Tax

Gulab1
Level 1
Timmins, Canada

Tax

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

3 Replies 3
Mike-And-Jane0
Top Contributor
England, United Kingdom

@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
Level 10
Swannanoa, NC

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.  

 

 

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