[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.