Air Bnb took the Ontario hst taxes from my 2022 guests, my income for the year was less than $6,000, will air Bnb send me anything regarding this. .

[Marcides0]

First timer here…Air Bnb took the hst taxes in 2022 ,will they send in to can rev? My total income was less than $6,000 before my expenses,will air Bnb send me anything?I tried to download but they sent me a blank…I do not have a gst number

[Mike-And-Jane0]

@Marcides0 you should ask the tax authorities what agreement they have with Airbnb. Most agreements seem to have Airbnb just remitting one figure with no breakdowns so it is hard to see if the money collected on your property has been remitted or not.

[M199 · Accepted solution]

@Marcides0 

Hi from South Bruce Peninsula, Ontario.

Airbnb collects and remits GST/HST for Canadian Hosts who do not have a CRA account.  This started in July 2022 as a result of a lot of Hosts "collecting" the tax, however, not remitting them to CRA.   Airbnb acts as a tax collector, same idea as a store that adds GST/HST to a sale.  The business is effectively collecting an remitting the taxes due.  Businesses will deduct and remit according the the required CRA schedule.

Although Airbnb collects and remits GST/HST for Hosts who do not have CRA accounts, this is an issue for Hosts because, although, Airbnb remits the amounts collected, it does so in a bulk payment, not related to any individual account.

Yes, you may earn less that the $30,000 that CRA states is the threshold to legally deduct and remit, however, amounts under $30,000 are voluntary deductions and remittances CRA's.  Keep in mind that even if sales are less that $30,000, there is a benefit to voluntarily registering for a GST/HST account .  Namely, the account holder is able to deduct business related GST/HST from the amount owing.  For example, using the GST/HST of 13% of a $100 sale, the amount of GST/HST payable would be $13.  However, if business related expenses on supplies is $5, then the GST/HST owing will be $6 ($11 - $5 = $6).  This is called the input tax credit.

Another concerning point is that CRA requires those with GST/HST accounts not only remit, but also file regular statements online via My Business.  (Note, for sole proprietors or partnerships the username and password for My Business will be the same as for My Account).  Depending on annual sales, the remittance and reporting periods can be annually, quarterly or monthly.  Airbnb does not do the reporting piece on behalf of Hosts.  It is the Host's responsibility to ensure report and remit GST/HST to be in compliance with CRA tax legislation.

I currently do collect and remit under my GST/HST CRA account and do not rely on Airbnb.

My recommendation to any Host in your situation is that you contact a professionally licensed tax accountant or accounting service.  CRA will assess penalties and fines if filings are wrong or missing.

For further information, please see this CRA link.

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4022/general-info...

[Marcides0]

Thankyou very much appreciated and will do exactly as you suggest 

[M199]

Nice to meet you Marcides

I hope the information about GST/HST helped you.  If you have/need anymore information about Hosting or related questions, feel free to DM me.

BTW - I hope you know that renting is not employment income, but rather Rental Income under CRA rules.  Just another thing to note with your financial person.

Saw your puppy on your profile, meet Jasper.....