Tax Obligations for Airbnb and Short-Term Rental Hosts in Quebec: GST/QST Rules, Income Reporting, and Deductible Expenses — CPA Firm Near You, Montreal

Introduction

Short-term rentals through Airbnb, Vrbo, Booking.com, and other platforms have surged in Quebec, creating significant tax obligations for property owners. Many hosts misunderstand GST/QST rules, overlook taxable income, or fail to document expenses, resulting in costly reassessments. This guide explains how short-term rental hosts must report income, how GST/QST applies, which expenses are deductible, and how a CPA firm near you in Montreal can help ensure full compliance and maximize tax savings.

Legal and Regulatory Framework

Under the Income Tax Act and the Taxation Act of Quebec, all revenue from short-term rentals must be reported as business or property income. Rentals of less than 30 days are generally considered commercial activity for GST/QST purposes, requiring registration once annual revenues exceed the small-supplier threshold. Platforms such as Airbnb may collect some taxes automatically, but hosts are still responsible for proper reporting and remittance. Deductible expenses include mortgage interest, property taxes, utilities, insurance, cleaning, repairs, furnishings, supplies, platform fees, and depreciation through capital cost allowance. Quebec’s tourist accommodation regulations also require hosts to obtain a CITQ registration number for legal operation.

Key Court Decisions

Courts have ruled that short-term rental income is fully taxable and cannot be treated as exempt residential rent. Judges have denied deductions where hosts mixed personal-use expenses with rental expenses or lacked evidence of repairs, furnishings, or renovations. Cases involving GST/QST reassessments confirm that hosts must collect and remit taxes when required, even if the platform handled part of the remittance. Documentation such as invoices, platform statements, and CITQ registration is critical for compliance.

Why CRA and Revenu Québec Target Short-Term Rentals

Short-term rental hosts are frequently audited because platforms provide payout data directly to tax authorities. Auditors compare declared income with platform statements, bank deposits, and listing calendars. Hosts who exceed the GST/QST threshold without registering are immediately flagged. Deductions for cleaning, supplies, repairs, and furnishings are scrutinized because personal-use and rental-use areas often overlap. Missing receipts, informal bookings, and cash payments increase audit risk.

Mackisen Strategy

At Mackisen CPA Montreal, we help Airbnb and short-term rental hosts build a compliant tax and accounting system. We determine whether GST/QST registration is required, calculate taxable revenue accurately, and set up proper invoicing workflows. We optimize deductions for mortgage interest, utilities, repairs, furnishings, depreciation, and cleaning costs. Our team ensures proper allocation between personal and rental use and manages capital cost allowance schedules. If a host faces an audit, we defend deductions, reconstruct missing documentation, and negotiate with CRA and Revenu Québec to minimize reassessments.

Real Client Experience

A Montreal host rented out two units on Airbnb but underreported income and did not register for GST/QST despite exceeding the threshold. Revenu Québec began a QST review. We recalculated taxable revenue, corrected filings, established a compliant invoicing model, and negotiated a payment plan that reduced penalties. Another host had no documentation for furnishings and renovations; we rebuilt expense records and recovered significant allowable deductions.

Common Questions

Are Airbnb rentals taxable?

Yes. Short-term rentals less than 30 days are taxable for income tax and GST/QST once thresholds are met.

Do Airbnb hosts need to register for GST/QST?

Yes, once annual taxable revenues exceed the small-supplier threshold.

What expenses can hosts deduct?

Mortgage interest, insurance, utilities, cleaning, furnishings, supplies, platform fees, repairs, and renovations may be deductible with proper documentation.

Does Airbnb remit GST/QST for hosts?

Airbnb may remit some taxes, but hosts are still responsible for accurate reporting and compliance.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps businesses stay compliant while recovering the taxes they’re entitled to. Whether you’re filing your first GST/QST return or optimizing multi-year refunds, our expert team ensures precision, transparency, and protection from audit risk.