PST on short term accommodation

PST is collected on short term accommodation in BC – do you need to register and collect PST?  Watch my video and find out!

Transcript:

Hi, Kerry here from My Cloud Bookkeeping. I was recently visiting beautiful Hornby Island, and I attended their business mixer and discovered that there was another new tax I knew nothing about. PST is now collected on short-term rentals at a rate of 8%; the landlord where I was staying asked for some more information, and I thought perhaps I’d do some research and a video because if she wants to know I’m sure a lot of other people do too.

In an effort to level the playing field between hotels and short-term rentals such as Airbnb and vacation rental by owner, the provincial government is now applying PST at a rate of 8% on all short-term rentals, and that was effective October 1st in 2018, so last year. Now, if you are using one of the platforms I mentioned such as Airbnb then they are collecting the tax for you there’s absolutely nothing for you to do other than be aware that it might be costing people an extra 8% to stay with you, it’s all taken care of.

Now if you list on Airbnb but also advertise in your local community newsletter or a tourism website and arrange some of these rentals yourself, you may be required to register and collect the PST. If you’ve earned more than $2,500 in the prior year or expect to earn more than $2,500 in the next year and you’re renting for 27 days or less that’s the short-term part, then you’re required to collect the 8% PST. If you are required to register, there’s a link below; you can do it all online or if you prefer you can register in person or by mail. If you’re registering online be sure to have BC ID such as your driver’s license, incorporation and federal business number if your property is owned by a corporation, and the property address.

Now if you’re using QuickBooks, I have a video that will show you how to do this.  Hopefully, this helps to clarify the situation. If you need any assistance and you’d like to use QuickBooks, by all means, reach out I can help you get set up.

If this was useful, click like below, subscribe to my channel and by all means, leave a comment, let me know if there’s anything else you’d like to know about, my next video could be for you.

Cheers!

 

 

 

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