How to collect the 13% Costa Rican tax?

[Chuck1]

Is there a better way to collect the Costa Rican 13% occupancy tax other than by inflating the villa's daily rate? I think my place is at a disadvantage relative to other properties because I am adding the tax to the daily rate.

What has your experience been?

Chuck **

Dominical, Puntarenas, Costa Rica (property location)

[Clare0 · Accepted solution]

HI @Chuck1, the only other way to collect it is by getting the guest to pay for it when they arrive.  I just include it in my nightly price which I think most hosts do. 

https://www.airbnb.com/help/article/654/what-is-occupancy-tax--do-i-need-to-collect-or-pay-it

[Alan91]

I believe that it would be easy for AirBNB to have an option to insert a tax percentage and allow us to collect it in that way, rather than adding it to our booking rate.  Many hosts are not paying it and I completely agree with Chuck that it puts us at a disadvantage.  A booking that would list at $200 without tax would be $226.  The increase of $182 per week definitely could steer searches to comparable rentals not paying taxes.

[Alan91]

A local English language online newspaper in Costa Rica reported a week ago that AirBNB is in discussions with the tax ministry of Costa Rica to begin collecting the occupancy tax.  I hope they will do it soon.

[Jeff-And-Cheryl0]

As a heavy airbnb guest, 20+ stays in last 9 months thru Europe and now Costa Rica, of course I don’t want to pay any tax J - but understand the issues and don’t have an issue in pay a VALID tax - but have an issue on how its handled now.

Taken directly from airbnb website on how hosts may handle: "or asking your guests to pay it in person. In each case, it's important that guests are informed of the exact tax amount prior to booking."

I would like to see airbnb collect the tax so as a guest I’m sure the tax is really a tax and is the CORRECT amount and not a way to get more money like many resorts adding a "resort fee" on top of what you booked….or airlines charging baggage fees.

I also do not want to carry that amount of cash – and talking to hosts – they don’t want to have that cash on hand or have to be on site for every guest.

Secondly, the Host should put the tax amount that will be expected to be paid in person in the Description as well as in House Rules – full disclosure. How can you do an Instant Book and be sure the guest is aware of the tax? – 13% in Costa Rica is pretty steep!

Just my 2 cents –

Jeff and Cheryl

[Sebastian121]

One quick question has the 13% tax already been imposed for all the housing and accommodations in the Costa Rica region?  

[Alan91]

It is required to be paid.  However, AirBNB has done nothing to facilitate collection or payment.

[David126]

I thoughtg this was more a US issue as in most countries outside the US prices inculde other charges.

[Jeff-And-Cheryl0]

Please see my prior post on this thread.  I was in Costa Rica January - March (many airbnb stays) and some hosts asked for it in cash - some did not.  Airbnb needs to address this tax collection to keep it simple and transparent for both Hosts and Guests.  Lets hope that airbnb doesn't try to make these tax collection another hidden profit item like they do with the "3% conversion fee was applied to this booking" when booking international in some locals. 

[Sebastian121]

Dear Airbnb Community, 

I have been working on an investigation about the 13% tax implemented for the Airbnb in Costa Rica. I would be grateful if you would fill in a questionnaire based on the topic mentioned above.There is only two surveys, one for Hosts and one for Guests of Airbnb. It will acquire three simple answers and it would take you no time. I appreciate your collaboration and thank you for your time.

https://docs.google.com/forms/d/e/1FAIpQLSdaSpY0redhQimYs5g386Rgy-NMjNs39x_rV0Fh3k0UgypizQ/viewform?... - Hosts

https://docs.google.com/forms/d/e/1FAIpQLSfZLJXjTFLlMF8mQlaXp8B6Hn_T1-sKswo5YzskBWrke3HqVw/viewform?... - Guests 

[Jorge84]

Sebastian,

As a Costa Rican host I'm very interested in knowing more about you research. Would love to get in contact.

Jorge

[Waltraud--Kiana-0]

Hi Sebastian,

Just now I'm seeing the discussion about the CR I.V. I tried to answer the questionaire , but its not accepting any anymore. So what are your results of your investigation about the 13% tax in Costa Rica? I dutifully pay it every month to Hacienda as we have always done already way before we started listing on airbnb. The only problem is that we are earning now much less since we had to even lower our base rate on the platform in order to have still 'good' rates. And of course we are in disadvantage to all of those who don't pay their taxes in CR!

[Mauricio316]

Hello Sebastian, 
I'm Mauricio, just last week I decided to venture with one of my properties into the airbnb platform.
I have a couple of questions as I'm starting to recive guests on wed, I need to know what is the most convenient system of payments one could use to charge the booking costs.
Te podría hablar para aclarar un par de dudas?

Gracias!

Mauricio

[Saundra5]

Hi, I'm new to AirBnB hosting. I live and host in Costa Rica. I am reading and hearing different amounts and I want to be sure I am collecting the correct amount.  QUESTIONS - 1] Are there any updates on Occupancy Tax collection?  2] So far, I have only seen information about 13% but I have been told it may be as high as 23%??? 3] Also, is tax collected per person or per night?  4] Also, for those collecting from your guests, how do you word this in your description and house rules so guests understand before they book?  5] What responses have you gotten from guests when they are presented with additional tax fees? ---- AirBnB has a "Special Offer" feature that the literature said could be used to collect the tax. I read this and I'm not sure if this solves the problem or creates more confusion.  So, any clarity would be most welcomed.  I love hosting. I love my guests. I for certain I love this opportunity. And I would like to get this right.  Thanks ~ 

[Alan91]

Hi, Saundra,

1.  I contributed to this thread last year, and I haven't seen any updates

2.  As far as I know the tax is 13%.  However, to pay it you need to be registered with the tax authority in CR, and so your corporation is also subject to income tax on your profit.  That may be where the additional amount came from, but, like any business, all your expenses are deducted before the tax on the profit.

3.  The 13% tax is a percentage of the total rent.

4.  I mention that tax is included in the booking, but guests don't really pay attention.  I just set my nighly prices and then the tax comes out of my share.  This is not a good solution.  AirBNB should allow us to show this as an additional line, after people search for and select our property.  Paying it out of my basic charge means that my income is less.  I did raise my rates a little to partially cover it, but building in the full 13% would make my charges too high.  So I am losing some money on it, and those who don't collect or pay it put me at a disadvantage.

5.  I think "special offer" or "collecting it when you arrive" is a turn-off and non-starter.

AirBNB should have an automatic line item which adds a 13% Costa Rican tax on checkout.  They do that in some places.  I don't know why they don't in CR.    I also wish someone from AirBNB would monitor this forum and post a response.