Why isn't Airbnb collecting sales tax?

[Tyler-And-Lisa0]

Yikes!  We just started hosting in May of this year and it was communicated when setting up our listing that Airbnb collects and remits all taxes on our behalf however, I just looked at the year today earnings statement and it shows zero tax withheld.   Ughhhh.  

Our property is in Eagle County Colorado. 

Advice or recommendations on how I can get this corrected for them to collect and remit the taxes for us?

[Joan2709 · Accepted solution]

Taxes depend on your actual legal address? Airbnb doesn't always collect taxes for every jurisdiction. If there is a tax required that Airbnb does not collect, Hosts must add a custom tax to their listing in order for it to be added to every reservation. The Host is then responsible for remitting the custom tax to the appropriate governmental agency; not Airbnb. You would have to contact Airbnb regarding your situation. Unfortunately, if a tax is required, but not collected on your previous bookings, you will still owe the tax. You should have seen "Occupancy Taxes" listed on every reservation. Airbnb groups all taxes (sales tax/lodging tax) under the heading "Occupancy Taxes" in a reservation. Most Hosts keep a spreadsheet and breakdown the sales tax and lodging tax in case it is needed at tax time.

Airbnb Occupancy Tax Collection Remittance - State of Colorado

https://www.airbnb.com/help/article/2298

To determine what taxes Airbnb collects for your listing go to:

Listing

Scroll to the bottom

Select Taxes

If you are in unincorporated Eagle County (not in the town of Gypsum), then looks like Eagle County’s 2% lodging tax would apply to every booking (in addition to sales taxes that apply – State/local). 

How to Add Taxes to a Listing

https://www.airbnb.com/help/article/2523

[Tyler-And-Lisa0]

@Joan2709 , thank you so very much for the response which is extremely helpful! 

I will be looking into this today and getting it straightened out for 2024.  

Gypsum was excluded from the 2% lodging tax but that changed in a recent vote is now not excluded.

Thank you!!

[Zach583]

Thanks, Joan! This helped me, too.
Follow-up question.  Since Airbnb is collecting the taxes, do I still need to submit monthly sales figures via Colorado Department of Revenue?  (Or is Airbnb doing this on my behalf)

[Joan2709]

Hi @Zach583 

H,mmm...not familiar with Colorado (I'm in a different state). We have to pay a Business & Occupation tax on our own. Depending on predicted revenue, it must be paid monthly/quarterly or annually. We don't have to report the sales tax or occupancy tax separately at the moment. However some states do require you to report it, even if Airbnb is paying it in your behalf.

Probably best to contact Colorado Dept of Revenue and your local city/county taxing authority and ask them directly. 

[Cathy993]

I just got a bill from Wisconsin for sales taxes, on my listing taxes are collected by Airbnb. When I go to the menu and look at income it used to show everything, now I just see fees and income. There is not a column for taxes, so even if I wanted to pay the sales tax I would have to go in and look at each booking for the details. I don't have a 1099 so not sure how to show the taxes were collected and paid by Airbnb. How can I get this resolved?  

[Rebecca]

Hi @Cathy993 👋

Thanks for asking your question. I wondered if you have contacted Airbnb Support? 😊

[Cathy993]

Yes, it appears that the tax that they are collecting is not sales tax

[Joan2709]

Hi @Cathy993 

Go to your Earnings tab and you'll find you can download a CSV file. That will contain what taxes have been collected. You will have to change the format to Excel and edit some of the columns, but the info is there. Many Hosts keep their own spread sheet for each reservation so as to avoid this. Be advised that Airbnb does collect both sales tax and occupancy tax in many jurisdictions but not all. They also lump all the taxes under the heading "Occupancy Tax" when it really is Occupancy Tax AND sales tax. Confusing right?

It's best to find out from your state and local taxing authorities the amount/percent of sales tax and occupancy taxes that are required. Then for each reservation, break down the Airbnb lump sum "Occupancy Taxes" and keep that in your spread sheet for year end taxes for yourself or your accountant.