The Guam Visitors Bureau and Airbnb organized a BNB E-commerce workshop Thursday at the Guam Museum and partnered up with the Department of Revenue and Taxation to discuss the do’s and don’ts of bed and breakfast establishments on the island.
The conversation on the future of tourism continues with a workshop hosted by GVB at the Guam Museum. GVB invited Department of Revenue and Taxation’s Tax Enforcement Team and Airbnb to speak at their BNB E-Commerce workshop.
The rise of bed and breakfast establishments on the island grew quickly, especially with the help of online lodging booking giant Airbnb.
Airbnb provides access on its platform to over six million places to stay in more than 100,000 cities and 191 countries and regions, including Guam.
The company was founded in 2008 as an online marketplace that leverages technology to help economically empower millions of people around the world to become hospitality entrepreneurs.
However, in order to make sure that these establishments prosper on the island, the Department of Revenue and Taxation was invited to teach them how to be compliant with taxes.
Under the Business Privilege Tax, also known as Gross Receipts Tax or (GRT), vacation rentals in Guam are required to collect local lodging taxes from guests.
The current effective rate for such facilities is 11%, with the exception for bed and breakfast, which is 4%. In efforts to boost their tax collection efforts, the Department of Revenue and Taxation will be avidly enforcing the laws on bed-and-breakfast and short-term vacation rental.