Question about charges on Airbnb bookings imported through OR Channel Bridge

Valerie R
Oct 10, 2019 10:14 PM
Joined Sep, 2019 121 posts

I used the OwnerRez Channel bridge to import the Airbnb bookings for my properties. I have a question about the way the "Charges" are being broken out on these bookings.

In our FL location, Airbnb collects & remits 100% of all of the required taxes (11.5%). But in the "Charges" section of the imported Airbnb bookings they all have a "State Sales Tax (6%)" line item included in the funds for the "invoice' that the guest pays you for the booking."

See this screen shot:
https://snipboard.io/98Pboi.jpg

Why does this 6% State Sales tax line item appear in the invoice section instead of in the "Guest Channel Fees" section? Have I incorrectly set up the taxes for this property that is causing this?

Chris Hynes
Oct 11, 2019 11:15 AM
OR Team Member Joined Oct, 2012 1401 posts

Yes, the system is assuming that the tax is built into your rates because of the criteria. To fix this, go into the settings for that Tax and set the Listing Sites criteria to "Everything but Airbnb".

Valerie R
Oct 11, 2019 12:04 PM
Joined Sep, 2019 121 posts

Thank you Chris. Just to make sure I understand....in locations where Airbnb collects & remits 100% of the required taxes, in our Taxes settings for those locations we should choose "Everything but Airbnb" in the Listing Sites criteria.

What should we do for those locations where VRBO and/or Airbnb collect & remit only a portion of the required taxes? In the other 2 locations of our properties those sites both collect & remit all BUT 2% of the required taxes.

Do I need to create a separate 2% tax in OR, associate it with the particular properties in those locations, and then in the Tax settings choose "Only" "VRBO, Homeaway, Airbnb"?

Chris Hynes
Oct 11, 2019 12:44 PM
OR Team Member Joined Oct, 2012 1401 posts

For VRBO, how do you deal with those now? Do they allow you to set an additional tax % over what they remit?

If you look in your Airbnb account at those properties where they don't get all of the taxes, is there a Custom option there on the Local taxes and laws section?

Valerie R
Oct 11, 2019 5:31 PM
Joined Sep, 2019 121 posts

VRBO does not allow owners to specify any other tax than the amount that VRBO themselves are collecting & remitting. So I have to send the guest a payment request to pay the additional 2% local lodging tax that the site did not collect.

On Airbnb, one of the properties that Airbnb does not collect the entire tax for (located in VA) DOES have the "Custom > Add a tax" option, but the other property that Airbnb does not collect the entire tax for (located in CO) does not have that option.

I think you are saying that at least for the property that does have the "Add a tax" option on Airbnb, if I choose that option then Airbnb will collect the entire amount required and remit all of it to me, and then I would be responsible for remitting the tax to the appropriate authorities.

Let me ask you this: I am in the process of having all of my VRBO listings (and soon Airbnb now that it is possible) to be handled through your Channel manager. Do I understand correctly that once that happens then going forward any VRBO or Airbnb bookings will have 100% of the tax paid through to me and then I'll pay the tax to the authorities?

Thank you for your help. Since I am new to OR I am reviewing each booking that has been imported from those sites and need to make sure I am getting the $$ correctly allocated for each booking.

Chris Hynes
Oct 11, 2019 6:26 PM
OR Team Member Joined Oct, 2012 1401 posts

Yep, exactly! I didn't realize you were on the path to API integration but that's highly recommended and simplifies everything. Once you're API integrated with HomeAway the taxes will be configured based on what you've got set in OwnerRez and they will send the entire amount to you and you'll be in charge of paying the tax to the authorities.

Airbnb works the same way with the "Custom tax" option -- as long as that is supported in the area for the listing, you'll be able to switch to that and all taxes will be configured in OwnerRez and Airbnb will send those all to you and you'll do the remittance.

The Airbnb API does not let us force this option though like HomeAway -- Airbnb has to enable it on their end and they're rolling it out in different areas. So contact them about the CO property and see if they can enable the Custom tax option there and that'll be solved as well.