Good Afternoon, I have been a dedicated property manager for...
Good Afternoon, I have been a dedicated property manager for the past eight years and have a deep passion for the industry. H...
Hi all, this is a very confusing topic, but I've done a lot of work trying to fully understand the situation. I'm going to lay out how I see what an average host in BC should be charging for taxes and I'd love to hear your thoughts. I hope this is helpful for some of you.
"If your gross rental income exceeds $30,000 in a 12-month period, you would be required to register for and collect GST/HST.
Airbnb collects and remits GST/HST on behalf of property owners who do not have an obligation to remit themselves. Therefore, if you exceed the $30,000 threshold and are required to register, it is important to provide your GST/HST number to Airbnb so they can adjust their invoicing accordingly.”
I do make more than 30k in 12 months, so I got a GST number and attached it to my listing.
Here is a screenshot of a recent booking of mine.
I know that the Occupancy tax consists of 8% PST and 3% MRDT. It DOES NOT include GST. In the payout summary I don't see GST being charged by Air BNB.
This is the backend of my account showing what taxes are paid.
So I have created a customized 5% GST tax that I charge all my clients so that I can self-remit my own GST.
When I read the below Air BNB page this is what I understand from it.
https://www.airbnb.ca/help/article/2283
If you add a GST number to your listing you have to start collecting your own GST and remitting it because Air BNB won’t do it for you. I don't think this was communicated very well to hosts so I just wanted to lay out this whole situation and go other peoples thoughts on it.
Cheers
