Your short-term housing rental for periods less than 30 continuous days are taxable for GST/HST purposes. Long-term residential rentals are exempt from GST/HST.
If your short-term revenue exceeds $30,000 in a 12-month period, you are required to register and collect GST/HST on the income.
If you are using your property exclusively for short-term rental purposes, voluntary registration can be done for GST/HST before exceeding $30,000 of income.
As of July 1, 2021, new rules apply to platform-based short-term accommodation. The aim is to ensure all supplies of short-term accommodation are subject to GST/HST when supplied through a digital platform with the tax being collected by either the property owner or an accommodation platform operator. Generally, accommodation platform operators will only collect GST/HST when the property owner is not GST/HST registered.
Therefore, if you provide the information to the accommodation platform operator i.e AIRBNB that you are registered for GST/HST then AIRBNB doesn’t collect and remit; you will self-collect and submit your HST returns.
If you register and collect GST/HST on the rental income, you may be able to recover GST/HST paid on certain operating costs, such as:
- Referral fees to a website
- Advertising
- Maintenance and housekeeping expenses
- Utilities
- Property management fees
Make sure you keep detailed records of all the rental income you earn and the expenses you incur. You can validate your purchases and operating expenses with supporting documents such as invoices, receipts, and contracts.