sales tax collection and remmitance

[Jaymi0]

Can anyone clarify how the new sales tax and remittance process works.  In the past, I collected sales and occupancy tax upon arrival and filed and paid annually. Now it seems that Airbnd will do this for my location.

However, I just received my first booking request under this new policy and there was no line item for the 10.5% sales tax & occupancy tax? If they do not include it on the quote, how can we confirm that they are actually collecting the requited sales and occupancy taxes on bookings? Does Airbnb report the and remit the taxes?  Or do they send us the tax with our payout and do we include it with our reports?

This seems to confuse things more and could wind up costing hosts if this isn't clarified. 

[Dave-and-Deb0]

Hi @Jaymi0,

It appears that they are collecting the sales tax for you.

If Airbnb collects for you, they remit for you.

Dave

[David-And-Cindi0]

Hi Dave, I see the printout where it details the breakdown of money collected. I can't seem to find that page. Can you direct me there? I have the same question. Thanks.

[Dave-and-Deb0]

Hello again @Jaymi0,

Here is an Airbnb article which also answers this question: https://www.airbnb.ca/help/article/1036/how-does-occupancy-tax-collection-and-remittance-by-airbnb-w...

Dave

[Sylvia-And-Fritz0]

I can understand Airbnb collecting the taxes from the guest. What I  can't understand is the remitting part. How can Airbnb remit the taxes to the government on the owner's behalf if Airbnb doesn't have the owner's Federal tax ID or social security number? 

[Ellen12]

Airbnb asked for my federal ID# - I assumed this was for purposes of issuing 1099.  But they do not have access to my city, county and state sales tax returns in order to file these on a monthly basis.  I need help here???

I'm new to Airbnb and so far not happy with getting no help and no one to call.

[Armand4]

I am really disgusted with this sales tax thing also and noone to call.  VRBO has a line item to collect sales tax on top of the regular price.  So far we have been absorbing the cost, but cannot continue to do that.

[Ellen12]

Has ABB said they were collecting and remitting sales tax in your area?  I received an email from them 6 months ago or so in that regard.  And I see that it became a line item just like VRBO's remittance info.  (I also do both VRBO and ABB).  

So, we are not collecting nor remitting lodgings/sales tax on our ABB bookings but continue to do so on VRBO bookings.  

I think if you did not receive an e-mail from ABB regarding sales tax, then you should continue to remit as you always have.

[Jaymi0]

Hi Armand,

Things have gotten much easier. Airbnb collects, pays and reports the sales tax directly in my area. Since Airbnb handles the tax reporting and payment, they pay me net so I don't have to include Airbnd revenue in my local sales tax revenue report. In some ways it's easier than VRBO's line item now... because I do have to file a report and pay the taxes myself.

Before Airbnd collected sales tax in my area, I just added my sales tax 10.5 % to my total (either to my rate or with a fee) and explained that to my guests. That way I didn't have to absorb it.

You can call Airbnb at 1-855-424-7262 or 1-415-800-5959 and find out how it works in your area.

Good luck,

Jaymi

Good luck,

Jaymi

[Sherri25]

Thanks for providing the number because I just learned after being in hold for 39 minutes that Airbnb is not and does not collect sales tax in Indiana. So I owe that off my net amount. There is too much conflicting information and Airbnb should not rely on the community, but communicate clearly the facts 

[Teresa18]

I was told AirBNB would begin collecting my Sales and Use Tax on August 15, 2015.  Our county does not charge an occupany tax.  I added our tax rate to my information and have been receiving payouts that reflect the net amount, less AirBNB's fee. I 'm getting all of my information ready to send to my accountant.  When I downloaded the "tax information" I received from AirBNB in January it is only an Earnings Summary and does not include how much tax they've paid on my company's behalf.  Now I'm told I'll have to wait one to two days for a return phone call.  I have a sneaking suspicion they haven't paid anything and I'm going to have to pay it off my NET amount, now with penalty and interest!  Frustrating!!

[Marie54]

If you didn't configure it into your pricing, it would not have been collected.

[David519]

Hey Teresa,

Did you ever get this issue resolved? I feel I may be in the same situation. AirBnB said they would collect and remit as of last summer, but I don't see it broken down in my earnings summary... and I'm embarrassed to ask my previous guests if AirBnB collected tax from them. 

David

[Marie54]

If a 3rd party collects tax on your behalf, it has to go dirctly to the government entity for which it was collected.  That is the law.  it prevents merchants for charging additional monies under the label of "tax", putting the money in the bank, and never turning it into the government.

[Lavinia3]

The question still remains - How is the link established between the money collected and remitted by Airbnb on my behalf and the money that I have received as rent? In other words - how can I prove that the sales tax has been collected and paid for the sale that I made? Do I explain it by saying 'Oh, that's Airbnb's problem, not mine'? Is there a link?