GST in Canada

[Gramme-Wing-Yan0]

Hi there,

I'm wondering if we can add the 5% GST (For Alberta, Canada) on top of our total? We need to remit 5% to CRA.

Thank you!

[NavHundal0]

I just finished a long phone call as well as a series of email conversations with an Airbnb telephone advisor, and this is what they suggested to me today.:

“I have the information that to collect additional tax outside of what Airbnb is collecting like, hosts can collect taxes via the Resolution Center, the Special Offer tool, by incorporating the amount into their rates, or in person at the time of check-in provided that this is noted in their listing description and confirmed with the guest”.

This seems like a ridiculous set of options to put onto the host, when it could be simply built-in to their website as a drop-down, as others have suggested.

So what are others in Canada doing? Incorporating it into their nightly fees? Asking for a separate 5% fee before guest arrival?

Our rental is in Whistler. We have only recently joined Airbnb, (but have been on Vrbo). This year will be the first time we have to submit PST/MDRT because it only started being collected in Whistler late 2018. So now because of the different payment options on vrbo and Airbnb, we have to separate out which of our bookings are made through VRBO vs through Airbnb so we know when we have to remit PST/MDRT, vs submitting GST only, or separating out the GST from our payment for each booking. What a nightmare!

[NavHundal0]

Further info I just received:

1. A special offer allows you to set a custom price for a guest who sends you a booking inquiry. Please see link below to know about special offers.

https://www.airbnb.com/help/article/1349

2. The Resolution Center lets you request or send money for things related to your Airbnb trip. To open a refund or payment request, go to www.airbnb.com/resolutions.

[Rachel1486]

That is a totally unrealistic option for hosts that have hundreds of bookings  a year.

[Jenny-and-Pete3]

We came across a listing in Alberta that charges an extra 5% for VAT/GST to bookings automatically. After searching the community page and contacting Airbnb Support with no luck, we reached out to the host and she told us how to do it. 

You have to go under your "Account" and click on "Professional Hosting Tools". Once you do that under your listings there is an option to "Add a tax" where you can select the type of tax and amount. 

[NavHundal0]

Thanks for this information. I just went to the website and checked, and yes there is a new drop-down menu for adding a tax. It doesn’t allow you to specify whether it’s GST, so I just put it under resort fee. The New options are resort fee, community fee, management fee and linen fee. 

[Juan2802]

Sounds like what I'm looking for! Unfortunately, to get access to these professional hosting tools you need to submit a for to Airbnb first to provide evidence that you're part of a company. I sent them my details (including registered business number with Canada) about 2 weeks ago but nothing! I just sent them a message asking them what's up so hopefully I hear from them soon. I just hit my $30000 run rate last month and this month my GST is coming out of pocket because I didn't collect it from the guests 😞

[Alison861]

I have Professional Hosting Tools and there is no option to add a tax on my listing (under tax section there's just a note saying they are deducting provincial taxes automatically with a link to their information page).  Maybe they changed it since you posted this in 2020?

[Debbie346]

Hello, 

I had the same question.  After an hour of communication with Airbnb support, and no answers, I called CRA and spoke to someone from the GST ruling department.  1-800-959-8287.  After only a few minutes, my questions were answered.  

Although Airbnb is not an accepted direct seller with CRA, since they collect rent on behalf of the hosts, it is the responsibility of Airbnb to remit GST to CRA, NOT the host.  

I was quite concerned, as there seemed to be no way to have GST as an item on the guest's invoice.  As I have more than one sole proprietorship for which I have to remit GST, I needed to be assured that I would not be receiving  a huge GST bill down the road.  I now feel at peace that I am not going to be charged with tax evasion.  I wish Airbnb had more information on this topic available to hosts.  

I hope this sets your mind at ease.  However, if you want to feel more secure, you can always call the number above to get an answer directly from Canada Revenue Agency. 

Have a good day everyone! 🙂

[Luwam1]

Hi @Debbie346,

I had a look at the CRA website and they have a document out that talks about "Accommodation Sharing". It contradicts what the CRA agent told you (especially the 3rd paragraph below that talks about if you are already a GST/HST registrant). You may want to follow up with them again.

The following is what they say about GST/HST:

Goods and services tax/harmonized sales tax (GST/HST) implications

Accommodation sharing falls under “short term accommodations”, which can be defined as rentals where the period of continuous occupancy is less than one month. Rentals of residential premises for periods of continuous occupancy of one month or more are exempt from GST/HST

If you are a small supplier who earns less than $30,000 of gross revenue from accommodation sharing, you may voluntarily register to take advantage of the related input tax credits (prorated in the same manner as the expenses that are deducted for income tax purposes).

If you are already registered for GST/HST, you are required to collect and remit GST/HST on your short term accommodation revenues even if they do not exceed $30,000. Note: This rule may not be applicable to you if you only registered for GST/HST as a result of providing ride-sharing services. Although you would be required to collect and remit GST/HST on income relating to ride-sharing services, if the combination of accommodation and ride-sharing services does not exceed $30,000, you are only required to remit GST/HST on the ride-sharing income, not the accommodation income.

This is the link to the CRA website where I got the information: https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/sharing-...

[Marcus222]

Hello, I have heard that CRA is communicating with airbnb regarding their requirement to collect GST, but it sounds like a slow process.  In the meantime, airbnb is charging GST on PST, which is also a problem, as I earn more than 30k, have a GST # and because airbnb does not have a GST line item in their settings, I have to subtract the GST from the gross revenue.  I have spoken with airbnb and they just give me a generic response that does not address the GST issue.  Either airbnb should collect the GST, as they do with PST and MRDT or give the host the ability to setup the GST tax code using a drop down list, based on the province your listing is located.  I hope airbnb will provide answers soon.