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. 

[Dawn298]

Thank you, Colleen253, for your reply and the links. It is much appreciated! : )

[Glenda142]

I am in Ab. I don’t make $30 g. I have no pst or municipal tax. Does this mean I have to apply for a tax number.

how do I find out if they will take this off my monies.

I can’t get help anywhere and my acct says under $30 g I don’t need a tax number.

[Colleen253]

@Glenda142 There are links in the email notice about this change that should provide more info. Have you checked them out?

[Robin1063]

Hello all! 
im totally new to Air bnb, I have an empty apartment at my home in Ontario and wanted to offer it for refugee use relating to Ukraine. I was t interested in additional income, just wanted to help. 
as I understood so far, abb will block calendar bookings until I get a gst number?  I won’t earn any income on property, or well below the 30k requirement for gst registration as a small supplier? 
did not expect to run into this hurdle! I’m a big supporter of KISS! 
anyone clarify what is required to resolve this. 

[Paul7222]

Hello Everyone ...

Does anyone have any info from AIRBNB regarding GST and long-term stays (ie., 30 days or longer)?  Please see below for info that I have found.

I, too, have received the AirBnB request for GST info and the notification for charging GST after JULY01, 2022.  From my research online and via the CRA website, there are two parameters involved here:

1.  GST is charged on income of $30,000 or more, and,

2. Per the CRA, Starting July 01, 2021 (with a deferral until July 01, 2022) any Accommodation platform means a digital platform through which a person facilitates the making of supplies of short-term accommodation situated in Canada by another person that is not registered under the normal GST/HST, will need to charge the GST.  (unless you supply your own GST number)

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/digital-ec...

AirBnB has not mentioned how they will treat long-term stays ...  for some hosts, we do nothing but 30 day+ stays and under the CRA this is considered as a long-term stay and is not subject to GST.

The rental ....

• is rented as a place of residence or lodging by the same individual for a continuous period of one month or more

Thank you.

[Patty33]

following. My question exactly. 

[Neill23]

Thank you for all of the previous postings - I have learned a lot in a hurry.

Has anyone implemented the changes yet? I am curious as to whether there will be a separate line to charge GST over and above existing rates when a guest goes to book, or whether it is included in the existing rate.

Eg. our current regular rate is 688 per night.   A guest looking to book for three nights sees:

$688 x 3 nights                         $2,064

Cleaning fee                              $   339

Service fee                                 $   339

Occupancy taxes and fees $   240

Total                                                $2,982

Once we enter our GST number, will a guest see a separate line for GST over and above, or will we have to back that out of our rent (688 + GST or 688 including GST) and cleaning fees (339 + GST or 339 including GST)?  If it isn't a separate line, we will have to adjust prices accordingly, or eat the 5%.

Our ABB listing is a seasonal property located in on Vancouver Island, and currently ABB is collecting the BC PST and the Municipal and Regional District tax over and above our rental rates (reflected in the last line of the booking quote).

Thanks

[Juhlie0]

Have you had any answers about your question?  I am wondering the same thing and Air BnB isn't really answering my questions - I have called and messaged and they keep referencing articles that don't help.

[Nerine0]

Hi all,

Just to make things even more interesting, yesterday I got a telephone call from an Airbnb "Ambassador", and he gave me this incredibly fast blurb on registering for a GST/HST number because on July 1, everthing is going to change.  I was half asleep as it was 7am, and he ended the spiel with a comment that he will send this all in an email.  So boom, I check the email and it didn't make sense. I went back to him later in the day to ask why I am being asked for this because my cottage doesn't bring in more than 30,000 and then he replied with this.  I can't find anything about the 30,000 changing to 18,000.  Can anyone else?  I'm very frustrated by being directed to articles that mean nothing to me (confusing) or to contact an accountant or lawyer.  

**

 **[Private conversation removed in line with the Community Center Guidelines]

[Glenda142]

Yes, same in Canada but CRA told me I don’t need to charge GST as  under $30 G. I have to pay my accountant extra thousand a yr to sort it. I’m small one rm business, it’s not worth the hassle and $$ for me. Different answers each time so I just told Air Bnb I’ll quit by end of June.

It seems unethical to me to charge guests an extra 5% on top of all other fees when your gov does not legally require it.

Air Bnb said they’d help me to quit so that’s the best solution for me.

