Ontarians deprived of vacation tax credit because of Airbnb
Several Airbnb customers say they do not unable to obtain the lessor's Harmonized Sales Tax (HST) registration number. The company says this number is available on request.
Emily Young and her family of three have vacationed in Ontario for the past year. She was hoping to qualify for the Ontario Vacation Tax Credit.
However, when she filed her taxes this month, she was unable to obtain the HST number associated with the various Airbnb apartments she had rented.
This number is necessary to obtain the tax credit.
When she made her problem known to the platform, she said that she was redirected directly to the landlords.
Only one of them was able to provide him with this number. The other two again referred her to Airbnb.
However, the company allegedly told her that they could not provide her with these numbers for privacy reasons.
“I was hoping this gets sorted out, so I can fill out the HST part [on my tax return] and that I am not denied the holiday tax credit.
—Airbnb Guest Emily Young
In an email, the company replied that it had given special attention to her case but was unable to provide the information she requested.
We understand that this is probably not what you were hoping for, but we have come to this conclusion because the HST number is not information we provide to our guests, the email continued.
The rental platform, however, indicated that it provides this information upon request.
We have provided HST numbers to hosts and renters who have requested them, assures a door – Airbnb spokesperson Matt McNarma in a message.
He does not, however, provide any details regarding Emily Young's case.
The Ontario Vacation Tax Credit was introduced in 2022 to encourage families to explore the province in the midst of a pandemic when the tourism industry was in decline.
This tax credit allows Ontarians to claim up to 20% of their accommodation expenses while on vacation, up to a maximum of $1,000 per person and $2,000 per family. This translates into a tax credit of $200 per person and $400 per family.
This credit applies to the period from January 1, 2022 to December 31, 2022.
Administered by the Canada Revenue Agency, this tax credit is estimated to provide a refund of $270 million to 1.85 million Ontario families.
Emily Young lives in Mississauga. She explains that her three vacation homes were in Prince Edward Country, Owen Sound and Midtown, Toronto, respectively, for a total of around $3,000. She was hoping to be able to deduct a few hundred dollars from her taxes.
Maybe the government shouldn't have put so many restrictions on the holiday tax credit and made it so complicated. Or he should have said that Airbnbs are included if Airbnb does not give us the information, she believes.
According to the Ministry of Finance, Ontarians can report expenses vacation accommodation for less than a month in the province.
It also clarifies that Airbnbs are included in the list of accommodations that qualify as vacation property rentals.
Toronto accountant Sandra DaCosta says Emily Young's case is far off to be unique.
She indicates that several of her customers have told her that they have not been able to obtain an HST number after having requested one from their rental platform.
It's unfortunate because I think it takes people by surprise. Some [clients] have used third-party sites to rent their accommodation, for example Airbnb. In these situations, it is difficult to obtain the HST number, she explains.
Sandra DaCosta explains that several of its customers get no response when trying to get the HST numbers they need.
A Department of Finance spokesperson says housing landlords, whether businesses or individuals, must be registered with the Federal Goods and Services Tax (GST) and Tax Administration. Provincial Harmonized Sales Tax (HST).
According to Airbnb's website, these taxes apply to listings on its platform.
The ministry however did not indicate the procedure to follow if the HST number is not provided.
The ministry only specifies that it is important to keep the receipts rentals to claim this tax credit.
These receipts must indicate the part paid by the customer for his stay, the part of taxes paid, the date of this stay and the name of the debtor.
Last December, the Ministry of Finance specified that this credit would not be renewed for another year.
According to Information from Sara Jabakhanji
