Paying taxes for airbnb in BC Canada

[Tahereh1]

Hi . I am fairly a new host . I have received a letter from CRA regarding paying GST on the AIRBNB unit. The occupancy taxes in the transaction history indicates PST & MRDT according to my accountant . Does anyone  know how to find  the GST paid out to the host by AIRBNB ? OR how to deal with the tax issue in BC Canad?

[Paula]

Hi @Tahereh1 Welcome to our Community.

I am sharing an article about 👉tax collection and remittance by Airbnb in British Columbia. You will also find the British Columbia government page that complements the information.

I am reaching out to some hosts in British Columbia to see if they have any advice to share. @Sarah5245 @Kate1749 @Jennifer1439 

Good luck,

[Kate1749]

@Tahereh1 Happy to answer any questions!

[Lee4141]

@Tahereh1 Apparently, it also matters if you own it as a sole proprietor, or as a joint tenant. If the latter, then a partnership has to be set up with a separate GST number, separate from any existing sole proprietor GST account you may already have.

[Kate1749 · Accepted solution]

@Tahereh1 I have added my GST number and info in my Airbnb tax settings and the 5% gets added to each booking and paid out to me to remit.

I can't remember if I added a setting somewhere that it's a 5% tax.

If you are under the Canadian threshold for income subject to GST, then you don't worry about it.  I had an existing GST number for my work already, so just added it to the Airbnb listing.

If you're income from Airbnb will exceed the Canadian threshold, you'll have to apply to get a GST number and make remittances. 

The good news is that you're accountant should be able to make claims against it for the GST you've paid for supplies, repairs and services at your rental. Make sure to ask your accountant though, I'm not a tax advisor!

Hope that helps.

[Anna102]

Hi there @Kate1749 - Wondering if you can help with any of these questions...

1. Can you can share the navigation sequence so I can determine if I have added my GST # to my Airbnb Account?
2. My booking breakout shows "Host Service Fee (x%) + VAT".   Does VAT mean GST?
3. Why does the Host service fee fluctuate so much... sometimes 15% sometimes 12.3% sometimes 3%  ?
4. How can I find the breakout of taxes that Airbnb has collected & remitted on my behalf for 2023? (I've tried Superhost Support to no avail 👎) With tax time coming I don't want to pay GST on Airbnb bookings if Airbnb has already done it on my behalf!  (I'm a sole proprietor who is GST registered.)

Thanks for any insights! Anna

[Kate1749]

Hi @Anna102  and sorry for the long delay in response. I'd written one and then noticed it didn't send.  If you haven't found your answers, I hope this helps.

1. To add your GST# follow these steps.  Click on your listing > you'll see it and the choices of: your space / arrival guide / then the symbol for another menu right beside those two headings. > click on the symbol and you'll get a new menu > select taxes > Select VAT/GST and indicate the % (5% in Canada)

2. Yes +VAT is the GST we're being charged on the host service fee

3. No idea. Ours is consistently 3%. I don't know if I have a setting somewhere for that. 

4. There is no breakout for taxes collected and remitted by Airbnb. It is very clear that they collect and remit PST & MRDT only and that the GST is the hosts responsibility 100% of the time.  
I hope this helps.

[Anna102]

@Kate1749 It's getting clearer! Thanks 💐 Based on what you provided here, I'll circle back to Airbnb to ask them some specifics about my  "Occupancy Taxes" amounts that shows up in my year-end Transactions report, and also about the fluctuating Host Service Fee I'm seeing.

Re #1, interesting that I'm not seeing that navigation path on my Desktop or Mobile... Wondering if there may be a new version that I should delete both and download a newer version.... Any insights on new versions or downloads?   I've been at this 10 years... maybe the apps don't automatically update with newest features?

Cheers, Anna

[Lee4141]

Good question, Airbnb could not tell me this either.

If you have since located the GST paid out by Airbnb, please could you kindly share. Thank you!