Airbnb errors in applying HST and occupancy tax in Ontario

[Laura5572]

SInce July 1 2022 when Airbnb started the new tax collection method, they have made MANY mistakes. 

1. I am a HST registrant and my number was on file with Airbnb. HST at 13% was charged to guests and included in my payout for me to remit, correctly. 

2. After July 1, Airbnb began showing my listing with 26% tax ! bookings plummented even though if a guest booked , the tax of applied correctly.

3. I called and asked why they couldnt show the right tax prior to booking , after many many amany calls and listening to the same script repeatly, once day this 26% vanished .... but so did the13% that should have been charged. more phone calls ,,, no one knew the answer. 

I decided to remove my tax number and just let them collect the tax.  Guess what ? even with no tax number on file they did NOT add the HST. 

4. So I tried to add my tax number back in , could not do it ... greyed out save buttom. I was told that I could not change it because I had a channel manager but, I had removed it with no problem. 

5. more phone calls and emails, one day I try to add it and it will save now. So the tax number is back in however I received a booking this week with no HST charged but with an accomodate charge at the rate of .01834842 ???? cannot figure out where that came from more phone calls. 

6. I have received a rediculous thread of emails taking about service charge ??? not what I called about ad How Airbnb is just doing what is legal and that they charge all Canadian bookings the same rate , not my province. But Canada has different rates by province so how can that be legal ? 

7. the link to a help article sent by Airbnb lists the cities in Ontario were an accomodation tax of 4% applied. I do not live in one of those cities, their response ? your city hasnt been updated yet but no answer to this crazy amount added to my last booking 

8. conclusion my guests are being charged an illegal accomodation tax and NOT being charged the legal 13% 

I have called over 20 times, sent examples , written a detailed explanation of Canadian tax law in Ontario and all I get back is a scripted response that doesnt not solve the problem. 

How do I get this fixed ?

[Fred13]

Do you have to get Airbnb involved in your taxes, outside of sending you a 1099? Is there a choice?

[Laura5572]

Airbnb entered into a legal agreement with the Government of Canada (where I live) to collect and remit the applicable sales taxes so yes Canadian Hosts have to get involved to ensure that the tax is being correctly applied. As we are doing business in Canada, hosts are legally liable for taxes to be collected and paid on their sales. 

[Fred13]

Got it. So in Canada ~Airbnb~ is forced ( I am sure they want no part of the role) to be the collector of taxes, meaning the host doesn't get a 1099 for example and they are responsible for paying according to what they made like in the U.S. Very cozy.

[Laura5572]

Sorry I dont know what a 1099 is at I am Canadian. When we charge, collect and remit HST we are also allowed to apply Input Tax Credits for taxes paid on goods and services used to earn the taxable income so we do get some tax relief. With Airnbnb collecting the tax, we get no credit for HST paid by us.

[Bhumika]

Hello @Laura5572 , 

To have you get more clarification regarding this, I have nudged the concerned team. Hope you receive some resolution soon.

We're happy to announce the Month of Celebration!

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[Laura5572]

I have reported this many times , it get scripted replies.

I have bee told on several occassions that it would be forwarded to the specialized team. Got one your who said she was closing the file and would communicate with me at email.  NOTHING.   This is rediculous as Airbnb is actually violating the agreement they made with the Government of Canada to directly collect tax from MY guests and remit it on my behalf. Instead the guest is not getting charged at all and I have to ask them for the tax when they arrive. This does not mke for happy guests. 

[Allison94]

Hi @Laura5572  I am a Host in Calgary, Alberta and I am also encountering an issue with Airbnb incorrectly collecting Occupancy Taxes for one of my listings. 

And I have also shared the same frustrations with the resolution process, and I am still waiting for this issue to be resolved after countless hours on the phone, and 5 separate Airbnb Support Ambassadors that have not been able to provide any assistance. Was this issue ever resolved for you?