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Airbnb Pass-Through Taxes

Some Airbnb accounts have a custom tax configuration that Airbnb refers to as "pass-through taxes". Properties using pass-through taxes at Airbnb will need to configure their ThinkReservations account to handle these reservations properly. In addition, there are a few manual steps that will need to be followed each time a reservation comes in from Airbnb.

Have a Cleaning Fee? Click here to see how to add taxes.

The first thing that needs to be accounted for only applies if there is a cleaning fee in place in the Airbnb account in question. If so, there should already be a cleaning fee item in the corresponding ThinkReservations account. For these users, they will need to make sure that the Cleaning Fee item has taxes applied to it in ThinkReservations. This is in reference to the item specifically named "Cleaning Fee", as that is the only cleaning fee item that ThinkReservations is able to automatically recognize and add to an Airbnb reservation as it comes in. The steps below explain how to include tax within the Cleaning Fee item.

  1. Navigate to Settings > Items.

  2. Click Cleaning Fee.

  3. In the Taxes section, click to check the box for each applicable tax.

  4. Click Save.

Confirm taxes are included in your Airbnb rate type

Ensure that taxes are included in the rate type in ThinkReservations that controls Airbnb. You can confirm which rate type controls Airbnb by navigating to Settings > Airbnb. In the second column, the rate type for each imported Airbnb listing is displayed. The steps below explain how to ensure taxes are included in the rate type:

  1. Navigate to Settings > Rate Types.

  2. Click on the rate type in question.

  3. On the Details tab in the Taxes section be sure that Override Taxes is not checked. If it is checked click the check to clear the box.

  4. Click Save.

Create a Host Fee item

A host fee item will need to be created in ThinkReservations to represent the host fee Airbnb applies. When an Airbnb reservation comes in, the host fee item will need to be manually added to the reservation in an amount seen on the invoice found on Airbnb. The amount will need to be added in the negative. The item will have a default amount of $0.00. That works because it will need to be set differently for each reservation. The steps below explain how to create the item:

  1. Navigate to Settings > Items.

  2. Click New in the upper right.

  3. Name the item Host Fee.

  4. Set a price of $0.00

  5. This item will not be taxable, so leave the tax boxes unchecked.

  6. The revenue account will be Lodging Revenue.

  7. Click Save.


Add the Host Fee item to the reservation

To add the Host Fee item to an imported Airbnb reservation, please follow these steps:

  1. Open the Airbnb Reservation.

  2. Click Add above the charges on the bill.

  3. For the item, select Host Fee. (This is the item you created in the previous section above.)

  4. For the price field, enter the amount in the negative that is shown on the Airbnb invoice. This amount will be on Airbnb or in an email you get from Airbnb.

  5. Click Add.

Change the price of the room to match the sell rate

When an Airbnb reservation comes in, the room night price(s) will need to be changed to reflect the stay price on the Airbnb invoice. To change the room night price(s), follow these steps:

  1. Open the Airbnb reservation.

  2. Click anywhere in the room charge line to select it. It will then be highlighted in blue.

  3. Click Edit directly above the charges.

  4. Change the price to the stay price shown on the Airbnb invoice.

  5. Click Update.

  6. Repeat steps 1 - 5 for each room night charge on the bill.

Important: Please make sure that you have a process at your property to handle these Airbnb reservations. The above steps of adding the host fee and adjusting the room rate will need to be done manually for each Airbnb reservation.

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