Canada Tax charged by AirBNB

[Sandeep103]

Hi All,

Do you know if AirBNB charges GST, PST, City / tourism tax and on what part Room/cleaning/service fee etc? Although, AirBNB support is very helpful they aren't local and aren't able to provide details we need to know as local business owners. 

Thank you,
Sunny

[Karen114]

@Sandeep103  Here's an article I found explaining the taxes. 

https://www.airbnb.com/help/article/2283#:~:text=of%20British%20Columbia-,Guests%20who%20book%20Airb.... 

[Joan2709 · Accepted solution]

@Sandeep103 

If you try to book your listing as a guest, you will see what Airbnb shows is included in the taxes on a reservation. First you need to know what taxes actually apply to your listing by confirming that with all the tax jurisdictions including what percentages should be charged and on what? They will tell you how to calculate it. It looks like some taxes are supposed to be charged on the nightly rate and any fees and some only on the service fees. Maybe another Host in your area can comment on that. I will say that Airbnb doesn't always collect all the taxes required and may not collect the correct amounts on the taxes they do collect. It is up to the Host to ensure taxes are being collected and paid; either by Airbnb, or the Host sometimes collects and pays the taxes themselves. 

Then you would need to do the math and determine if the taxes that you are required to pay are being calculated correctly by Airbnb by looking a reservation and doing the calculations.

To check what jurisdictions Airbnb is collecting for on your listing, go to:

- Listing Editor

- Click Preferences Icon (3lines top right)

- Click Taxes

[Sandeep103]

Hi Joan2709

This is very helpful.

We recently applied for GST given we went over the threshold of value of business for the year. Once Airbnb requested for GST number we provided we noted that the tax calculations on other properties in the vicinity were not the same as ours.  We then reached out to community and Airbnb. 

I hope Airbnb when asking for GST# (or other such local tax requirement) lets owners know articles similar to 2283 shared by Karen114. This will help owners take the right steps immediately.

The other problem I noted was be able to find the gap (between the time we provided GST# and reservations not charged GST). After a few exchanges with Airbnb was able to share those. We will need to pick that tab for our guests for a few reservations.

Thank you all for providing valuable feedback.
Cheers
Sunny

[Elisa]

Hi @Sandeep103 😊, 

Thank you so much for asking this question here!

Did our hosts help you better understand the Canada tax?

Don't hesitate to let us know!

Warm regards, 🌻