Airbnb Illegally Charges Taxes in Some Areas

I was notified by Airbnb that they would begin collecting GST (goods and services tax) on my behalf, charging my customers when they booked. They also stated the taxes I owed from their rentals would be paid quarterly. The trouble is, I live in an unincorporated, remote area, where I am not required to have a business licence, and according to the tax laws, for my particular rental, do not require me to pay taxes based on the rental property tax requirements.

I contacted Airbnb about this and they said they were basing their tax collections on a province-wide average, which includes several major cities, all that do have to pay the taxes they are saving, to pay on the hosts’ behalf. In essence, Airbnb was charging taxes to my customers, and pocketing it for themselves, in an account, probably worth millions, for three months, (earning interest, no doubt), and then using it to pay others’ taxes, that my customers would not have to pay if Airbnb had not started this procedure.

I did try to resolve this with Airbnb and was never allowed to speak to an actual person, just prefab replies. I cancelled my account with them. Beware. People cannot book your home without paying the taxes Airbnb charges, even if they are not owed.

Posted in Airbnb Host Stories and tagged , , , , , .

4 Comments

  1. This is so true. They do the same in South Carolina where hosts do not have to pay taxes if they live on site. Airbnb has collected thousands from guests. I contacted Airbnb and Nothing. I contacted the tax office of S.C and they never heard of them. I looked up Airbnb on the Secretary of State website and they were NOT even listed as doing business in the state of S.C. I called Airbnb as a guest and mentioned these facts. Two days later they were registered as a business operating in the state of S.C. HUMMMMMMM You can look it up yourself. They are listed as a Delaware company. Why Delaware? Cuz they don’t have to pay taxes. They are committing tax fraud and I just don’t know how they get away with it? Must have officials in pocket.

  2. Don’t you need licenses to run a hotel or a bnb? Do you have them, and do you pay taxes over those earnings? If not, you are an illegal hotel so shouldn’t be complaining.

  3. Airbnb will take advantage when they can. It’s time for people to start class actions against Airbnb worldwide for its illegal activities.

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