Am I required to collect Sales and Use Tax for my bookings or add-ons?
With updates to tax laws in certain states that are relevant for Peerspace and its hosts, we collect and remit sales and use tax on behalf of hosts.
As of July 1, Peerspace has added Sales and Use Tax at the time that payment is processed to all bookings in Florida and some counties in Arizona, and applicable add-ons only in Arkansas, Arizona (outside of the counties listed above), California, Colorado, District of Columbia, Georgia, Illinois, Massachusetts, Maryland, Michigan, Minnesota, North Carolina, New Jersey, Nevada, New York, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington.
As a result, if your space is located in Florida, or in Coconino, Gila, Maricopa, Pima, or Pinal counties in Arizona, you no longer need to collect taxes on bookings or applicable add-ons.
If your space is located in Arkansas, Arizona (outside of the counties listed above), California, Colorado, District of Columbia, Georgia, Illinois, Massachusetts, Maryland, Michigan, Minnesota, North Carolina, New Jersey, Nevada, New York, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington, you no longer need to collect taxes on applicable add-ons only.
We have partnered with Avalara, a leading tax software compliance platform, to calculate and assign the appropriate taxes to each transaction. Please refrain from adding sales and use tax manually to prevent double taxation.
Does this apply to me if I’m located outside of the states listed above?
If your booked space is located outside the states listed above, Peerspace does not collect sales and use tax in that state. While we do our best to assist our community with questions, we cannot provide legal or tax guidance and require that hosts understand and comply with their Local and Federal Income Tax requirements.
Will sales and use tax be collected from my guest when they purchase their booking?
Yes. Sales and use tax will be captured for guests for their bookings and applicable add-ons in Florida and the following counties in Arizona: Coconino, Gila, Maricopa, Pima, and Pinal. It is also collected for applicable add-ons only in the following states: Arkansas, Arizona (outside of counties listed above), California, Colorado, District of Columbia, Georgia, Illinois, Massachusetts, Maryland, Michigan, Minnesota, North Carolina, New Jersey, Nevada, New York, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington at the time that payment is processed.
Should I be including sales and use tax as an add-on?
Not if you are located in one of the states listed above. If you have a space located in Arkansas, Arizona, California, Colorado, District of Columbia, Florida, Georgia, Illinois, Massachusetts, Maryland, Michigan, Minnesota, North Carolina, New Jersey, Nevada, New York, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, it will be noted as a line item on the booking invoice/receipt if any portion of your booking is subject to sales and use tax, and should not be included as an add-on charge. Please note that including Sales and Use Tax as an add-on tax for these states may result in double-taxing.
Should I be adding sales and use tax for Third party sales?
If sales and use tax was charged by a 3rd party and is included on the 3rd party invoice, then it should not be added again as an additional charge. For example, if a catering company that you offer as an add-ons collects sales and use tax on their invoice, you should not include that tax a second time.
It is the host's responsibility to understand their Local and Federal Income Tax requirements. If you have additional questions not covered above, please reach out to us here.