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Airbnb hotel tax collection starts June 1

Gator's Mom
May 19, 2017 10:01AM

Registered: 5 years ago
Posts: 748

from Airbnb website:

U.S. Virgin Islands
Starting June 1, guests who book Airbnb listings that are located in the U.S. Virgin Islands will pay the following tax as part of their reservation:
The U.S. Virgin Islands Hotel Room Tax: 12.5% of the listing price including any cleaning fee for reservations 89 nights and shorter in the U.S. Virgin Islands. For detailed information, visit the U.S. Virgin Islands Bureau of Internal Revenue website.

[www.airbnb.com]

[viconsortium.com]

Re: Airbnb hotel tax collection starts June 1

islandjoan
May 19, 2017 10:04AM

Registered: 11 years ago
Posts: 1,431

Another nail in the coffin to the VI economy.

Re: Airbnb hotel tax collection starts June 1

ms411
May 19, 2017 11:04AM

Registered: 8 years ago
Posts: 3,333

Most of the Caribbean islands are partnering with AirBnB so the VI is not alone. They all need revenue. There was an article on caribbean360.com that said many are also considering sin taxes.

Re: Airbnb hotel tax collection starts June 1

sjointer
May 19, 2017 01:13PM

Registered: 1 year ago
Posts: 56

Quote
ms411
Most of the Caribbean islands are partnering with AirBnB so the VI is not alone.

Combined with the fact that most states on the mainland do this already, and USVI is "tardy to the party".

Re: Airbnb hotel tax collection starts June 1

ms411
May 19, 2017 01:58PM

Registered: 8 years ago
Posts: 3,333

Quote
sjointer
Quote
ms411
Most of the Caribbean islands are partnering with AirBnB so the VI is not alone.

Combined with the fact that most states on the mainland do this already, and USVI is "tardy to the party".

Great phrase! Yes, as usual USVI tardy to the party. We'll be tardy to the pot party, too just like we were tardy to the casino party.

Re: Airbnb hotel tax collection starts June 1

Gator's Mom
May 19, 2017 02:12PM

Registered: 5 years ago
Posts: 748

In the Consortium article, it states the IRB will be given a spreadsheet of what the tax was assessed on.

So will this "out" Airbnb operators who don't have business licenses and/or don't claim Airbnb income on their 1040s?

Re: Airbnb hotel tax collection starts June 1

sjointer
May 19, 2017 02:42PM

Registered: 1 year ago
Posts: 56

Quote
Gator's Mom
In the Consortium article, it states the IRB will be given a spreadsheet of what the tax was assessed on.

So will this "out" Airbnb operators who don't have business licenses and/or don't claim Airbnb income on their 1040s?

I was under the impression that these taxes are collected as an "add-on" to AirBnB rates, similar to when you order a room at a standard hotel. The host never collects from the guests, as I understand it. The host collects from AirBnB, minus the taxes and whatever fee AirBnB puts on their hosts.

This is to say, I'm not certain how USVI gets the names and addresses of the hosts unless that's somehow part of the tax collection agreement.

Re: Airbnb hotel tax collection starts June 1

Gator's Mom
May 19, 2017 02:48PM

Registered: 5 years ago
Posts: 748

Read that last paragraph mmmmm

[governormapp.com]

Quote
sjointer
Quote
Gator's Mom
In the Consortium article, it states the IRB will be given a spreadsheet of what the tax was assessed on.

So will this "out" Airbnb operators who don't have business licenses and/or don't claim Airbnb income on their 1040s?

I was under the impression that these taxes are collected as an "add-on" to AirBnB rates, similar to when you order a room at a standard hotel. The host never collects from the guests, as I understand it. The host collects from AirBnB, minus the taxes and whatever fee AirBnB puts on their hosts.

This is to say, I'm not certain how USVI gets the names and addresses of the hosts unless that's somehow part of the tax collection agreement.

Re: Airbnb hotel tax collection starts June 1

caribstx
May 19, 2017 03:08PM

Registered: 4 years ago
Posts: 424

Quote
sjointer
Quote
Gator's Mom
In the Consortium article, it states the IRB will be given a spreadsheet of what the tax was assessed on.

So will this "out" Airbnb operators who don't have business licenses and/or don't claim Airbnb income on their 1040s?

