Taxes in BC, Canada (.... again)

[Francois1008]

While searching for my GST numbers, I discovered an anomaly.

     PST      8% on list price                           $300 x 8%                                                                         $24.00                                    

     GST     5% on list price plus fees         ($300 + $9 AirBnB fee) x 5%                                     $15.45

     MRDT 3% on list price plus fees         ($300 + $9 AirBnB fee, no cleaning fee) x 3%     $9.27

     Total  16%                                                                                                                                                   $48.72   (16.24%)

0.24% x $10 million/day = $24,000.00

What am I missing?

I've asked AirBnB for a simple accounting of taxes paid. "Not available".

[Mike-And-Jane0]

@Francois1008 I can see nothing wrong with the calculations you have shown. It is mathematically incorrect if you have added up the 8%,5%, and 3% when they apply to different figures (ie some apply to base price plus fees).

[Francois1008 · Accepted solution]

Thank you Mike and Jane. I believe I've resolved the concern. 

What am I missing? My approach is backwards. It makes sense and adds up from the perspective of the guest. I have set the base price at $300 per night. AirBnB advertises the unit for $395.00 per night. The only other fee is AirBnB’s take of 14%, on which the tax is 7% PST and 5% GST, no MRDT.

Tax on base price (8% PST, 5% GST, 3% MRDT) = 16% x $300.00     $48.00

AirBnB fee = 14% x $300.00                                                                             $42.00

Tax on AirBnB fee (7% PST, 5% GST) = 12% x $42.00                                $5.04

                                                                                                                                     $95.00 (Gov’t eats 4¢)

[Francois1008]

Take 3.

In BC, not sure about other jurisdictions, AirBnB is entirely responsible for calculation, collection, and remittance of taxes. They are not required to and will not share that information. Any anomaly is entirely their problem. A Ministry of Finance official has assured me that Government will not pursue the individual owner. 

The calculated amount remains entirely opaque.

Don't worry. Be happy.

FT