Collect sales tax

[David-And-Cindi0]

I have a note in my file under extra details that I will collect the sales tax from a guest. A question came up about it from the guest, and as I am reading online, Airbnb states that I need to tell them before booking. I did not do that. I thought it only needed listed in my listing details. If that is not adequate, I won't charge him a tax. However if it is adequate, I would like to collect the tax.

[David126]

I have seen other people list it and collect it on arrival, I personally if I was a guest would expect to see it included in what I pay ABB.

[David-And-Cindi0]

Why is that, David? They don't do it that way at any of the hotels I have stayed at. (While I would prefer it that way too!)

[David126]

Evetywhere I have stayed I have paid it in one transaction, when booking.

[David-And-Cindi0]

Yes, in one transaction. But not included in the price. Added on. Air has now changed that for some cities and is collecting for them. But not here. But thank you for your input.

[David126]

Personally I look at the total price.

[City-Limits-Ranch0]

AirBnb wants the tax collected separately unless they collect it automatically.  In your listing you should mention the local tax prominently in the description of the listing.  Repeat this in your first message to the guest, and include a mention in several places in the listing, including the HOUSE RULES.  Since the guest 'agrees' to your house rules then when they book they are agreeing to pay the tax to you on arrival.  For this one time, unless it is disclosed as noted above, don't charge it, but in future do as suggested.  One host recently mentioned they use Square (credit card reader?) to collect the tax before the guest arrives (by phone?) 

[David-And-Cindi0]

I like that answer and it makes sense to me. It's fair. I won't charge. It IS in the listing info, but I will make it more prominent. Thank you!

Square Cash is related to Square Card. It is a method of sending money anywhere using a debit card or Paypal - and I think Visa. No fees when a debit card is used. There is a 2.7% fee if not debit. It's handy dandy! And you don't even need an account. Check out https://cash.me

[Allison2]

I offer to collect in cash when they arrive or to add it into the Airbnb total - stated in both listing & rules. The problem with adding it to the total is that Airbnb charges their fee on the tax, too, which isn't right. It also makes it difficult to show your city/state that you've accurately remitted the appropriate amount, since they just see gross sales.

Why they can't add a separate line item for tax (even if I'm still responsible for submitting it to the state) is completely baffling. It seems a $20Bn company should be able to figure that out.

[Orita0]

I totally agree with Allisson; there should be a separate line for taxes just like they have in Homeaway and VRBO.

Because of taxes collecting I have lost potencial reservations and it has made my life more difficult. I do like to do things by the book,

therefore I have a license and remit taxes every months, but Airbnb does not make this task any easier for us!!

Orita

[Shawna10]

Collecting at checkin as a separate charge is a very silly idea (said in a nice way, the real way to state it is that its a completely stupid idea). This should be handled in a single transaction. No client is going to want to deal with paying a tax separately from the rent. I have rented dozens of houses and never had to deal with such a thing. It would put me off if I were the renter.

When I was signing up, the site clearly stated that I could opt-in for the collection myself (and not have Airbnb do the collecting). However, I see no way to check that box when I did my listing. Can't find it anywhere to collect my own tax. It said I could do it, but I cannot find it anywhere.

I'd much rather just collect it myself and that way I can ensure the proper amount is sent to the state. If not, one could be liable for the difference and since they collected it, if I had to make it up, it would come out of revenue. Which isn't fair at all.

I've considered upping the price to account for tax, but if Airbnb is collecting it anyway, I'm double dipping my clients, which I do not want to do. Airbnb created this great website, but overlooked the simplist and most involved aspect...tax. Pretty big issue and I may close out my listing because of it. I DO NOT want tax issues coming back at me. So I'm not sure if I should include it in my price and try to find the "pay my own taxes" button somewhere or roll the dice and see if they collect and send in the proper amount. Since I owe my state a return every month and I'm also listed on VRBO, this could be pretty darn confusing on what to claim to the state when some is collected by airbnb and some is collected by me on VRBO. Kinda crazy.

Any ideas out there?

[Andrew245]

I agree totally!  The taxes collected have to be a separate line AND collected AND remitted back to us by ABNB to be able to collect these funds.  I have had a LOT of trouble from people to me because of this... hence why I focus on my VRBO account primarily.  The bookeeping there is SO much better!!