pay your taxes
GENERAL EXCISE TAX (GET) AND TRANSIENT ACCOMMODATIONS TAX (TAT)
When you are hiring Great Vacation Retreats (GVR) midyear, all previous tax information during the current calendar year needs to be provided to GVR. GVR will need also need your online login and password for https://hitax.hawaii.gov/
GVR submits the GET and TAT taxes to the state on a monthly basis on your behalf at no additional charge to you.
GVR collects the taxes from the guest and pays them to the State so it is an in and out charge. You will receive a summary of taxes paid at the end of each year to provide to your accountant.
The general excise tax, commonly called the “GET,” is a tax imposed on business activity in the State of Hawaii. This tax is often called a “gross income tax” because the tax is computed based on the business’ total gross income derived from doing business in Hawaii and not on the business’ net profit. Gross income includes any cost passed on to the customer and represented to be the general excise tax, but does not include any cost visibly passed on to a guest or tenant and represented to be the transient accommodations tax. The State of Hawaii adds the tax to the revenue to figure the tax. You will notice on GVR’s reporting that there is a difference of income reported on the GET statements and this is the reason. The GET is currently 4.5% calculated at $4.712 (you pay tax on tax in this State).
The table on this site, item #5, explains how to pass the GET to the consumer.
The transient accommodations tax, commonly called the “TAT,” is a tax on certain rental activity in the State of Hawaii. It is imposed on gross rental income derived from the furnishing (i.e. the providing or renting) of transient accommodations in Hawaii. Gross rental income does not include any cost visibly passed on to the guest or tenant and represented to be the general excise tax and the transient accommodations tax. The TAT is currently 10.25%.
The total amount of tax passed onto the consumer is 14.962%. This is standard for all vacation rental homes in Hawaii.
There is a one-time fee of $25 payable to the State to set up GET and TAT accounts. We can process this paperwork for you.