I’ve been hosting for a few months now and stalking this site as lots of great input and experiences can be found here. I’m working on my master spreadsheet for tracking and it’s about time to submit the quarterly tax submission for the sale tax here in WA state.
SO, buried in the ABB site I found how much ABB is remitting in taxes as I have to reference this payout on the quarterly tax form. It appears that ABB is submitting Occupancy Tax based on the nightly fee + service fees (that they charge the host). Please note that they call it Service Fee in the reservation and Host Fee in the tax summary.
It took me a while to figure out their math but it doesn’t make sense to me for ABB to pay Occupancy Tax on the Host fee. Usually I wouldn’t go through all of this trouble trying to figure out what they’re doing but now I’m wondering if I am reporting this tax correctly on my VRBO income.
Perhaps I’ve been looking at this too long…am I misinterpreting this? Here is a snapshot of a single reservation. Any input would be appreciated!
$116.42 x 19 nights $2212.00
Cleaning Fees $54.00
Service Fee -$67.98
ABB Remittance of Occupancy Tax
Host Fee 67.98
Cleaning Fee 54
Gross Earnings 2266 <-- this is 2198.02+67.98
Occupancy Taxes 199.41
(Amount + host fee) x 8.8% = Occupancy taxes