When considering listing your RV, it’s important to understand the local tax regulations in your area. Reach out to a local tax specialist to understand how taxes will affect your business.
It is important to distinguish between the two types of taxes involved in renting out your RV; income tax based on your earnings and sales tax based on your jurisdiction. RVs rented on RVshare (US) could be subject to both.
Income tax may or may not apply to your annual earnings from RVshare. We recommend consulting with a tax professional to understand the tax implications of renting out your RV.
In what scenario will I receive a 1099-K from RVshare regarding my earnings on the platform?
Update 1/10/2023: For the tax year 2022, you will only receive a 1099-K from us if you earn over $20,000 and complete over 200 transactions. Starting in the tax year 2023, you will receive a 1099-K from us if you earn over $600 which will be delivered in early 2024 for your 2023 taxes.
What if I didn’t earn $20,000 and complete over 200 transactions?
We recommend you consult with your tax professional regarding the treatment of your taxes on RVshare-related earnings. Here’s a quick Help article with some more information.
Taxes commonly referred to as sales tax may or may not be imposed in your area. We recommend consulting with a tax professional to understand the tax implications of renting out your RV.
Does RVshare collect sales tax on my behalf?
That is dependent on the jurisdiction. Where it is required for RVshare to collect and remit, we will do so.
What jurisdictions does RVshare collect and remit taxes?
For more information on the areas RVshare is currently collecting sales tax on behalf of owners, check this out. You may be responsible for calculating and remitting certain taxes if your jurisdiction isn’t listed above.
What happens if it is not required for RVshare to collect and remit taxes on my behalf?
In jurisdictions where RVshare is not required to collect tax on your behalf, you’ll be able to set your own tax rate — and choose whether or not to collect taxes at all as part of your rental fee. We recommend consulting with a tax specialist to determine the appropriate rates and whether you are required to collect tax on your rentals.
This is ever-changing so it’s essential to keep up-to-date with what the tax requirements are in your area.
For more information on where RVshare collects and remits tax, check this out.
Why is RVshare required to collect taxes?
As a general matter, taxing authorities have introduced laws that require “marketplace facilitators” and similar intermediaries to collect and remit tax on behalf of sellers making sales through an online platform. For these laws, “marketplace” refers to a platform where buyers and sellers find each other to buy and sell goods or services. RVshare is considered a “marketplace” or similar intermediary under some of these laws.
These laws change how tax on your rental transactions is handled on the RVshare platform. In some cases, instead of you collecting tax, RVshare is now required to calculate, collect, and remit taxes and/or fees on the taxable amount charged to the Renter unless you’re exempt from sales tax.