An important note before we get started: As your technology provider, we're here to help you understand how the pass-through taxes and other accounting features work, but we cannot advise you about specific tax policy. Please contact Airbnb or a tax professional to confirm which taxes you are responsible for collecting and remitting. Airbnb does provide resources on their website with guidance about tax collection and remittance: https://www.airbnb.com/help/article/1036
No recommendations made by us should be interpreted as tax advice, and we strongly recommend consulting a tax professional before making any changes to your workflow that affect the collection or remittance of taxes. By configuring this module you agree not to rely on any current or prior written or oral representations or understandings & waive any rights or claims arising from the same.
In certain regions, Airbnb doesn't collect and remit tax on your behalf automatically. With Airbnb's pass through tax feature, you can tell Airbnb which taxes to collect and pass through in the payout for you to remit yourself. Configuring this information prevents using the Airbnb Resolution Center to collect tax after the reservation is made.
Please note, you must configure the taxes for each individual listing since tax locations can vary per listing.
Configuration
To set up the pass through taxes, go to:
Connections > Channel Manager
Airbnb
You may have more than one tax that Airbnb does not collect and remit on your behalf. Please visit this page to confirm if Airbnb collect the tax for your location.
Locate the Pass-Through Taxes columns in the grid. There will be a column named for each of the tax regions in the CiiRUS account. Select the icon for the applicable listing and tax type to open the configuration window:
In the above example we have selected the icon to configure the pass-through sales tax for the specific listing.
Specify the Airbnb tax type
Airbnb provides a list of standard fee types that are itemized to the guest when generating a quote on Airbnb. Select which of these standard fee types the tax should be collected for.
If there is a business or TOT ID for this listing, click 'Yes' and enter the ID number
If tax should be waived for long term bookings over X amount of nights, enter the value in this field. Leave as 0 if not applicable.
Enter a value here if this tax should only be collected on the first X many nights of each reservation. For example, if you enter 7, then a 10 night reservation will only be charged this tax on the first 7 nights, with no tax being charged on the last 3 nights. Leave as 0 if not applicable.
After filling out the information, enable the checkbox to attest that the details are accurate.
Please do not enable the legacy tax remitting settings labeled as 'Tax 1 Remitted by MC,' 'Tax 1 Reporting Extra,' etc, as doing so may cause financial discrepancies. These are hidden in the 'Field Chooser' by default and will automatically be disabled by the system after configuring the pass through taxes.
Complete these steps for each tax type and listing. Once successfully configured, taxes for new reservations will be itemized and included in the payout from Airbnb.
Airbnb Host Payout
The tax will be collected at the time of booking by the guest and itemized in the host payout from Airbnb as shown below:
The booking total in CiiRUS should match the total amount of the host payout, aka, your payout from Airbnb.
For the amounts to completely balance, remember to add the 'Host Fee' Reservation Extra to the Airbnb Reservation Folio to deduct this amount from the total.
