Tax

[Gulab1]

Why some Airbnb's doesn't charge tax when you book it? 

[Mike-And-Jane0]

@Gulab1 I can answer for the UK. VAT (20%) is only charged on the Airbnb fee unless a listings owners have a revenue above £85,000/year. In this situation 20% VAT should be charged on the full amount.

[Lorna170 · Accepted solution]

Not every tax location has an agreement with AirBnB to collect the taxes.  Not every host will separate the taxes from the booking rate. Some owners are new to AirBnB and don't know that they should be collecting taxes.

My friend chooses to pay the taxes owed from the nightly fee she collects, so her guests do not know if she is collecting or paying the taxes.  Her property location does not have an agreement with AirBnB to collect taxes from the guest via the booking site.  

Another friend started with AirBnB and did not know that he was supposed to collect taxes and did not enter the taxes on the website.  He assumed that AirBnB [magically] did it. He received a delinquent tax notice from the tax authority.

AirBnB has an agreement with my State/County/Municipality and collects the taxes so my guests will see a charge on their booking for taxes.  

[Gulab1]

Yes, i’m in Ontario and at my listing, my guest automatically get charged the tax.

[Emilie]

Hi @Gulab1, 

In addition to the information Mike and Lorna kindly shared, I wanted to share these article that you might find interesting as it gathers quite a lot of information on this topic as well: 

Responsible hosting in Canada

How taxes work for hosts

Once you've had a look at all of this, if you have any more questions, please let us know! 🙂

Thanks,

Emilie