Hi, where can I get a Georgia license.for a temporary rental...
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Hi, where can I get a Georgia license.for a temporary rental airbnb.
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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
Top Answer
This article (https://www.airbnb.ca/help/article/2283) says tax is applied to "the listing price including any cleaning fees for stays 30 nights or fewer. If you only host stays for longer than one month, taxes will not be charged on the accommodation. Guest fees are also subject to the 5–15%"
In the example below, I believe $839.91 is what the tax would be applied to.
If Air BNB is remitting my GST for me, that means that they are charging 8% for PST, 3% for MRDT, and 5% for GST. That's 16%.
For the above example, 16% of $839.91 is $134.3856, and the taxes they are charging (Occupancy taxes) equals $97.59. So they are about $37ish short... I assume they are just charge 11% (no GST), which would be $92.3901, but that's $5 less than what they are charging ($97.59). Maybe their's a weird currency conversion their system does for some reason, which would explain why it's not exactly 11%? I don't know.
***(The Property Use Tax is the 5% GST tax I created and added on)
Anyway, this page I thought explained it pretty clearly. (https://www.airbnb.ca/help/article/2283)
"Tax collection and remittance by Airbnb in Canada
Country of Canada
Guests who book Airbnb listings that are located in the country of Canada will pay the following taxes as part of their reservation:
- Goods and Services Tax (GST), Harmonized Sales Tax (HST), and/or Quebec Sales Tax (QST): 5–15% of the listing price including any cleaning fees for stays 30 nights or fewer. If you only host stays for longer than one month, taxes will not be charged on the accommodation. Guest fees are also subject to the 5–15% GST, HST, and/or QST. For detailed information, please visit the Government of Canada website.
- Airbnb is registered with the Canada Revenue Agency under business number 72368 9006 RT9999. Guests who need a tax registration number for the purposes of claiming a credit for their reservations (such as the Ontario Staycation Tax Credit) may use this number.
Hosts with Airbnb listings who aren’t registered won’t have any obligation to collect and remit the GST, HST, and/or QST on their accommodation themselves. The National law will require Airbnb to collect and remit these taxes on their behalf.
Hosts with Airbnb listings who are registered for GST, HST, and/or QST should continue to account for the GST, HST, and/or QST on their accommodation. If this applies to you, you’ll need to provide your GST, HST, and/or QST ID to Airbnb so that Airbnb won’t collect and remit these taxes on top of your accommodation price. If you self-collect GST, HST, and/or QST, please provide this information to avoid changes to your pricing."
Therefore, I think I’m doing this correctly (Air BNB isn't remitting GST for me and I am right in adding an extra 5% and remitting GST for myself). But I'd love your thoughts here.
This article (https://www.airbnb.ca/help/article/2283) says tax is applied to "the listing price including any cleaning fees for stays 30 nights or fewer. If you only host stays for longer than one month, taxes will not be charged on the accommodation. Guest fees are also subject to the 5–15%"
In the example below, I believe $839.91 is what the tax would be applied to.
If Air BNB is remitting my GST for me, that means that they are charging 8% for PST, 3% for MRDT, and 5% for GST. That's 16%.
For the above example, 16% of $839.91 is $134.3856, and the taxes they are charging (Occupancy taxes) equals $97.59. So they are about $37ish short... I assume they are just charge 11% (no GST), which would be $92.3901, but that's $5 less than what they are charging ($97.59). Maybe their's a weird currency conversion their system does for some reason, which would explain why it's not exactly 11%? I don't know.
***(The Property Use Tax is the 5% GST tax I created and added on)
Anyway, this page I thought explained it pretty clearly. (https://www.airbnb.ca/help/article/2283)
"Tax collection and remittance by Airbnb in Canada
Country of Canada
Guests who book Airbnb listings that are located in the country of Canada will pay the following taxes as part of their reservation:
- Goods and Services Tax (GST), Harmonized Sales Tax (HST), and/or Quebec Sales Tax (QST): 5–15% of the listing price including any cleaning fees for stays 30 nights or fewer. If you only host stays for longer than one month, taxes will not be charged on the accommodation. Guest fees are also subject to the 5–15% GST, HST, and/or QST. For detailed information, please visit the Government of Canada website.
- Airbnb is registered with the Canada Revenue Agency under business number 72368 9006 RT9999. Guests who need a tax registration number for the purposes of claiming a credit for their reservations (such as the Ontario Staycation Tax Credit) may use this number.
Hosts with Airbnb listings who aren’t registered won’t have any obligation to collect and remit the GST, HST, and/or QST on their accommodation themselves. The National law will require Airbnb to collect and remit these taxes on their behalf.
Hosts with Airbnb listings who are registered for GST, HST, and/or QST should continue to account for the GST, HST, and/or QST on their accommodation. If this applies to you, you’ll need to provide your GST, HST, and/or QST ID to Airbnb so that Airbnb won’t collect and remit these taxes on top of your accommodation price. If you self-collect GST, HST, and/or QST, please provide this information to avoid changes to your pricing."
Therefore, I think I’m doing this correctly (Air BNB isn't remitting GST for me and I am right in adding an extra 5% and remitting GST for myself). But I'd love your thoughts here.
