HST and PST tax collection in Canada

Mary-And-Dan1
Level 2
Victoria, Canada

HST and PST tax collection in Canada

Hi

I just got a notice that Air BNB is going to collect HST and PST from our guests, and that there's nothing to worry about because we don't have to do anything. Which is fine-but it's my understanding that there's no need to collect GST and PST if you earn less than $30,000 per year. We only rent a few months a year, so we've never reached that. Doesn't seem fair to guests. Or legal, for that matter.

Mary

5 Replies 5
Annie1372
Level 10
Montreal, Canada

@Mary-And-Dan1 

 

 But AirBNB earn way more than 30 000$/year in Canada. The taxe in unfortunately on the entire price, but we also agree to do business with a big company.

 

if you rent your place on your own, then you do not have to charge taxes.


I think it is fair as all the other AirBNB Canadian host will have the same new taxe % added to their current price.

 

 

.
Annie
Pike14
Level 1
Hamilton, Canada

A law was passed by the Canadian feds a few years that requires many online platforms, including Air BnB, to start paying HST/GST starting July 1, 2022 for all transactions. The small supplier threshold does not apply here. So in fact it is very legal - recently made legal! Not AirBnB's choice to do this, but mandated by Canadian laws.  And it does level the playing field since now all listings will include the tax. And now the government will be happy with the additional revenue I'm sure...but many guests won't. Pike

Hi Pike14,

 

We are making under $30,000 per year ( probably $15,000). Do my guests still need to pay HST/GST?

Timothy465
Level 1
Stratford, Canada

I plan to earn under $30,000 per year. I have spoken to Booking.com and they have removed the tax. AirBNB earns a fee on my listing, they are welcome to charge the tax on that but should not charge on my room or cleaning rate.

 

 

Nikkita3
Level 2
North Vancouver, Canada

That's exactly my question. It looks as if we let Airbnb take care of the HST collecting. Our guests will be charged for tax money they don't need to pay.