NC Sales Tax

Joel---Ann-Marie0
Level 1
Hendersonville, NC

NC Sales Tax

I should know this answer, but it escapes me now.  Airbnb does submit North Carolina Occupancy tax on our behalf.  Does it also collect/submit sales tax?

21 Replies 21
Cynthia-and-Chris1
Level 10
Vancouver, WA

I went to your listing and pretended to book and it looks like Airbnb does automatically collect the following taxes:

 

General Sales and Use Tax (North Carolina)

General Sales and Use Tax (Henderson)

Accommodations Tax (Henderson)

 

Hope this helps!

I found this very confusing as well. It looks like the only tax they are collecting is the accomodations tax for the county. I am glad to know what it looks like on the guest side. If you go to your Transactions it shows your past and future bookings with the taxes separated out on the right hand side. However, when I did the math on what percent they collected it came out to 11.1% instead of 9.75%. I have emailed with someone at AirBnB who says they are definitly collecting "accomodations tax". Do you think they are confused with all of the different taxes that are collected in NC on our behalf? I was also told by NCDOR that we still need to provide documentation of what was collected and remitted on our behalf. AirBnB said to submit your Transaction report to NCDOR. AirBnB apparently sends in a lump sum for ALL hosts in NC and does not itemize. I think they are collecting ALL of the sales tax and accomodation tax for the state and the county. If any of you know anymore details on this I sure would appreciate it! Trying to figure it out before the Oct. 20th filing deadline. 

Thanks for the tip on checking the math on the guest side! For me, it's 10%: 4.75 state sales and use + 2.25% local sales and use + 3% local occupancy. When I calculated 10% of the guest's "room fee + cleaning fee + service fee," it came out to the exact figure that Airbnb said they remitted on my Transactions screen!

It is a percentage on top of all fees.

Scott153
Level 2
Charlotte, NC

I need to figure out the same thing. The Airbnb website only mentions Occupancy tax as something they collect and remit for NC, but I would assume there would still be some sort of documentation to prove this if it were true. Shouldn't we get a 1099 form or something to put with our annual tax filing to show that Airbnb did this on our behalf?

Silvia438
Level 1
Miami, FL

I have a cabin near Bakersville, NC.  i pay sales tax thru a company called MyLodgeTax support.  i used to use VRBO and i had a option to add my taxes while booking.  i cant do that here.  Airbnb says they collect taxes on my behalf. but i dont undestand how and the way they process it.  they do not reduce the tax amount from the money collected. I cant find a way to contact them either to explain. 😞

any suggestions?  ideally, i would like to collect the taxes with the rate and submit it right away.

 

thank you.

Tori2
Level 3
Asheville, NC

The truth about this is simple: Airbnb is ONLY collecting the occupany taxes in NC.

 

YOU are responsible for paying the SALES and USE tax MONTHLY - which is 7% in Buncombe for example.  4.5 for the state and 2.5 for Asheville. You can try to skirt around it if you only rent less than 14 days a year, BUT if they catch you, then you can be fined.

 

Remember: ignorace of the law is not grounds for breaking it.

 

Best Wishes,

 

Tori

We have a cabin in Caldwell County NC. How do you get set up with North Carolina to pay the sales tax?  

Sherry.  We have a cabin in Caldwell County, NC too.  Did you ever get an answer to this question?  Did you have to register with the state or county lodging taxes given that Airbnb is collecting those taxes?

Tori, I ama  new host and I had the same questions about taxes. Thanks for that info. I wish I could get more info on what's legally required of me as a host than anectodal info from other hosts. My bookkeeper (for my business, not for airbnb) doesn't know either. 

 

You sound like you're more the know that anyone I've spoken to yet. Can you share what you've learned? 

You said we have to pay the sales tax. Do you pass that expense along to your guests as a line item add-on, or do you just deduct a portion of your earnings? 

Did you have to register with the state as a business entity? 

 

Any other tax-related requirements you can share? 

 

I assume I declare my airbnb income along with other income I earn, and all accumulated income will be taxed based on the resulting tax bracket. Correct? Much appreciated... 

Michelle1358
Level 4
North Carolina, United States

Were you able to learn anything?  Wondering the same things myself and am in the same area as you --

I'd like to get some clear answers about this as well.  According to my bookkeeper, they are taking out too much for my place in Henderson County for Occupancy tax, and have actively refused to provide ANY documentation about what taxes are paid where (I have proof).  Tells us to coordinate with the local tax office.  The local tax office say they get a lump sum, and no itemization.  But yet, the booking says they are collecting occupancy AND S&U tax?  Where's the documentation?  From what I understand, they have to provide some sort of return by law.  PLUS, the End-of-Year statement was a joke.

  And to add to it, the local tax office is saying that they, along with the state arre supposed to enact a requirement for further documentation of income.  A stupid spreasheet (.csv) will not suffice, as it is to easily modified. I've been taking screenshots of my earnings page, showing the website, and URL to document it. 
  My question:  How is AirBnB not being sued over this?
  If it weren't for the fact that my place has stayed actively booked through AirBnB, I'd ditch 'em.  I'm not sure the liability is worth it.