I was under the impression that these taxes are collected as an "add-on" to AirBnB rates, similar to when you order a room at a standard hotel. The host never collects from the guests, as I understand it. The host collects from AirBnB, minus the taxes and whatever fee AirBnB puts on their hosts.

This is to say, I'm not certain how USVI gets the names and addresses of the hosts unless that's somehow part of the tax collection agreement.

It's highly unlikely that AirBNB is providing the metadata on which properties or which owners the 12.5% tax is specifically derived from.

I don't think anyone has anything to worry about regarding unnecessary business licenses or $100 fire inspections.

Re: Airbnb hotel tax collection starts June 1

vicanuck
May 19, 2017 03:13PM

Registered: 8 years ago
Posts: 2,178

Quote
Gator's Mom
In the Consortium article, it states the IRB will be given a spreadsheet of what the tax was assessed on.

So will this "out" Airbnb operators who don't have business licenses and/or don't claim Airbnb income on their 1040s?

The Consortium can write whatever they want.

I personally doubt AirBNB will provide any identifying information whatsoever.

Re: Airbnb hotel tax collection starts June 1

Scubadoo
May 20, 2017 12:35AM

Registered: 3 years ago
Posts: 1,877

The question remains, if the legal requirement to file and submit the monthly hotel tax forms and payments still exists and Airbnb starts doing this are the Airbnb hosts that are not doing it still breaking the law? Are they still expected to file the monthly tax forms but not the actual payments now being submitted by Airbnb? There are likely some hosts that are abiding by the law and submitting the forms. If they stop submitting the forms and payments is the BIR going to go after them?

The BIR Director says "We look forward to pursuing this additional avenue of increasing the tax revenue from Airbnb hosts as they participate in our Territory’s tax regime by fulfilling their filing and payment obligations." Does this imply AirBNB is going to file the monthly tax forms on behalf of each host (with all of the host's detailed information)?

It will be interesting this pans out before the BIR catches up with the details.

Re: Airbnb hotel tax collection starts June 1

Alana33
May 20, 2017 02:23AM

Registered: 6 years ago
Posts: 11,674

Don't complain about the roads, crime and other things if you don't pay your fair share of required taxes, etc.

Re: Airbnb hotel tax collection starts June 1

ms411
May 20, 2017 02:51AM

Registered: 8 years ago
Posts: 3,333

See what Turbot Tax has to say on the subject.

[turbotax.intuit.com]

Re: Airbnb hotel tax collection starts June 1

sjointer
May 20, 2017 08:55PM

Registered: 1 year ago
Posts: 56

Quote
Scubadoo
The question remains, if the legal requirement to file and submit the monthly hotel tax forms and payments still exists and Airbnb starts doing this are the Airbnb hosts that are not doing it still breaking the law?

I wasn't really clear before. I think AirBnB does this on behalf of the hosts so the hosts don't need to worry about it. They just need to pay income taxes.

Re: Airbnb hotel tax collection starts June 1

Scubadoo
May 20, 2017 09:13PM

Registered: 3 years ago
Posts: 1,877

Quote
sjointer
Quote
Scubadoo
The question remains, if the legal requirement to file and submit the monthly hotel tax forms and payments still exists and Airbnb starts doing this are the Airbnb hosts that are not doing it still breaking the law?

I wasn't really clear before. I think AirBnB does this on behalf of the hosts so the hosts don't need to worry about it. They just need to pay income taxes.

Regardless until the law or IRB rules are changed the home owners are still required to submit the monthly tax form and payment. I haven't seen any change of instructions for this yet on IRB web site. The hosts using Airbnb that are currently submitting payment to the IRB are going to have fun with this. Well I guess IRB still has 10 days yet. I'm glad I don't do the Airbnb ting.

Re: Airbnb hotel tax collection starts June 1

caribstx
May 22, 2017 05:51PM

Registered: 4 years ago
Posts: 424

Quote
Scubadoo
I'm glad I don't do the Airbnb ting.

It's not for everyone but they can generate a lot of money for very little work. I was surprised at how quickly mine took off after putting the ad up on AirBNB. I used to have long term tenants but this is much better. Here today, gone tomorrow!

Re: Airbnb hotel tax collection starts June 1

singlefin
May 22, 2017 06:41PM

Registered: 4 years ago
Posts: 601

Quote
Alana33
Don't complain about the roads, crime and other things if you don't pay your fair share of required taxes, etc.
thumbs up

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