Air bnb taxes-GST, PST, MRDT

[Sam4794]

Morning,

Experts and fellows,

After running Airbnb a few years, I incorporated it in BC. 

Questions:

1. Airbnb platform collects taxes, but have they covered 5% GST,  8% provincial sales tax (PST), and  3% municipal and regional district tax (MRDT)?

2. Any guidelines, articles, links, or advice to share, for the hosts to collect the above-mentioned, if some types of taxes are actually hosts' responsibility?

Thanks in advance!

[Sybe · Accepted solution]

Hi @Sam4794 !

Since these questions seem to be specific for Canada, perhaps @M199 could give us some answers. 🙏

You could also try one of the local Host Clubs in your area. You can find them here:

https://community.withairbnb.com/t5/Get-Local/ct-p/en_clubs

I hope that helps! 🙂

[Claire1975]

Please note that when GST is charged is needs to be separated and specified to the guest. Also note that GST should be charged on all short term stays which is defined by CRA as 30 days or less. All stays that are over 30 days should not be charged GST which appears to have been done correctly. The problem is that the taxes are being lumped together in Occupancy Tax and this is not sufficiently broken out for the people being charged the tax and for CRA. If it is not specified on the receipt/invoice CRA does not deem the GST to have been charged. Airbnb - how do you proposed we correct this?

[Albert1877]

I am glad to see that I am not the only one struggling with this problem and ABB.   I have been trying to explain to ABB support that their taxation setup need to be corrected.  Our listing is in Quebec so there is Lodging Tax, GST and QST.   Providing ABB with your taxation number means they will not collect the tax and remit it to you.  But I have found, at least here in Quebec, that if you do not register they still are not collecting the GST and QST.  After getting the run-around and the absurd suggestion to use the Resolution Center to collect the taxes I am resigned that I have to include the taxes in my pricing. I resolve the problem of providing the tax information to the guest by proving a separate invoice which will show the tax breakout.

Unfortunately, this also means the 3.5% Quebec lodging tax is being calculated on top of the tax that I must add to the nightly price.

None of these solutions are in keeping with the taxation rules here in Canada.

Wake up Airbnb before you get fined after the right person complains to Revenue Canada.