But AirBnB says they are paying all of my taxes for me…

This is a common source of confusion for taxpayers since AirBnB misleadingly claims to collect “local occupancy taxes” for its hosts.  In fact, AirBnB only collect the 5.3% Virginia Retail Sales Tax and not the local transient occupancy tax of 8%.  The host is still responsible for filing the local return and paying the local tax.

Remember to report total gross rentals received and NOT the payout totals as calculated by your online rental platform.

Effective September 1, 2021 SOME other online platforms (NOT AirBnB) began collecting and remitting the local transient occupancy tax on behalf of their hosts.  If you list your property on one of those other platforms, you must still file monthly and provide documentation that the tax was paid on your behalf.  Otherwise, you are still responsible for paying the tax.

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1. How is transient occupancy tax filed and assessed?
2. Can I file and pay online?
3. What constitutes an exempt rental? What documentation should I provide to corroborate exempt rentals?
4. But AirBnB says they are paying all of my taxes for me…