinking Minister of Finance, Charles Sousa, in Ontario. This partnership only enhances and legitimizes the economic advantage of the sharing community for tourism, as well as, job creation in Ontario. Nowhere in the partnership, clearly described in plain language, does Airbnb share host information ( ie Rental income) .    

On the contrary, it simply sets out the rules for income tax reporting and consumer protection. Personally, I accept  the relatively small  percentage Airbnb earns from me  in exchange for advertising my rental and ease in bookings and payment. This partnership should be embraced by host who want to exist in a professional environment. I say, hooray to this partnership

[Suzanne32]

I  agree with you Elisabeth and hope the Partnership turns out to be a good one and it will if the majority of everyone has the right intentions. The Opportunity to do something Amazing exists.

However i imagine that in February you were not aware of the perhaps the full magnitude of " The Partnership" and the CLEAR terms are STATED IN PLAIN  ENGLISH not in the Partnership news of course, but rather more discreetly in the finer details as sent  on May 19th in Airbnb's New Terms of service,( see below under HOST CLARE'S Fabulous Post!  )  you know its the Legal Mammoth Document you had to check off  & AGREE to in the Box -that is if you want to continue using The Airbnb Platform..So yes you ultimamtely YOU WILL  have all your transactions reported and all your info will be shared, with the Government  including any HST you have to collect and send to off to the Government. 

KUDOS to Clare for taking the time to Locate this section in the TERMS as of May 19th and point it out to everyone with her Post. Its time to be cear and transparent.

Personally i think its Naive and actually very self serving that People get upset and point the finger at Airbnb for this -what did they expect at this point from them?  Airbnb has to do what it has to do to carry on its very positive mission to take Home Sharing to the next greater level, Hiding and avoiding the Government obviously would not work and neither does aiding and abetting tax evasion. They took it as far as they could. They are a Global service Provider and facilitator of a type of e commerce platform , and as such their business can have their Head office anywhere ON THE GLOBE they want-including Dublin. Why should'nt they, any decent tax adviser and accountant would have advised them of this long ago  .Does anyone really think this compares to being bound to the laws and the tax codes of where your real estate property is ?  In  any given State, Province , Township whatever?  

I think its time for some Hosts to grow and and decide if they want to be part of something that can be for the Greater and better good and i dont mean a tool to hide money and evade taxes. Nor some underground unregulated movement that will only breed ill outcomes if it carries on in a vacume.

Basically if you dont like how the Airbnb platform is evolving and transforming from out of the darkness and into the light and you dont want to pay your fair share ,you have a choice-no one is forcing you to use Airbnb.

Clare

Level 10

Templeton, CA

2903 posts

View profile 

Send message 

Clare

4 hours ago

Hi @Suzanne, ever the optimist, I think I see a faint glimmer of hope on this subject. Why? Because of this paragraph in the New Terms of Service (under Payments Terms of Service) which everyone was supposed to agree to on May 19:

"Opt-in to Host Remittance of Taxes

In any jurisdiction in which Airbnb facilitates Collection by Opt-in for Host Remittance pursuant to the Airbnb Terms, you hereby instruct and authorize Airbnb Payments to send Occupancy Taxes received from Guests at the time Accommodation Fees are collected to the Host who is obligated to send such taxes to the Tax Authority directly. You hereby agree that through third party payment processors, Airbnb Payments is merely processing Your election and direction to have Occupancy Taxes from Guests sent directly to the Host for remittance by the Host to the Tax Authority, and that You will remit all amounts collected from Guests as Occupancy Taxes to such Tax Authority. You expressly agree to release, defend, indemnify, and hold Airbnb Payments and its affiliates and subsidiaries, and their officers, directors, employees and agents, harmless from and against any claims, liabilities, damages, losses, debts, obligations, and expenses, including, without limitation, reasonable legal and/or accounting fees, arising out of or in any way related to Occupancy Taxes, including, without limitation, the applicability of, calculation of, collection of Occupancy Taxes in any amount or at all as to your transactions or Accommodations. Hosts and Guests further expressly grant Airbnb Payments permission, without further notice, to store, transfer and disclose data and other information relating to them or to their transactions, bookings, Accommodations and Occupancy Taxes, including, but not limited to, personally identifiable information such as Host or Guest’s name, Listing addresses, transaction dates and amounts, tax identification number(s), the amount of taxes received by Hosts from Guests, or allegedly due, contact information and similar information, to the relevant Tax Authority."

This leads me to believe that Airbnb is developing a system for hosts like you and me to collect the HST (in my neck of the woods it is TOT: Transient Occupancy Tax).  They seem to have the legalese in place, now they have to implement the software.  I'm sure that Airbnb has heard the howls of hosts who are frustrated. 

Let's hope I'm right!

