Tourism Levy Tax Alberta

[Jenna400]

Hello fellow hosts! 

We listed our condo in Dead Man’s Flats, AB last fall. We unfortunately didn’t know about the Tourism Levy Tax. It was previously managed by a property management company. We want to start paying this obviously, but wonder how we collect the tax? Do you just charge 4% more on your nightly rate to account for this tax? It seems strange to me that Airbnb doesn’t collect it for us since they collect gst. 

Any local hosts who have info on this would be helpful! 

[Paula]

Hello @Jenna400 and welcome to our Community,

I'm reaching out to one of our wonderful hosts from Edmonton, Canada,@Dave-and-Deb0  to see if he has some local insights to share with you.

I hope this helps. 

[Dave-and-Deb0 · Accepted solution]

Hi @Jenna400

You can certainly build the Tourism Levy into your nightly rate if you want to do it that way.  I choose to add it as a tax and then Airbnb charges it and sends it to me as a separate payout line.  You would need to turn on Pro Hosting Tools (https://www.airbnb.ca/account-settings/professional-hosting) and then you will have the option to add the Tourism tax in your pricing section under taxes.  Make sure you set it up so it does not collect for reservations 28 nights or more.  

[Dave-and-Deb0]

Hi again @Jenna400 

Here is a screenshot of how I have mine set up.

[David-O1]

Hi @Dave-and-Deb0 How do we get the accommodation tax reg number. 

[Dave-and-Deb0]

Hi @David-O1 

You will need to register for one here: https://www.alberta.ca/tourism-levy.aspx#register

[Patricia4059]

Hi there @Dave-and-Deb0 

I am about to add the tourism levy tax to my listing and I have a question about your screenshot. Under taxable base, I am not sure which ones to choose. I notice you choose a number of them. I accept pets, so would that be another box to tick off? Thanks in advance. 

[Dave-and-Deb0]

Hi @Patricia4059 

Yes, I chose those even though I do not have any of them so it would not even apply.  I did not choose Pet Fee as we do not allow pets but if you do, you should choose it.  It is basically letting Airbnb which services should be charged the 4%.

Here is what one of the Alberta Tourism Levy articles state.

"The tourism levy applies to all fees that are included in the purchase price of the accommodation, as stated on the invoice. This includes direct marketing fees, pet charges, fees for microwave ovens or refrigerators, and fees for smoking in a non-smoking room."

I hope this helps

David

[Samantha930]

Hi there, 

I was just checking how I have mine set up vs yours, and I noticed that you selected over 28 days to be non-taxable. I just wanted to clarify one difference.

Where Alberta provides an exemption for 28 days or more, should that setting not state not to charge tax over 27 days? As in, no tax added for a 28-day stay. 

Thanks!

[Rocio511]

I recently receive a letter from Alberta Treasury board and Finance , where states that they identified me as owning a property on Airbnb. Basically the letter claims to pay the levy tax (4%) for all nights sold since 2021.

I though this was under the ocupacy tax charge on all my bookings.
I am shocked that I have to pay levy tax 4% for all money I received since 2021... How did you deal with late tax?
I just registered for the tourism levy and have to wait to get my BIN (business identification number). I spoke with someone from this bureau and told me starting october 2024. AirBNb should remit levy tax directly..

Any help is welcome

[Dave-and-Deb0]

Yes, the Alberta Tourism levy has been going for quite some time and you should have been paying this.  You need to remit it quarterly.  Many hosts were not charging this or paying it which put them at an advantage over those hosts who have been charging it.  I am glad the government is going after those who have not paid it and who have listings.  They are correct that Airbnb will be collecting this for new reservations from October 1 (booked after) so you may want to add it as a tax now for those bookings that come in before this date. 

Please reach out if you need more info.