AIRBNB Charges - Do they include GST?

Anthony31
Level 2
Berry, Australia

AIRBNB Charges - Do they include GST?

 

Does anyone know if AIRBNB charges GST in their Airbnb service fees in Australia?

5 Replies 5
Em4
Level 10
Franz Josef Glacier, New Zealand

@Anthony31  the way i see it BNB take their commission from the gst inclusive price ie the price you charge, the only business i am aware of that gets away with this.  gst is paid by you. 

 

🙂

Em

Hukawai Lodge

Franz Josef, NZ

https://www.airbnb.co.nz/rooms/15418840

Jayesh0
Level 10
Urangan, Australia

@Anthony31

 

Interesting that you asked this question as legislation changes on July 1.  Here is an email from booking. com received 2 weeks ago.  They are starting to charge 10% on the next invoices if you are not registered for GST.  Have not heard anything about Airbnb charging the extra 10% yet nor have they asked for proof of our GST registration.  You will need to check billing after 1 July.  Not sure how those of us who are exempt will notify them.  If you hear anything please let us know!

 

Lisa 

 

 

Dear Partner,

 

As of July 2017, Australia will implement new Goods and Services Tax (GST) rules relating to digital products and services supplied by foreign companies to Australian consumers without a valid Australian Business Number (ABN), and/or not registered for GST purposes in Australia.

As a consequence of these rules, service recipients without a valid ABN and/or not registered for GST purposes must be charged 10% Australian GST by foreign companies, in line with local suppliers.

 

Due to this new legislation, we need you to provide your ABN and let us know whether or not you are GST registered in Australia, so that we can invoice your business correctly.

 

Please log in to your booking. com extranet, fill in your ABN (if applicable) and tick ‘Yes’ or ‘No’ to the question “Is your accommodation registered for GST purposes in Australia?” before Friday 16 June 2017.

 

If you have any further questions about GST, please contact your tax advisor or accountant.

 

Thank you, The booking. com team

Jayesh0
Level 10
Urangan, Australia

@Anthony31

 

I was reading this article which likened the new legislation to VAT.  

 

http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/Budge...

 

Went to look up how VAT was handled and found this:

 

https://www.airbnb.com.au/help/article/436/what-is-vat-and-how-does-it-apply-to-me#

 

It looks like GST is already being charged to hosts and guests on the service fee.

 

Australia and NZ are the only ones with GST so it stands to reason that these referrals are exclusively for AU & NZ.

 

"In Australia and New Zealand, Goods and Services Tax, or GST, is applicable instead of VAT."

 

"In Australia and New Zealand, GST applies to the hosts and the guests."

Guests

VAT, JCT or GST is charged at the time of payment and is based on the total guest service fee for a reservation. 

Hosts

VAT or GST is deducted from your payout and is based on the total host service fee for a reservation.

 

I am quite impressed that they were paying GST before they were legally required to do so!  Well, the guests and hosts have been paying it...  so maybe a touch less impressive!  Be nice if it was itemized in the booking accounting.  Anyway, they are already compliant with the legislation that changes tomorrow and that is a good thing all around really.   

 

Lisa

 

 

 

 

Pete-and-Margaret0
Level 2
Christchurch, New Zealand

Hi,

 

We are new to holiday rentals and our property based in New Zealand is owned by our trust and that is not GST registered. Therefore we are technically not allowed to offer services with GST added so it is suprising that BNB is able to add GST anyway to prices. Or does it? I'm confused by the definitions I've read as they are not clear - there is no place to indicate if a host is or is not GST registered.

 

Assumign that BNB do charge GST then I expect this is on top of the price we set as hosts, and therefore we are paid the GST-exclusive amount when paid out, but is the comission calculated on the GST inclusive or exclusive rate? If the former then the hosts are paying a higher comission if they are not GST registered.

 

BNB I would welcome a clear direction from you on the matter please?

 

Regards, Pete

Okay so it seems that since 1st July 2018 Airbnb are now charging customers 11% GST. It's a bit odd because in Australia if I operate a business and my turnover is less than 75k pa I am GST exempt and my turnover from this rental is less than 75k so why are my customers being charged?