[Suzanne32]

Hi @Suzanne, ever the optimist, I think I see a faint glimmer of hope on this subject. Why? Because of this paragraph in the New Terms of Service (under Payments Terms of Service) which everyone was supposed to agree to on May 19:

"Opt-in to Host Remittance of Taxes

In any jurisdiction in which Airbnb facilitates Collection by Opt-in for Host Remittance pursuant to the Airbnb Terms, you hereby instruct and authorize Airbnb Payments to send Occupancy Taxes received from Guests at the time Accommodation Fees are collected to the Host who is obligated to send such taxes to the Tax Authority directly. You hereby agree that through third party payment processors, Airbnb Payments is merely processing Your election and direction to have Occupancy Taxes from Guests sent directly to the Host for remittance by the Host to the Tax Authority, and that You will remit all amounts collected from Guests as Occupancy Taxes to such Tax Authority. You expressly agree to release, defend, indemnify, and hold Airbnb Payments and its affiliates and subsidiaries, and their officers, directors, employees and agents, harmless from and against any claims, liabilities, damages, losses, debts, obligations, and expenses, including, without limitation, reasonable legal and/or accounting fees, arising out of or in any way related to Occupancy Taxes, including, without limitation, the applicability of, calculation of, collection of Occupancy Taxes in any amount or at all as to your transactions or Accommodations. Hosts and Guests further expressly grant Airbnb Payments permission, without further notice, to store, transfer and disclose data and other information relating to them or to their transactions, bookings, Accommodations and Occupancy Taxes, including, but not limited to, personally identifiable information such as Host or Guest’s name, Listing addresses, transaction dates and amounts, tax identification number(s), the amount of taxes received by Hosts from Guests, or allegedly due, contact information and similar information, to the relevant Tax Authority."

This leads me to believe that Airbnb is developing a system for hosts like you and me to collect the HST (in my neck of the woods it is TOT: Transient Occupancy Tax).  They seem to have the legalese in place, now they have to implement the software.  I'm sure that Airbnb has heard the howls of hosts who are frustrated. 

Let's hope I'm right!

[Neelan0]

Hi Everyone!

Airbnb is having a webinar this Tuesday, March 15th at 3:30pm with Aaron Zifkin, Canada's Country Manager. Highly recommend you join us if possible!

RSVP here:
https://act.airbnbaction.com/…/113…/2e3810a6/793787327/VEsH/

During this webinar we’ll discuss the recent Feb 19th announcement with the Ontario Gov't, how it will affect you, and the general political landscape in Canada in regard to home sharing. We’ll also cover ways for you to get involved with Airbnb Action and to get your voices and stories heard by lawmakers. Most importantly; you'll get to ask questions! So RSVP... You can log in via computer, or dial-in via phone on Tuesday!

Also, be sure to check out and sign up for airbnbaction.com!

[Janine3]

Afraid that I missed the March webinar.  Anybody know if there is any documentation of the discussion? 

Any discussion on the subject of collection/remittance of HST?? 

janine 

[Suzanne32]

I have no problem with Airbnb sharing my information with the Government - Full Transperancy is important & key to many of us hosts, not to mention Guests. But they need to offer an option within their  Invoicing & Itinerary Breakdown that as a Supplier  of Short term Housing and perhaps more,  Its mandatory and in fact i am requesting  it because i know i am  a GST/HST registrant and i am obligated to submit it because either i have generated $30, 000 CAD in short term bookings ( under 1 month) or i generated $30, 000 between my short term bookings and other services i am required to pay HST.

Furthermore in the cases where people do not know or just simply when people generate $30, 000 CAD or more from short term bookings on Airbnb-there system should automatically signal the GST and apply it to all the bookings.

I really dont think there is any excuse this way or mis-understanding.

I hope Airbnb takes this seriously.  I think there will be a lot of Hosts who are in for a rude awakening , because they think they can avoid the HST , plead ignorance.

Definitely more SIMPLE Up front info should be available to all Hosts -perhaps even before the offer is made or booking is accepted whenever a short term booking is made a Disclaimer or message should be displayed reminding them of their HST Obligations when income over $30K where the GST is required to be collected ( Short term bookings being one of them).

Hosts cant  hide from this anymore, if Airbnb is stating it in places like the  Acceptance of a Payment .

[Suzanne32]

Clare

Level 10

Templeton, CA

2903 posts

View profile 

Send message 

Clare

4 hours ago

Hi @Suzanne, ever the optimist, I think I see a faint glimmer of hope on this subject. Why? Because of this paragraph in the New Terms of Service (under Payments Terms of Service) which everyone was supposed to agree to on May 19:

