Taxes Charged by Hosts in BC

[Derek383]

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

[Rebecca]

Hello @Derek383 👋

I'd like to tag some hosts from Canada here that may be able to add to the conversation: @Hitomi3, @Mike3317, @Zheng49, @Ouadie2 and @Fatima645, I'm hoping you don't mind my tag and ask for help here. 

Looking forward to hearing from you,
Rebecca 😊

[Fatima645]

Hm, I did not add my own GST to my listing because when I read the article, I understood that AirBnb does it for hosts. 

[Derek383]

Thanks for commenting @Fatima645 . 

When you read the below Air BNB page don't you think that if you 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?
https://www.airbnb.ca/help/article/2283 

[Fatima645]

Hm, it looks like they have given both options. I am registered but I think I had given permission to Aribnb to collect GST on my behalf. I am still going to mention it when I file taxes. If it gets claimed twice, the CRA adjusts it anyway.