Listing Platform Tax Collection Changes

As you may recall, the State Legislature passed a bill in June with some implications for short term rentals. One of its impacts is a mandate for listing platforms (such as Airbnb and Vrbo) to facilitate the collection and remittance of applicable taxes.

WHAT’S CHANGED?

As of October 1, 2020, Airbnb is now collecting and remitting sales and use taxes for all listings in Tennessee. They were already doing this for the majority of local hosts, so for many hosts, nothing is changing here. Those set up as professional hosts or API integrated have likely been facilitating taxes on their own. Since October 1, 2020, Airbnb is responsible for handling this on behalf of all Tennessee listings, including those hosted by professional hosts.

Vrbo is also now facilitating the collection and remittance of the sales and use taxes for those hosts who utilize Vrbo as their payment processor. (Standard hosts.) As of now, Vrbo has not changed the setup for anyone established to collect their own payments (as their own merchant of record).

All hosts are still responsible for the collection and remittance of hotel occupancy taxes. Find more details on how to submit these in the Tax section of our FAQs »

WHAT ELSE IS CHANGING?

By January 1, 2021, listing platforms will begin collecting and remitting the hotel occupancy taxes as well. Between now and then, however, hosts are still responsible for doing so.

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