sales taxes

Deborah190
Level 2
North Creek, NY

sales taxes

Does Airbnb collect sales tax on behalf of its hosts?

23 Replies 23

Absolutely! Airbnb is doing hosts a great disservice by not having options for all possible taxes to be applied, up front, that any city/state/county might impose. Hosts can fill in the applicable tax percentages, with the Airbnb doing the calculations. All monies from those taxes to be collected from the guest, and paid out by the  host appropriately, spelled out in their contract. If a host chooses to pocket the money, instead of paying those taxes, then that illegal rap falls on them.                                                                                                                                                                                                    Realizing that hosts have to concoct their own method of informing the guest after a booking request, of all applicable taxes through a secondary proposal is clumsy and ridiculous, tho is our only option at this point. Let alone, it appears that in some cases, tax is being taxed, at least in NE. This is craziness!                                                 Not to mention the Instant Booking option becomes unusable, thus may affect your reservations, and also your host rating. 

I have a state sales tax ID number with an annual payment schedule.  I was planning to pay the annual amount due based on percentage of gross earnings.  But AirBNB is charging guests the sales tax rate.  So far I have not seen a spot to enter my state sales tax number for directing the charged sales tax to my state sales tax account.  Can anyone inform me how that works?

Laura, what state are you in? If AirBnB is collecting and remiting the sales tax, you can't do the same. Call your state's department of revenue, sales tax office, and find out the story. Also, is there a local transient lodging tax AND a state sales tax? If so, check with your city or county to make sure you know how it all works.

Laura,

I am wondering if you got any answers to this question?  I am in the same boat.  I cannot see where Airbnb would know where to apply the state sales tax so that I get credit.  They did not ask for my state ID number.  Thanks.

 

Todd

Todd, does AirBnB collect and remit sales tax in Colorado? They do not here in Virginia, unfortunately. If they didn't ask for your tax ID number, perhaps they don't collect there either?

Renee291
Level 7
Cincinnati, OH

I am definitely interested in Airbnb charging my state sales tax on  the invoice, and if possible remitting for me.  Thaks for the tip on the follow up message to add sales tax "manually".

Progresss here in the Charlottesvillle area! For some unknown reason, this spring Airbnb suddenly added a line item for sales taxes to our listings allowing us to collect sales taxes. We never understood why this was such a difficult ask and it took us years to get it. But now Airbnb sends us two separate payments for each stay, one the collected sales tax and the other the rental fees. We still have to remit but I no longer have to send a separate invoice to collect for taxes. There’s no reason they can’t do it for you either. 

Did you have to use the Custom setting under taxes, thereby opting out of the Default setting?

thanks for any help. I am trying to get help from Air but they know nothing about how to help with the tax or website interface.

 

Cynthia519
Level 2
Charlottesville, VA

Hosts in Charlottesville, VA please be aware that in VA the "occupancy tax" term that Air uses is actually the "Sales Tax" collected automatically through the Airbnb platform and is remitted to the state (5.3%) and then 1% goes to the county...why they didn't use the words "Sales Tax" I do not know...this was DAys worth of research. Now if anyone knows how i can add a tax line for 5% county lodging tax I would be most appreciative. Cynthia