When listing on Airbnb, one thing to note is that Airbnb will automatically collect and remit taxes in some locations for some municipalities.
There are some edge cases where they will collect some taxes, but not all. For example, they may collect local taxes, but not state taxes. There is a workaround for making sure the correct taxes are charged from the Airbnb app within the MyVR account.
Please refer to the following Airbnb help articles to determine which, if any, taxes Airbnb will automatically collect and remit.
From the Airbnb application in MyVR under Listing > Settings > Rates & Fees, users will see an interface where Taxes and/or Non-Tax Fees may be included.
This is one way to exclude the "Tax" based fees.
From the Properties > Property > Rental Fees section in MyVR, you can set up various types of fees for a property including "Tax" and "Fee."
To correctly configure Airbnb listings in regions where Airbnb will automatically collect and remit taxes, we recommend the following:
- Determine which taxes Airbnb will automatically collect and remit and create a Fee with Fee Type "Tax" naming the fee accordingly.
- Determine which taxes Airbnb will not automatically collect and remit and create a Fee with Fee Type "Fee" naming the fee accordingly.
- Set "Include Taxes" to "No"
For example, if Airbnb will collect and remit a county tax of 5% and a city tax of 2% but will not collect and remit the state tax of 11% then you would create the following fees:
|Fee Name||Fee Type||Fee Amount|
Note: Set "Include Taxes" in this case to "No" so that the guest is not charged twice for the taxes that Airbnb is automatically handling.