About income GST

[Changhuan0]

Hi, I am the owner. My house are in Vancouver.  I have a important question. Does the income that I am getting including GST (Tax) ? Do I need to claim tax again? Or Airbnb already taking away? 

[Corliss2]

As an AIRBnB host, you are running a small business. If your gross business income from this venture exceeds $35K, you need to apply for GST registration. If your gross is below the threshold, you do not need to worry about collecting nor remitting GST.

[Dave264]

hi there - a clarification to this and also a question for anyone that may know!  1. Your theshold line is $30000 for small supplier, not $35000 (keep in mind this also includes your cleaning fees).

2. So I am just trying to tightrope under the $30000 line all the way along, but concerned about the wording.  I started in May, so have been using quarters from there (May June July is Q1, Aug Sept Oct is Q2 etc) - and rolling forward, but I 'assume' as taxes go, I could see a scenario where a January to January for taxes could actually show over $30000 while I am still under on the rolling Q's I started with.  Are they actually saying 'any combination of 12 months' and I need to roll a new calculation every month to make sure I stay under?

Would be so much easier if the wording just said any Jan-Dec period of course!  Of course would even be easier if Airbnb included a line for GST so we didn't feel the need to pay the GST ourselves as opposed to pestering guests for more money and risking bad reviews!

[Jennifer1421]

@Dave264 

I think, because this is a small business, that the income is claimed from Jan 1 to Dec 31 each year, as it will be claimed as personal income - so would follow your personal tax year. Unless you've incorporated...in which case it would be claimed for whatever fiscal year your corporation has set up.

The 30k threshold regarding GST/HST is strictly for business income, so no need to collect it if (for example) your gross earnings from ABB were $29,500 in 2018 and you also earned employment income, dividend income, or capital gains in excess of that.

Check with an accountant, obvs, but that's how I do it (as an unincorporated biz) and my accountant hasn't kicked.

Cheers,

Jen

[Dave264]

thx for insight - makes sense - I am tightroped at 29992 right now so can't book anything more until Aug 1...lol  I'll keep my rolling going on my dates as the wording on CRA site certainly implies that vs Jan-Dec, but I will just make sure my Jan-Dec is also under the 30k - should be in the clear with that.