[burke]

In Canada, businesses are exempt from collecting GST/HST if the business makes under $X per year. This feels sensible and reduces paperwork and things to think about when starting up, but is a clear example of how AirBnB was skirting the rules by treating each renter as a business. They should have been collecting GST/HST from the start at the platform level.

[mattbee]

In the UK they already add VAT to their commission fees, which is what Airbnb is "selling" e.g. if you pay £100 for a stay in a UK-based short let, Airbnb's fee on that might be £15, of which £12.50 is their fee, and £3 is 20% VAT. £85 is held in trust for the host, and passed on direct.

So Airbnb's income on that transaction is £12.50, not £100.

Hosts do sell their properties on multiple platforms, and their income determines whether they have to register for VAT. In Canada it's apparently $30,000 per quarter, in the UK it's about £85,000 per year. So lots of Airbnb hosts don't currently have to pay VAT.

[randlet]

$X is $30,000CAD FWIW. The exemption is helpful for getting off the ground as it's one less thing to think about, even though in reality charging (and filing) GST/HST is not very onerous.