GST Ontario, Canada changes as July 1st 2022

[Christine3207]

New emails coming from AiBnB regarding GST in Ontario Canada. We are not at $30,000 yet I keep getting messages that as of July 1st 2022 I need a GST number. Can anyone clarify this for me. 

[M199]

@Christine3207 

You and every other Canadian host need to talk to a tax accountant for advice. No one here can give you legal or tax advice, unless professionally licenced.

[Christine3207]

My understanding of the Airbnb email is that if we do not have a GST number then Airbnb will add the GST to the booking and charge the guest. If I already have a booking in July will Airbnb add the GST to the guests booking they already paid or will they reduce my pay out by the GST amount? 

[Nan-And-Michael0]

We also confirmed bookings for July and August. 

[M199]

@Christine3207 

That is an excellent question.  I honestly don't know tax &/or legal repercussions. That would be a legal /tax accountant question .  Nor has Airbnb, as far as I know, detailed the impact of "already booked reservations" post July 1, 2022 for the GST remittance requirements.

 @Sybe 

[Irina195]

Is anyone can recommend an accountant familiar with an Airbnb meters in Ontario?

[Glenda142]

How do we find out if they’ve charged our bookings for this summer already.

my acct says since I don’t make $30 g a yr I don’t need a tax number but for sure my bookkeeping costs will go up sorting and submitting gst.I cannot reach air Bnb thru any help r calls.

does anyone have an email or a number to call.

so does everyone just up their price 5% then your bookkeeping costs to submit it.

[Christina297]

This is a great question, and I would like to know as well. Sounds like in their email, that if you don't submit a GST number they will start charging guests GST. BUT we haven't made the $30,000 threshold as per CRA to be responsible for GST. 

[Christine3207]

Someone from Airbnb should be able to tell us how they will

charge the  guest if there is no GST number. That is not an accountant question as Airbnb will be doing the collection. Will they charge the guest on top of the listed price or will they reduce our pay out by that amount. If we already have booking in July we need to know this information so the guest is charged appropriately and knows what to expect. 

[Sandra-and-Jim1]

Christine, did anyone get an answer to what happens with the GST/HST  when we already have bookings for July (and onwards)?
Thanks in advance

[Dawn298]

You would think that someone would know about this new change, but I called ABB yesterday and they keep sending me emails with their directions to get my GST tax number. They have no idea as to how this impacts us as hosts. But from what I can glean, ABB will collect the tax and remit it on our behalf. Those that have bookings after July 1st will have the tax added to the guest's bill. It is a shame that we are being treated just like the big hotels but without all the tax breaks! For many of us, this is just a cottage business, something to help pay for the costs of our property. I am in Toronto and I also have to collect the 4% hotel tax! My guests will be paying 17% on top of their reservations. I don't care what anyone says, this will affect us. 

[John5907]

Hi @Dawn298 ,

I am curious how you currently collect the 4% hotel tax - are you able to add a separate line item for this? We have an HST number and would rather add a separate line item for future bookings rather than hide the fee but still be required to submit our HST fees collected to the government.

Thanks,

Sandy

[Dawn298]

Hi Sandy @John5907 

ABB collects and submits it for is. It shows up as "Occupancy taxes" under "Guest pays." I didn't have to do anything it automatically is added and submitted on my behalf. I believe that this is only for Toronto rentals. If you are in Haliburton then this 4% tax will not apply to you. I hope this helps.  : )

[Colleen253]

There are links with more information within the email. Also, this only applies to stays booked after July 1 2022. 

https://www.airbnb.ca/help/article/2283/tax-collection-and-remittance-by-airbnb-in-canada

Hosts with Airbnb listings who aren’t registered for Goods and Services Tax (GST), Harmonized Sales Tax (HST), and/or Québec sales tax (QST) won’t have any obligation to collect and remit the GST, HST, and/or QST on their accommodation themselves. The National law will require Airbnb to collect and remit these taxes on their behalf.

Hosts with Airbnb listings who are registered for GST, HST, and/or QST should continue to account for the GST, HST and/or QST on their accommodation. If this applies to you, you’ll need to provide your GST, HST, and/or QST ID to Airbnb so that Airbnb won’t collect and remit these taxes on top of your accommodation price. If you self-collect GST, HST, and/or QST, please provide this information to avoid changes to your pricing.

@Christine3207 @Dawn298 @Nan-And-Michael0 @Irina195 

[Willene1]

Just so you are all aware, the advantage of being a GST/HST registrant does allow you to claim back all of the GST/ HST you paid on expenses that relate to your Airbnb. These are ITC’s  (input tax credits). You can deduct these taxes paid from the GST/ HST collected.   It can be a benefit for some, however then you will have to charge the GST/HST  and file the returns yourself.   It is mandatory if your revenue is  greater than $30,000 but you can register to get the credits even if your revenue is less if it benefits you.