Hi @Bo126,
Welcome to the community!
As a new Airbnb host in Toronto, understanding how to handle VAT, known as the Municipal Accommodation Tax (MAT) in Toronto, is crucial. For Toronto-based listings, Airbnb directly collects and remits a 6% MAT on the listing price, including cleaning fees, for applicable reservations. This process is automated, so you don't need to calculate or submit this tax yourself for those bookings. It's part of Airbnb's efforts to comply with local tax laws and regulations, ensuring a smoother process for hosts and guests alike (https://www.airbnb.ca/help/article/2283)
For a any other tax obligations, including whether your Airbnb operations classify as a business and the implications thereof, it may be beneficial to consult with a tax professional or refer to resources provided by organizations like H&R Block or BDO Canada. This will help you navigate the complexities of tax collection and remittance, ensuring compliance with Canadian tax laws.
H&R Block - https://www.hrblock.ca/media/2021-Airbnb-Reporting-Guide-EN.pdf#:~:text=URL%3A%20https%3A%2F%2Fwww.h...
BDO Canada - https://www.bdo.ca/insights/tax-considerations-airbnb-hosts
Hope this helps!