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. 

[Paul7222]

NEW Update RE GST 

@Christine3207  @Jeremy796 @Leah495 @Glenda142 @Nerine0 @

Hi Everyone, 

Yet another new development regarding GST being charged on long-term stays in Canada.

- it appears that GST is still being charged on stays of 30 nights, but not stays of 31 nights or longer.  This is still incorrect as the Federal Government.  

- also the charging of BC municipal taxes for stays of more than 26 nights seems to now have been fixed and are no longer being charged.  

It is great news that this issue has been partially rectified.  I have again reached out to AirBnB to try and resolve this last inconsistency.  Hopefully, it is fixed soon!

Please remember that the above info is simply what I have been able to discover on my own and I suggest you research on your own or contact your accounting professional.   In addition, as far as I know, GST is also not charged/collected on revenues less than 30K in one-12 month period.

Good luck.

[Glenda142]

Thank you. Yes after months I got AirBnB to clarify no GST under $30g. 

I have a question. I lost my superhost status and it said due to cancellations. Am I responsible if a guest cancels as I’ve done no cancellations?

have a good summer folks. Glenda

[Neill23]

@Glenda142 My understanding is that only cancellations initiated by you count, and they need to be less than 1% of your annual bookings.  It might be worth contacting support.

[Neill23]

@Paul7222 
Thank you for the update.

"In addition, as far as I know, GST is also not charged/collected on revenues less than 30K in one-12 month period."
For hosts with <30k of revenue, they are not required to register for a GST number or provide it to ABB.  ABB will collect and remit the GST on those listings directly.  

[Loli84]

Thank you for doing this @Paul7222 .

It even contradicts what ABB shows up in search results for monthly stays. For example f I want my listing to show up for flex monthly stays, they expect my stay to be 30 nights, but then they apply the gst/hst/qst. If I change to 31 nights min, there is no tax added, but the listing doesn't show up in quick flex monthly searches.

Even more so, my check out time is later than the check in time, so impossible to have a new check in until the next day, which makes it is a full 30 nights/31 days, and still have the tax added for 30 nights. 

For now I am verbally advising in my listing for 31 days to avoid the glitch, but I feel this issue could affect the demand in booking and/or overcharge the guest pointlessly.

Really hoping this will be corrected somehow...

[Paul7222]

Hi @Loli84 

The current problem is exactly as you have detailed in your response above - well done.  The whole definition of what a month is:  29 nights = 30 days or as AirBNB has defined it as 30 nights = 31 days, which does not jive with the Digital Economy info and the GST applicability periods defined by the CRA.

I have actually been researching and reaching out to AirBnb since March on this issue.  We have made progress, with just this last obstacle to hopefully overcome.  i.e., GST not be charged on stays of 30 nights (31 days), which is longer than one month (30 days).  Previously, AirBnB was charging GST on all long-term stays, which of course was an error.

Everyone should keep in mind that this dialogue is focused on GST and long-term stays.  Under the new Digital Economy rules, GST will be applied to all short-term stays (whether you make less than $30k per year, or not).

For reference:  See section 'Short-term accommodation'  https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/digital-ec...

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/19-2-2/residential-...

Please note that the above information is only what I have been able to discover on my own.  You should always consult your own tax and accounting professionals.

[Paul7222]

@Christine3207 @Loli84 @Neill23 @Glenda142 @Jeremy796 

Hello All - Here is the latest support information about GST and long-term stays that I have received from AirBnB.  You will notice in the last paragraph that they have contradicted what was said at the beginning.  The distinction between 30 days and 30 nights seem to be a continued source of confusion for AirBnB. The last paragraph is correct, according to the information from the CRA that I have researched.  

The following is direct from AirBnB:
-------------------------------
"I would like to inform you that Goods and Services Tax (GST), Harmonized Sales Tax (HST), and/or Quebec Sales Tax (QST): 5-15% of the listing price including any cleaning fees for stays 30 nights and shorter. If you only host stays for longer than one month, taxes will not be charged on the accommodation. Guest fees are also subject to the 5-15% GST, HST and/or QST. For detailed information, please visit the Government of Canada website.
Hosts with Airbnb listings who aren’t registered 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 GST, HST, and/or QST registered 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.

For more information about it, check out our Help Center article:

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

Hence, GST will be applied on the reservation for 30 days or less. If the reservation is for 31 days and more no Gst will be applied"

--------------------

Please be sure to review any information with your own accounting and tax specialists. This is simply information that I have been able to research.

[Eugen874]

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[Eugen874]

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[Paul7222]

UPDATE - 12AUG22

@Christine3207 @Glenda142  @Eugen874 @Loli84 @Neill23 

Hi Everyone, 

Thought you might appreciate an update regarding the GST still being charged on stays of 30 nights in Canada.  Per my other posts, as of 01JULY, GST will be charged on all monthly stays in Canada.  The problem has been that AirBnb is charging on 31 days (30 nights) and less; and it should be 30 days (29 nights).

AirBnb has now gone silent on this issue and have yet to make the change.  Has anyone else made any headway with AirBnb on this important issue?  It severely affects monthly stays, as guests will be forced to pay an additional 5% on stays of 30 nights (31 days) incorrectly.  They will not be charged on stays of 31 nights and longer.  

Even VRBO has gotten it right.  See below screenshot.  GST applies to "all reservations in Canada under 30 nights"

Note: please verify any info with your own tax or accounting professional. The above simply reflects information that I have researched independently.

[Paul7222]

a little edit for the above post for clarification purposes.

Thought you might appreciate an update regarding the GST still being charged on stays of 30 nights in Canada.  Per my other posts, as of 01JULY, GST will be charged on all short-term stays in Canada, but not monthly stays.  The problem has been that AirBnb is charging on 31 days (30 nights) and less; and it should be 30 days (29 nights) and less.

AirBnb has now gone silent on this issue and have yet to make the change.  Has anyone else made any headway with AirBnb on this important issue?  It severely affects monthly stays (30 night bookings), as guests will be forced to pay an additional 5% on stays of 30 nights (31 days) incorrectly.  They will not be charged on stays of 31 nights and longer.  

[Glenda142]

Managers at Air Bnb told me I did not need to claim gst due to not qualifying. 
I was in process of quitting when this was going on. I was not going to continue, in meantime someone booked for 16 months out but I had to cancel them as was quitting as Air Bnb wouldn’t answer me. So now I lost my superhost due to their indecision.

[Neill23]

For those of you who have added your GST number to your listing, in reading on these forums we have been able to add the GST to our listing so that we do not have to "eat" it out of our nightly rate.  See photo below

- Turn on Professional Hosting Tools
- In Listing/Pricing and availability/Taxes, scroll to Custom tax collection.  We added VAT/GST of 5%, which means that it get charged on top of our nightly rate/fees, and sent to us by ABB to remit.

As always, talk with your accountant - adding your GST number may trigger GST due at time of subsequent property sale in the future.