Taxes system Airbnb with co hosts

[Ahmad303]

Me and a friend own a property together and we rent it on Airbnb. He has his taxes TPS/TVQ numbers so I put 100% Airbnb payout to him and he gives me 50% of the remaining profits at the end of the year.

On other platforms, they give the total revenue +TPS/TVQ, and we take care of the rest.

On Airbnb I see the total but they did not add the TPS/TVQ, when I asked each time they gave me a different answer:

-"You need to update your CITQ"

-"You can't collect taxes, only Airbnb can"

-"You can collect your taxes from the resolution center from the guest"

I need to  manually collect and remit occupancy taxes.

Can anyone help?

Thank you!

[Paula]

Hello @Ahmad303, welcome to the Airbnb Community Center 😊

I’m reaching out to one of our most experienced Co-Hosts, @Joan2709, to see if she can share some insights, even though she is not based in Canada.

Another option is to join the closest Local Host Club to your location to get advice from local Hosts.

I hope this helps!

[Joan2709]

Hi @Ahmad303 

Just to clarify, are you looking at earnings summary on Airbnb and don't see the taxes? If so, I believe you have to download the CSV file to see the tax amounts. I'm not familiar with the abbreviations you are using for taxes (TPS/TVQ) but I'm assuming they are equivalent to our Sales Tax & Lodging/Occupancy taxes? Perhaps another Host in Canada (Quebec) can address that?

As Host, you need to determine what taxes you are required to collect and either Airbnb collects for you on each reservation and remits to the taxing authorities, or sometimes Hosts need to add Custom Taxes to their listing if Airbnb doesn't collect a required tax. Then Host then is responsible for remitting the taxes directly to the tax authority; not Airbnb.

I do see that when someone tries to book your place, Taxes are being collected on the reservation detail by Airbnb. You have to determine what percentages and what type of taxes are required to know if Airbnb is collecting all the taxes required:

This is the Airbnb Help Article on Taxes in Canada:

https://www.airbnb.com/help/article/2283

To determine what taxing authorities Airbnb is collecting for, go to Listing Editor/Preferences (3 lines at the top), then Taxes. 

This is also the area where you would add custom taxes if Airbnb isn't collecting the tax. I believe you have to have Pro Tools turned on in your account in order to add a Custom Tax (at least that used to be true; they could have changed that).

[Ahmad303]

TPS (Federal Sales Tax) and TVQ (Provincial Sales Tax) are our federal and provincial taxes, respectively. Additionally, there is TSH for the lodging tax.

Currently, Airbnb pays us without including these taxes; they retain the taxes themselves.

On another platform, I collect the taxes, handle my own declarations, and transfer them to local authorities.

For example, if I earn $100 in revenue on another lodging platform, they pay me $100 plus taxes, totaling $115.

At present, Airbnb collects the taxes, which complicates our tax declarations, and I prefer not to handle this process with them.

[Joan2709]

@Ahmad303 

I believe you can change your options to instruct Airbnb NOT to collect taxes for you and you would then have to collect them from guests and pay to the respective taxing authorities: