Airbnb's reseller permit - copy needed

[DavidAndBecky0]

How do I obtain a copy of Airbnb's Washington State Reseller's Permit?  

Info from the Washington Department of Revenue: 

"Every business that sells at wholesale must have a valid reseller permit or other documentation for each customer that buys without paying retail sales tax....

Sellers must maintain proper documentation to support wholesale sales for five years after the date of sale. Sellers have up to 120 days from the date of the sale to collect the documentation. Documentation options include:

• A paper or electronic copy of the reseller permit.
• A print out of the customer's information on our Business Records Database.
• The confirmation codes received through the Reseller Permit Verification Service.

In the event of an audit, you will be asked to provide documentation to support your wholesale sales."

If my business is selling wholesale to Airbnb, then I will need a copy of Airbnb's reseller's permit.  How can I obtain a copy?

[Jeff158]

Hi @DavidAndBecky0

You are not selling anything to airbnb, they are a booking platform and charge you a commission to use it. You are doing retail sales.

[DavidAndBecky0]

It seems as if they are the reseller, who sells to the customer (guest) and collects the payment from the guest, then they (airbnb) sends me a payment for something less than they collected.   If I were the seller, then I would be collecting the payment from the guest, no?  

How is this any different from me selling my cookbooks through a local store, who sells them to their customers? The store collects payment from their customer and sends me a payment for something less (wholesale). If I don't have the reseller's permit in this case both me and the store must collect and remit sales taxes to the state.  Help me understand how my sale to Air is any different? 

BTW, they don't charge a "commission" like Booking-dot-com, they send me a payment for the room they purchased. 

[Jeff158]

Hi @DavidAndBecky0

If only life was simple,

When you sell cookbooks to the shop you invoice them, when you sell through airbnb you don't send airbnb a sales invoice, In theory you should send the guest a sales invoice as airbnb will not issue an invoice to the guest for other than the fee they also pay on booking.

Every booking is an individual contract between the guest and the host, airbnb just facilitates the two coming together. They send you payment for a room the guest purchased from your listing on the airbnb website, they charge you a commission of 3%-5% for using the website and its deducted from the guest payment before the guest payment is sent to you.

B.com works the same way if you choose for B.com to process payments.

what-are-airbnb-service-fees

The T & Cs are very long

https://www.airbnb.co.uk/terms?hide_nav=true#sec6

https://www.airbnb.co.uk/terms/payments_terms#sec18

[DavidAndBecky0]

@Jeff0 Thanks for your replies. I see you are in the UK. Laws regarding state sales taxes are quite different in the USA. In fact sales tax laws are unique and different between each of the 50 states.  My state sales taxing authority requies me to prove I have a copy of the resellers permit from the third party. The only alternative is to double-collect the sales taxes.  I wish to avoid double taxation, so therefore I require a copy of the reseller's permit.   

Actually sales are pretty simple...   The person who collects the payment, makes the sale: I collect a payment from Air - I made that sale. Air collects the payment from the traveler, Air made that sale.  The same item sold twice.  Sales tax is due for both sales UNLESS the party reselling has a reseller's permit and provides it to the party making the first (wholsale) sale.  

Air can call it anything they wish, but that doesn't change the nature of the transaction.  OTOH, Booking sends me an INVOICE for the commission and I pay them.  They don't buy anything from me or pay anything to me, they provide a service and bill me for it. 

[David126]

I am in the US and am familar with both US and UK rules.

AirBnB is a facilitor does not sell anything. Charges a fee for its involvement a bit like a Credit Card Company charges you a fee on every transaction.

I have used Wholesalers in the US so am familar how it works in CO, and yes every State is different. AirBnB is not a wholesaler in Colorado and I doubt in Washington.

[DavidAndBecky0]

@David126, Thanks for your reply.  I'm simply asking for a copy of a permit that should be available to me, since my state requires it. (See quotation of the state's requirements in the OP.)  If you have some documents or material that demonstrates that it is not necessary in the state of Washington, I'd love to see it.  

Maybe I didn't make it clear for those reading the OP, but the state of Washington already has a formal agreement in place with Airbnb. Under this agreement, Airbnb collects sales and lodging taxes as applicable for each locality in Washington. Air is paying the sales taxes to the sate of Washington on the sales that Air makes here.  My concern is that like any other product I resell, this alone does not seem to releive me of any obligation to collect and also pay sales taxes on the sales I make to Airbnb, UNLESS i have a copy of their resellers permit.  Prior to this agreement, I collected sales taxes from the customer directly and paid them to the state as part of my monthly tax settlement.  All I want is a copy of something that I can show to the department of revenue, that demonstrates I no longer have to separately collect and remit the sales taxes. 

[Jeff158]

Hi @DavidAndBecky0

This post discusses the same issue

Sales-and-Occupancy-Taxes-in-Washington

[DavidAndBecky0]

@Jeff158

Thanks yes, it's a similar issue, which has been resolved, though it is not exactly the same.  

One issue is how to document and what records to keep.  The other issue is how to report that taxes were collected and paid by Air. The link you mentioned is about how to report the taxes, and how to apply the exemption so that B&O tax is still paid, but the exemption applies to sales & lodging taxes, which I'm already doing.  

The discussion in the other thread has nothing to say about what proof or records might be needed to support the claim that the taxes were paid.  The quote in the OP shows requirements for record keeping, in case of an audit.  I just want to be sure I have the right records.  

[David126]

That is a different issue and I do not know the answer, logically ABB should give you an annual statement showing all the taxes they have remitted on your behalf, does not seem to work that way.

[Jeff158]

Hi @DavidAndBecky0

Back again, in the UK we have vat as a sales tax and every booking has a sales tax invoice printable in "your reservations" I don't suppose you have the same.

[DavidAndBecky0]

@Jeff158, Yes, there is a way to get a copy of what sales and lodging taxes were collected by Air from the Dashboard.  That's not the issue.  As I noted previously this is about what records are required by the state in case of an audit.  Those requirements state that for anybody else to collect or make tax payments on your behalf, you must have a copy of their Reseller's Permit.  It's not good enough to simply show that they collected and paid, a record is needed to show that they are "qualified" if that makes sense.  Otherwise it would seem I am still obligated to collect and pay again.  I'm just tying to comply with this record-keeping requirement. 

[David126]

AirBnB have agreements with individual States, perhaps call the State and find out what it is and if there is anything you need to do.

[DavidAndBecky0]

@David126. Yes, the state of Washington does have an agreement with Air. I suppose that the resellers permit or something equivelant was part of that agreement.  Yet, Air refuses to provide me with a copy.  The state's website said I should have a copy of it as part of my permanent records.  They've left me hanging out here, with what seems like a potential tax liability.  Not a good way to run a business. 

[David126]

@DavidAndBecky0

Ask the State for a copy.