HST collection with tax number, post July 1, 2022

[Alloy1]

If you enter a HST/Gst tax number in Airbnb,  they will not collect and remit the tax on your behalf. How are the taxes collected from guests (as required by law) by hosts who have a tax number?

[Sybe]

Hi @Alloy1 ! If you need to file and pay taxes yourself, I believe you'll need to include them in your nightly price. Perhaps @M199 , @Annie1372 or @Lawrene0 could shed some light on this? 😃

[M199]

@Alloy1 

@Sybe , @Lawrene0

Hello All,

The HST/GST taxes need to be set up using the desktop browser.  It cannot be done via the mobile app.  Taxes are a separate item.  They cannot be included in the nightly rate and must be shown separately.  Below are print screens of my account for you to follow, if need be.  Basically, on the web browser, go to your listing, select Listing Details, then Pricing & Availability, Custom Tax Collection,  Tax Type (Sales Tax), select all options and save.  Please read below photos.

HST/GST is 13% of all services provided to the guest, this includes but not limited to room rate, cleaning fees, admin fees, etc. 

You will need to register with CRA for the tax account number, it can be done online.  Follow the instructions on this link.  https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses.html

Once you register with CRA, you will then need to register with the Ontario Ministry of Finance.  If I recall, CRA takes you through the process. 

Please note that you can remit and report monthly or quarterly, that's up to you.  I prefer the remit this way and not let Airbnb control my remittances.  As well, Airbnb DOES NOT complete the reporting piece of your remittance.  You still need to do that, along with an annual reconciliation.

[Alloy1]

Hi M199,

Thanks for the info.

I know how to get the tax # and where to enter the information on Airbnb. What I was trying to determine is how it was collected.
After you enter your tax info, is the tax shown to the potential guest on the price breakdown prior to booking? 

(I got curious when I noticed some hosts price breakdown (prior to booking) shown no taxes on it.)

[Lawrene0]

Hi, @Alloy1 . Go to "Listings" then to "Pricing and Availability". Scroll down to "Taxes". Choose "Edit". Under "Custom tax collection" choose "Add a tax". 

That's how I think it works. Since adding my HST number, I've had my calendar closed so have not had to think about it. You might want to listen to someone who is actively doing it at the moment. I know there was a great deal of talk about it in the Airbnb Toronto and GTA facebook group back in the summer, so you could dive into those posts and see. 

Btw, what a lovely listing you have! 

[Alloy1]

Thanks Lawrene0; we put great effort to ensure our listing is lovely.

I know how to acquire the tax number and how to enter the information on Airbnb, I just wanted to understand how these hosts collect the taxes from the guest.

I’ll follow your suggestion and check out the GTA Facebook group discussion on the topic.

 Appreciate the help 🙏 🙏