New Occupancy tax collection in Ontario is not clear

[Normen0]

Hello all, 

We are in Ontario, Canada and inputted our HST (13%) tax number prior to July 1 so we charge and collect HST and remit to the government. (We we’re doing this before but didn’t have a number) As of July 1st if you didn’t have a number, AIRBNB states they would collect and remit for you.  

Any bookings since July 1st now have a HST property tax collected and sent to us (same as before) but also another Occupancy tax is being collected and kept by AIRBNB.

We were not made aware of any additional tax being applied prior to this by the city. In fact we attended a City council meeting June 1, 2022 at which time they said that MAT was a discussion for another time.  We did receive a message from AIRBNB in June about Occupancy tax being added but in the message they listed GST/HST and other tax acronyms as applicable to your area but it was all confusing and what we gleaned from it was that we would have to enter our HST number, same message as we received on the platform numerous times..

As I manage a few properties, I checked them all and yes this is happening for all listings. The odd thing is that the local occupancy tax (MAT which all hotels pay) is 4% . At my personal space the Occupancy tax being charged is less than 4%. At other locations it’s being charged at varying rates up to 18%. So some locations are now charging the guest up to 31% tax. Like what?!?   

And in local FB groups it’s happening everywhere even where they are certain there township is not collecting a MAT. 

Other hosts have called CS and of course they do not have answers and if they think they do, they are all different. 

Are there any admins here know what is going on?? If not, can they get the message to AIRBNB that this is all confusing and I’m sure many hosts aren’t even aware this is happening. With extra unknown taxes we will have to lower our rates again. Likely some hosts aren’t booking due to this.

We already lost tons of business due to the new headings that focus on lakefront/view properties over and above all other listings (we are waterfront but it’s a river so we don’t get hardly any views now). 

HELP! 

[M199]

@Normen0 

It is a crap show.  I had a post July booking that showed GST of around 1.5%.  Also, though Airbnb is deducting and remitting GST, there is nothing communicated about the monthly or quarterly reporting.  I have heard rumor that there is a bulk payment from Airbnb to CRA, and that possibly, the remittance will include the GST number, if there is one.  However, if no GST is available, it the remittance will be remitted under the legal address of the listing.

With regards to the MAT, here in South Bruce, hosts deduct and remit directly, Airbnb has continued to send the taxes to me for remittance go the both tax authorities.

This whole situation is probably best answered by a professional accountant or tax lawyer.

[Paula1808]

I am in NS and have supplied my hst number but support is unable to help me get my pricing to charge guest for hst.   And now it shows an occupancy tax charged to guest but it is not for 15% .   I have contacted support numerous times but no one at support can figure it out and say they will escalate my issue but everyone that contacts me cannot figure it out either.