"Opt-in to Host Remittance of Taxes

In any jurisdiction in which Airbnb facilitates Collection by Opt-in for Host Remittance pursuant to the Airbnb Terms, you hereby instruct and authorize Airbnb Payments to send Occupancy Taxes received from Guests at the time Accommodation Fees are collected to the Host who is obligated to send such taxes to the Tax Authority directly. You hereby agree that through third party payment processors, Airbnb Payments is merely processing Your election and direction to have Occupancy Taxes from Guests sent directly to the Host for remittance by the Host to the Tax Authority, and that You will remit all amounts collected from Guests as Occupancy Taxes to such Tax Authority. You expressly agree to release, defend, indemnify, and hold Airbnb Payments and its affiliates and subsidiaries, and their officers, directors, employees and agents, harmless from and against any claims, liabilities, damages, losses, debts, obligations, and expenses, including, without limitation, reasonable legal and/or accounting fees, arising out of or in any way related to Occupancy Taxes, including, without limitation, the applicability of, calculation of, collection of Occupancy Taxes in any amount or at all as to your transactions or Accommodations. Hosts and Guests further expressly grant Airbnb Payments permission, without further notice, to store, transfer and disclose data and other information relating to them or to their transactions, bookings, Accommodations and Occupancy Taxes, including, but not limited to, personally identifiable information such as Host or Guest’s name, Listing addresses, transaction dates and amounts, tax identification number(s), the amount of taxes received by Hosts from Guests, or allegedly due, contact information and similar information, to the relevant Tax Authority."

This leads me to believe that Airbnb is developing a system for hosts like you and me to collect the HST (in my neck of the woods it is TOT: Transient Occupancy Tax).  They seem to have the legalese in place, now they have to implement the software.  I'm sure that Airbnb has heard the howls of hosts who are frustrated. 

Let's hope I'm right!

[Suzanne32]

Hi @Suzanne, ever the optimist, I think I see a faint glimmer of hope on this subject. Why? Because of this paragraph in the New Terms of Service (under Payments Terms of Service) which everyone was supposed to agree to on May 19:

"Opt-in to Host Remittance of Taxes

In any jurisdiction in which Airbnb facilitates Collection by Opt-in for Host Remittance pursuant to the Airbnb Terms, you hereby instruct and authorize Airbnb Payments to send Occupancy Taxes received from Guests at the time Accommodation Fees are collected to the Host who is obligated to send such taxes to the Tax Authority directly. You hereby agree that through third party payment processors, Airbnb Payments is merely processing Your election and direction to have Occupancy Taxes from Guests sent directly to the Host for remittance by the Host to the Tax Authority, and that You will remit all amounts collected from Guests as Occupancy Taxes to such Tax Authority. You expressly agree to release, defend, indemnify, and hold Airbnb Payments and its affiliates and subsidiaries, and their officers, directors, employees and agents, harmless from and against any claims, liabilities, damages, losses, debts, obligations, and expenses, including, without limitation, reasonable legal and/or accounting fees, arising out of or in any way related to Occupancy Taxes, including, without limitation, the applicability of, calculation of, collection of Occupancy Taxes in any amount or at all as to your transactions or Accommodations. Hosts and Guests further expressly grant Airbnb Payments permission, without further notice, to store, transfer and disclose data and other information relating to them or to their transactions, bookings, Accommodations and Occupancy Taxes, including, but not limited to, personally identifiable information such as Host or Guest’s name, Listing addresses, transaction dates and amounts, tax identification number(s), the amount of taxes received by Hosts from Guests, or allegedly due, contact information and similar information, to the relevant Tax Authority."

This leads me to believe that Airbnb is developing a system for hosts like you and me to collect the HST (in my neck of the woods it is TOT: Transient Occupancy Tax).  They seem to have the legalese in place, now they have to implement the software.  I'm sure that Airbnb has heard the howls of hosts who are frustrated. 

Let's hope I'm right!

[Janine3]

I'm slow, just waking up now to the issue of needing to collect & remit HST on our bookings.  I think tho, that we (hosts) lose out because we need to report our gross income (to which HST is applied) but we receive net less the 3% processing fee.  Raise your rate 13% but you only get 12.61% back. Can't make it there! 

[Sandra593]

I am a new host and won't have made 30,000 this year but I hope to in the future if I can resolve the HST issue.  What are hosts doing now to collect HST?  When will Airbnb provide the option to hosts to have the tax collected by them at time of sale?

[Janine3]

There is lots more conversation about this on another board, maybe do a search.  The obligation to submit applies to anyone with an HST registration for ANY/ALL business income. After much conversation with others here & Airbnb staff, I have landed on:

- a comment on my listing that I am obliged to charge HST in person after their arrival

- in my first reply to my bookings/enquiries I note the specific amount  (I do not charge a cleaning fee, I mention this)

- I collect it in cash when they arrive.  One Canadian sent me an e-transfer after arrival. I have an envelope with some cash collecting in a drawer!  

This ALMOST always works, and is NOT very comfortable, given the nature of the Airbnb platform is about avoiding exchange of cash between guests & hosts. It's all they will do.  Airbnb seems to think that if they collect any taxes, they have to remit them to the appropriate authority.  Given that HST is not universally applied across Ontario (& certainly not Canadian) hosts, they won't do it. 

If you have other questions, please find the other thread.  I won't be replying again here. 

janine