Help, I have not been able to figure this out. AIRBNB has no answers.
What is GST? Georgian Standard Time? This an International Forum and we don’t know local acronyms.
You only declare GST on a business income of $30kCad+.
Goods and Services tax
How do you collect it from the guest? I am going to be hitting the 30k mark.
Thanks,
I am going to hit the 30k mark later this year. I don’t see anyway for this to be collected on airbnb. I think I am just going to have to take it out of my payout. It is a bit unfair that larger hosts that do more than 30k a year have to pay but smaller ones don’t. It would be nice if airbnb collected it on all bookings but i doubt that is going to happen.
Ahhhh…the spoils of success! But this is where you bring in the tax lawyer with the sharp pencil. Tell you the truth I found dealing with the CRA at this level to be confusing, and rather adversarial. And they can retroaudit 7 years.
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I have only opened last July. We have decided to raise our rate by 5 percent. We will just cover all the bookings up til now. AIRBNB told me that they could collect it through the same place you collect for stolen or damaged items. You would have to ask every booking after you figured out the amount. What a pain that would be. We are just going to say all fees and taxes are included.
I agree it is unfair that larger commercial bnb owners can get it deducted.
Thanks for your input. I have decided to raise my rates by the 5%. Starting my next booking. See below for the alternative Airbnb gave me. Go through their dispute department.
Ultimately we are beholden to the CRA. I had some dealings with them in 18 and it’s unpleasant and confusing. And they are not nearly as sincere as we might hope. So document everything w annotations.
And congratulations on your highly successful Airbnb!
Hi.
No, Airbnb does not collect GST so you will need to add 5% in your daily rate+cleaning.
You call CRA to open GST account number as soon as you hit $29,999. Until creating GST number you won’t be able to claim GST you paid to reduce taxable income. So it’s logical to spend capital expenditures nand other big expenses After $30,000 is hit
When creating GST number you will be creating Business Number as well which you need for tax filing.
Before creating GST and BN consider what business structure benefits you the most tax wise.
PST, you don’t need to register with BC Minister of Finance because Airbnb collects for you.
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Airbnb said they would collect it through the resolution center. So then would we raise our rates? I think it would just increase everything else. Ugh CRA is making their cut, that is the important thing. Thanks for the congrats. I live a in an ideal part of the world. There is a huge need for places to stay. We are a small fishing village that hosts close to a million visitors a year.
Airbnb said they would collect it through the resolution center.
They probably meant PST, not GST.
So then would we raise our rates?
It’s logical to increase rates by 5%. I didnt.
Not sure if anyone is still replying to this but as it is now 2023, we have been having a tough time trying to get any sort of confirmation from AIrbnb on what it charges the GST on. Prior to July 1, 2022, we would collect the GST from our guests separately through the Resolution Centre. We mentioned this in our listing so that guests don’t get surprised by the added money request from us. Lately, Airbnb has assured us that they are now collecting and remitting the GST “on our behalf”. They do this for hosts for the MRDT + PST taxes. However, after hours of phone chats, email exchanges, it is now proven that Airbnb only collects and remits GST on their Guest Service Fee and not on our Accommodation and/or Cleaning Fees. They still collect and remit the PST + MRDT but not the GST on the Accommodation and/or Cleaning Fees. Has anyone else had issues with this??
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