Airbnb and the Quebec government have come to terms on a tax system for those using the home-sharing online platform.
The deal, announced Tuesday, would allow Airbnb to collect and remit the lodging tax directly to the government on behalf of the hosts.
As of Oct. 1, Airbnb will automatically collect and remit the 3.5 per cent tax on lodging on all bookings made in the province, which totalled 1 million in the last year.
Tax revenues were valued at $3.7 million last year. These new revenues will be returned to the province's 22 regional tourism offices.
The fee will be implemented on stays of 31 days or less.
“We think we should pay our fair share. Lodging taxes, hotel and tourism taxes I think is an important thing for us to contribute to,” said Airbnb’s public policy manager Alex Dagg in a news release. "
Quebec Tourism Minister Julie Boulet called the deal a “positive step toward the future and development” of tourism, adding that the government is adapting the tax system to the new sharing and digital economy.
"The agreement not only addresses the concerns of the tourism industry, but will also ensure healthy competition within the tourism accommodation sector. It is essential that we join and keep pace with the collaborative economy,” she said, adding that the same taxes will be applied to other home-rental websites.
Boulet said an omnibus bill will also be tabled this fall to clarify the rules and definitions.
“We have to make a distinction: draw a line between what the sharing economy is and what is a business," she said.
Airbnb also released some statistics on its business in the province:
- Annual earnings for a typical Airbnb host: $2,600
- Number of active hosts: 22,300
- Nights hosted per year for a typical listing: 38
- Tourist tax collection: total collected taxes for 2016 would have been $3.7 million for the province of Quebec
- Guest arrivals: In the last year, there have been nearly one million guest arrivals in Quebec on Airbnb
