GST is not Occupancy Tax

[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?

[Mike-And-Jane0]

@Claire1975 Not sure if it is the same in Canada but our VAT (effectively a complex sales tax) is, unless a host is VAT registered, only charged on the Airbnb service fee and is solely an issue for Airbnb. 

Anyway as this is a Community Centre and not Airbnb no one here can really help you. Surely your tax authority is best placed to approach Airbnb and get it sorted.

[Mike-And-Jane0]

@Claire1975 Further to my answer below have you read the following?

Ive only scanned it but it suggests unless you are registered for GST it is Airbnb's problem.

Tax collection and remittance by Airbnb in Canada

Country of Canada

Guests who book Airbnb listings that are located in the country of Canada will pay the following taxes as part of their reservation:

• 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.
• Airbnb is registered with the Canada Revenue Agency under business number 723689006 RT000100.

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.

Need more help? Find out why Airbnb is requesting your Canadian GST info. You can also find more information about GST, HST, and/or QST on the Government of Canada website.

Note: The National law doesn’t impose the tax collection obligation on Airbnb for GST, HST, and/or QST registered Hosts.

Please see below for more information about other taxes that Airbnb collects and remits in Canada in addition to the National GST, HST, and/or QST.

Province of British Columbia

Guests who book Airbnb listings that are located in the Province of British Columbia, Canada will pay the following taxes as part of their reservation:

• Provincial Sales Tax: 8% of the listing price including any cleaning fees and guest fees for reservations 26 nights and shorter in the Province of British Columbia. For detailed information, please visit the British Columbia Sales Tax website.
• Provincial Sales Tax: 7% of the applicable service fees. For detailed information, please visit the British Columbia Sales Tax website.
• Municipal and Regional District Tax: 2%-3% of the listing price including any cleaning fees and guest fees for reservations 26 nights and shorter in the Province of British Columbia. For detailed information, please visit the British Columbia Sales Tax website.

Province of Manitoba

Guests who book Airbnb listings that are located in the Province of Manitoba will pay the following taxes as part of their reservation:

• Retail Sales Tax: 7% of the listing price including any cleaning fees and guest fees for all reservations 30 nights and shorter. For detailed information, visit the Province of Manitoba Sales Tax website.

Province of Québec

Guests who book Airbnb listings that are located in the Province of Québec will pay the following taxes as part of their reservation:

• Lodging Tax: 3.5% of the listing price for reservations 31 nights and shorter in the Province of Québec. For detailed information, please visit the Québec Revenue website.

Province of Saskatchewan 

Guests who book Airbnb listings that are located in the Province of Saskatchewan, Canada will pay the following taxes as part of their reservation:

• Provincial Sales Tax (PST): 6% of the listing price including any cleaning fees for all reservations 30 nights and shorter, excluding tent or trailer sites supplied by a campground or trailer park. For detailed information, please visit the Saskatchewan Provincial Sales Tax website.

Barrie, Ontario

Starting June 1, 2019, guests who book Airbnb listings that are located in the City of Barrie, Ontario will pay the following taxes as part of their reservation:

• Municipal Accommodation Tax: 4% of the listing price including any cleaning fees for reservations 29 nights and shorter. For detailed information, please visit the Barrie Hotel Accommodation Tax website.

Brockville, Ontario

Guests who book Airbnb listings that are located in the City of Brockville, Ontario will pay the following taxes as part of their reservation:

• Municipal Accommodation Tax: 4% of the listing price including any cleaning fees for reservations 29 nights and shorter. For detailed information, please visit the City of Brockville website.

Cornwall, Ontario

Guests who book Airbnb listings that are located in the City of Cornwall, Canada will pay the following taxes as part of their reservation:

• Municipal Accommodation Tax (MAT): 4% of the listing price including any cleaning fees for reservations 29 nights and shorter. For detailed information, visit the Cornwall City Finance website.

Greater Sudbury, Ontario

Guests who book Airbnb listings that are located in the City of Greater Sudbury, Ontario will pay the following taxes as part of their reservation:

• Municipal Accommodation Tax: 4% of the listing price including any cleaning fees for reservations 30 nights and shorter. For detailed information, please visit the City of Greater Sudbury website.

Mississauga, Ontario

Guests who book Airbnb listings that are located in the City of Mississauga, Ontario will pay the following taxes as part of their reservation:

• Municipal Accommodation Tax: 4% of the listing price including any cleaning fees for reservations 30 nights and shorter. For detailed information, please visit the City of Mississauga website.

Ottawa, Ontario

Guests who book Airbnb listings that are located in the City of Ottawa, Ontario will pay the following taxes as part of their reservation:

• Municipal Accommodation Tax: 4% of the listing price including any cleaning fees for reservations 29 nights and shorter. For detailed information, please visit the City of Ottawa website.

Toronto, Ontario

Guests who book Airbnb listings that are located in the City of Toronto, Ontario will pay the following taxes as part of their reservation:

• Municipal Accommodation Tax (MAT): 4% of the listing price for all reservations. For detailed information, please visit the Toronto Municipal Accommodation Taxwebsite.

Waterloo Regional Tourism District, Ontario

Guests who book Airbnb listings that are located in the Waterloo Regional Tourism District (cities of Kitchener, Waterloo, Cambridge, Woolwich, Wellesley, and Wilmot only) of Ontario, Canada will pay the following taxes as part of their reservation:

• Municipal Accommodation Tax: 4% of the listing price including any cleaning fees for all reservations 29 nights and shorter. For detailed information, please visit the Waterloo Regional Tourism District website.

Windsor, Ontario

Guests who book Airbnb listings that are located in Windsor, Ontario will pay the following taxes as part of their reservation:

• Municipal Accommodation Tax: 4% of the listing price including any cleaning fees for reservations 30 nights and shorter. For detailed information, please visit the City of Windsor website.

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Find out more about how occupancy tax collection and remittance by Airbnb works.

Note: Hosts located in these areas are responsible for assessing all other tax obligations, including state and city jurisdictions. Hosts with listings in these areas should also review their agreement with Airbnb under the Terms of Service and familiarize themselves with the Occupancy Tax provisions which allow us to collect and remit taxes on their behalf and explains how the process works. Under those provisions, hosts instruct and authorize Airbnb to collect and remit Occupancy Taxes on their behalf in jurisdictions where Airbnb decides to facilitate such collection. If a host believes applicable laws exempt the host from collecting a tax that Airbnb collects and remits on the host's behalf, the host has agreed that, by accepting the reservation, the host is waiving that exemption. If a host does not want to waive an exemption the host believes exists, the host should not accept the reservation.

[Joan3127]

Please be careful with this information. If you register your GST number, then ABB absolves itself of any GST collection. You will have to pay your GST out of your revenue. You will also have to calculate  GST owing on your own or most likely with an accountant's help. 

[Jaye43]

Hi Clarie - we have the same questions (per my accountant as well) - and I haven't had any luck with Airbnb either other than them sending me the link provided below as well.  Have you had more luck or information on how to be reporting on this in our taxes? 

[Lisa7028]

@Jaye43 @Claire1975 I also ,as a HST registrant ,am getting mixed information from both CRA and Airbnb.  Airbnb stated in a message that they confirmed that they are collecting the HST, which is supposedly lumped in with the occupancy taxes, but they said that they are not allowed to discuss how they calculate the HST??  All I know is that I do not see an actual HST breakdown on my end and neither does the guest. And the occupancy taxes do not add up to 13% which is the HST in Ontario.