GST/HST Implications on Short-Term Rental Properties 0

Posted On August 3, 2023, by Angela Delaney

Hello again to our valued readers. We are back with another installment in our education series, ‘Special Tax Topics.’ This time, we’ll explore a subject that’s becoming increasingly important in today’s changing real estate landscape: the GST/HST implications on short-term rental properties.

What We Know: Short-Term Rentals and GST/HST

Firstly, let’s clarify what we mean by short-term rentals. These are properties that are rented out for short periods, often on platforms such as Airbnb or VRBO. The rise of these platforms has led to an increase in short-term rental opportunities, bringing with them unique tax implications.

Generally, in Canada, if you are providing short-term rentals of a property, it is considered a commercial activity. If your revenues from such activities exceed $30,000 in a single calendar quarter or over four consecutive calendar quarters, you are required to register for GST/HST. This means that you’ll need to charge your guests GST/HST on the short-term rental, and remit it to the CRA.

GST/HST Registration and Remittance

It’s essential to understand the GST/HST registration process. If your short-term rental business meets the $30,000 threshold, you must register for a GST/HST account, collect GST/HST from your renters, and remit it to the CRA. The exact GST/HST rate that applies will depend on the province in which the property is located.

Keep in mind, once you are a GST/HST registrant, it’s not all about remitting taxes – you may also be able to claim Input Tax Credits (ITCs) for GST/HST paid on eligible business expenses.

Challenges and Gray Areas

Now, let’s move into some of the challenges and uncertainties surrounding GST/HST and short-term rentals.

Defining ‘Substantial’ in Short-Term Rentals

One of the complications is the definition of ‘substantial’ when considering the short-term rental service. To be subject to GST/HST, a short-term rental is generally considered one that is rented for periods of less than a month. However, if longer-term accommodations are your primary business, different tax rules might apply.

Private Residences vs. Exclusive Rental Properties

Another area of uncertainty lies in the differentiation between private residences rented out occasionally and properties exclusively for short-term rentals. If you’re occasionally renting out part or all of your primary residence, you might not be required to charge GST/HST, but the rules can be complex.

Platform Responsibility

Finally, there’s an emerging issue about the role of the rental platform (like Airbnb or VRBO) in GST/HST collection and remittance. While some platforms have agreements with the CRA to collect and remit GST/HST, not all platforms do, so understanding your responsibilities as a host is crucial.

Wrapping Up

The rise of the sharing economy has made short-term rental properties a popular investment. However, it’s crucial to understand the GST/HST implications to ensure you’re meeting all tax obligations.

Remember, every situation is unique. It’s always a good idea to seek professional advice tailored to your circumstances. For further insights, stay tuned to our ‘Special Tax Topics’ series.

Disclaimer: This blog post is intended to provide general information and does not constitute legal or tax advice. We strongly recommend consulting with a tax professional to understand your specific circumstances.


Schedule a call today with one of our team members to discuss your accounting or tax needs – For More Details, Click Here.


This blog is not meant to provide specific advice or opinions regarding the topic(s) discussed above. Should you have a question about your specific situation, please discuss it with your GBA advisor.

GBA LLP is a full-service accounting firm in the Greater Toronto Area, but we primarily service all of Ontario as well as the rest of Canada virtually, except Quebec. Our team of over 30, provides Audits and Reviews of financial statements, and Compilations of financial information, as well as corporate tax returns.  We provide specialized corporate tax and succession planning for small and medium businesses, in addition to general advisory services.

If you would like to schedule a call to discuss your accounting or tax needs with one of our team members, please complete the free no obligation meeting request on this page.

Connect With Us

Sign Up For Our Blog


NOTE: You can withdraw your consent at any time.