I’ve not got clear answers so called my MP gov rep to look into it and they told me I’m not required to charge GST so this is best for me and my guests. 
I hope you can find a solution👍

[Glenda142]

Oh I meant to add if I contact a lawyer like suggested that will cost a lot. I paid my accountant to do a review and it’s just too gray an area to get caught in GST cycle for small business.

I was a big B&B on my own for over 30 yr so know the scoop well. I did it without Air BnB and just added Air last yr as retired from big business down to one rm. so it’s just not worth the hassle when legally it’s not required. It’s a money grab from the guests when it’s not required. Imho.

[Jeremy796]

I talked to someone from Airbnb today who informed me that the GST threshold was going to $18K from $30K on July 1st.  I really don't believe it and they're doing it to get us to put in the GST number. Which I don't have. 

[Leah495]

According to my accountant, there is no GST requirement on long term stays. I can’t find anyone at Airbnb to speak to about this since we only offer long term stays.

[Paul7222]

Hello Everyone, 

From my understanding, the reason AIrBnb is 'demanding' a GST number from hosts is because the Canadian Federal Government has a new 'Digital Economy' tax policy that takes effect on 01July22.  https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/digital-ec...

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/digital-ec...

Under this new policy, all vacation rentals will need to charge GST on stays.  According to the information we have found, it seems that GST is not applicable on stays of 30 days or longer and if you make under C$30,000 per year, according to the CRA (Canada Revenue Agency).

AirBnB normally deals with short-term stays and the conundrum now becomes that AirBnB refuses to distinguish between stays of 30 days plus and short term stays for the sake of GST.  So, AirBnb is forcing those of us that do long-term stays exclusively to either supply a GST number or guests will be charged GST regardless of the length of stay.   Hence, we keep getting these constant emails to input a GST number, even though by Canadian tax policy, it seems that we do not need to collect nor charge it.  

The only work-around that I have discovered to date, is to gain a GST number, supply it to AirBnB to avoid guests being charged.  However, this will require the filing of a 'no GST owing' quarterly (or annually) GST report.

Overall, this is a great example of government creating a new policy without fully reviewing implications and company over-reach by not taking the appropriate measures to make things easy for their customers.  

The above is only the information that I have been able to research on my own.  You are recommended to verify anything with your own accountant or tax specialist and/or the CRA etc.

[Paul7222]

@Christine3207 

Interesting Update RE GST and Long-term Stays!

This week, I was contacted by AIrBNB regarding the new GST requirements.  It was interesting because I had not reached out to AirBNB recently, yet the agent mentioned she was responding to a recent ticket.

The good news here is that the requirement insisting upon a GST number for all stays to avoid GST on long-term stays seems to have now changed.  The agent indicated that GST would not be charged to the guest on monthly stays automatically.  Here are the links that she kindly provided:

https://www.airbnb.com/help/article/3198

(scroll down to the section named 'HOSTS')

"GST, HST, and/or QST on the listing price and any cleaning fees does not apply to stays of longer than one month. If you only host stays for longer than one month, taxes will not be charged on the accommodation."

What gets really interesting here is that I asked the agent for the definition of 'month'. i.e., how many days or nights.  Her response was 30 nights.  However, under the CRA policy short-term accommodation is defined as "less than one month".  Therefore, GST should not be applicable to stays of 30 nights or longer.

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/digital-ec...

(Look for the section: Short-term Accommodation - I have attached a screen capture)

I raise this point because doing test bookings for my listing, GST was being charged for 30 night stays, but no longer for stays of 31 nights and greater.  Obviously, a programming error on the booking engine.  Thankfully, AirBNB has now tried to rectify the issue with GST and long-term stays.  Unfortunately, it is not quite right, yet.

In addition to the above issue, I also discovered that the booking engine was now charging municipal taxes (BC) for all my stays, regardless of length of stay.  Yet, in BC municipal taxes are only charged on stays of 26 nights and less.  Clearly, this is another error.

After providing the agent screenshots and further detail, she kindly escalated the above issues to the Regulatory Affairs department.  Following up with this new agent, again the case has been escalated again and I am now awaiting resolution.  

Please also keep in mind that if you make C$30,000, you will still need to charge / submit GST.

Hopefully, the above will be helpful to all Hosts that are doing long-term stays in Canada.  

Good Luck.

*this is information that I have been able to determine on my own.  Please be sure to verify anything yourself or with your accounting professional*