Accommodation

 

This page explains how PST and MRDT (Municipal and Regional District Tax) apply to sales of accommodation in B.C.

For information on how to complete your PST and MRDT returns, see our guides Completing the Provincial Sales Tax Return and Completing the Municipal and Regional District Tax Return.

On this page

• PST and MRDT on accommodation
• Additional Major Events MRDT - City of Vancouver
• Taxable and exempt accommodation
• Registration
• Charging PST and MRDT
• Reporting and remitting PST and MRDT
• Exempt sales of accommodation
• Taxable value of accommodation provided with meals
• Taxable value of accommodation provided with meals and services
• Sales of PST taxable goods
• Residential energy products
• Online marketplace services
• Changes to accommodation areas or MRDT rate
• MRDT participating municipalities, regional districts and eligible entities

PST and MRDT on accommodation

8% PST on accommodation

PST of 8% applies to sales of short-term accommodation provided in B.C., unless a specific exemption applies.

Up to 3% MRDT on accommodation

In addition to the 8% PST, the up to 3% MRDT applies on behalf of municipalities, regional districts and eligible entities to sales of short-term accommodation provided in participating areas of B.C. MRDT applies in the same manner as the 8% PST on accommodation.

MRDT is charged in participating areas to raise revenue primarily for tourism marketing, programs and projects. If your area has recently started participating in the MRDT program, or has changed the MRDT rate that applies, see Changes to accommodation areas or MRDT rate.

Use our MRDT location map to find participating areas and their tax rates.

Note: The maximum MRDT rate is 3%. To increase the rate in their area, participating municipalities, regional districts and eligible entities must submit an application to Destination BC. A tax rate increase will only take effect after an application has been approved by regulation.

Additional Major Events MRDT - City of Vancouver

The Major Events MRDT is an additional temporary tax on accommodation to support communities that have expenses associated with hosting international major events. The tax applies to sales of short-term accommodation provided in the City of Vancouver, effective February 1, 2023 until January 31, 2030, at the rate of 2.5%.

The Major Events MRDT applies in addition to the 8% PST and 3% MRDT for the City of Vancouver, and applies in the same manner as the MRDT. Each tax must be listed separately on invoices.

The additional Major Events MRDT does not apply to exempt accommodation.

Like PST and MRDT, the additional Major Events MRDT is calculated on the purchase price of accommodation, which includes the total amount the purchaser pays for the right to use the accommodation, including any additional fees charged, such as:

• Administration
• Booking
• Cleaning
• Credit card processing
• Extra bed, cot or crib
• Extra linen
• Guest
• Pet
• Resort

The purchase price does not include the federal goods and services tax (GST).

Goods and Services Tax (GST) on accommodation in the City of Vancouver

The combined provincial tax on accommodation purchased in the City of Vancouver during the additional Major Events MRDT period exceeds 12%, so the PST, MRDT and the additional Major Events MRDT on that accommodation are subject to GST. For information on the application of GST to provincial taxes, see the Canada Revenue Agency's GST/HST memorandum Application of GST/HST to Other Taxes, Duties, and Fees.

Reporting and remitting Major Events MRDT

If you are registered to collect and remit PST and MRDT, you do not need to separately register for the additional Major Events MRDT.

If you provide accommodation in the City of Vancouver, report and remit the additional Major Events MRDT for any reporting periods on, or after, February 1, 2023, using your MRDT return. MRDT and the additional Major Events MRDT must be reported separately on your MRDT return. You must file your MRDT return using eTaxBC. Paper returns will not be accepted.

Transitional rules

If you provide accommodation in the City of Vancouver, you will be required to apply the additional Major Events MRDT if payment for the accommodation is due on, or after, February 1, 2023.

Example
You provide accommodation in the City of Vancouver from January 24, 2023 to February 3, 2023. Your customer pays for the entire accommodation on February 3, 2023, when checking out. All payment for the accommodation is made after February 1, 2023, therefore the additional Major Events MRDT applies to the entire duration of the accommodation.

Refunds of Major Events MRDT

Purchasers of accommodation provided in the City of Vancouver who overpay the additional Major Events MRDT (for example, paying the additional Major Events MRDT before it applied) can apply to us for a refund of the overpayment using the Application for Refund - General (PST) (FIN 355) (PDF, 280KB).

Note: Only refunds of $10 or more will be issued. 

Definitions

For the purpose of PST and MRDT:

Accommodation includes lodging provided in:

• Hotels, motels, resorts, boarding houses, rooming houses, and bed and breakfast establishments
• Lodging houses, bunkhouses, cabins, condominiums, dormitories, hostels, mobile homes and vacation homes
• Dwellings operated by clubs or associations, whether or not a membership is required for the use of the dwelling
• Ships and trains while the ship or train is not in transit or is not making a scheduled stopover in B.C.
• Stationary vehicles
• Residential dwellings (all or part)

A residential dwelling is:

• A house, cottage or another detached dwelling
• A duplex, apartment, condominium, townhouse
• A multi-use building that is used for residential use
• Land that is attributable to one of the above buildings

An online marketplace facilitator is a business that does all the following:

• Contracts with online marketplace sellers,
• Operates an online marketplace platform (e.g. a website or mobile app) to facilitate the purchase and retail sale, provision or lease of goods, software or services, including accommodation, between online marketplace sellers and online purchasers, and 
• Collects payments for these sales, provisions or leases, from the purchasers.

An online marketplace operated by an online marketplace facilitator is an online platform (e.g. website or mobile app) that allows third parties (online marketplace sellers) to sell goods, services and accommodation to online purchasers. 

Note: Online accommodation platforms are referred to as online marketplaces. Effective July 1, 2023, there are changes related to the collection obligations of online marketplace facilitators and the taxation of online marketplace services. For more information, see Bulletin PST 142, Online Marketplace Facilitators and Sellers, and Online Marketplace Services (PDF, 380KB).

Taxable accommodation

PST and MRDT (in participating areas) apply to sales of short-term accommodation provided in B.C., unless a specific exemption applies.

Exempt accommodation

PST and MRDT do not apply to accommodation provided:

• By a person who meets all the following criteria:
  • Does not list the accommodation on an online marketplace platform,
  • Has a gross revenue of less than $2,500 from the accommodation in the previous 12 months, and
  • Reasonably estimates a gross revenue of less than $2,500 in the next 12 months.
• If the charge for a unit of accommodation is $30 or less per day, or $210 or less per week (unless the accommodation is listed on an online marketplace platform)
• To the same person for a continuous period of 27 days or more (see Accommodation provided for a continuous period of 27 days or more)
• In industrial camps in certain situations (see Sales of accommodation in industrial camps)
• By a religious or charitable organization at a summer camp or similar place
• Without any of the following amenities: bed linen, electricity, indoor plumbing or heat. (Note: You're not providing heat if you only provide a wood-burning fireplace or wood‑burning stove.) If one or more of the listed amenities is provided, the accommodation is taxable
• In tents
• In hospitals, assisted living residences as defined in the Community Care and Assisted Living Act, and in long-term residential care facilities
• In a ship or train while the ship or train is in transit or is making a scheduled stopover in B.C.
• Without a bed in certain situations (see Rooms that do not contain a bed)

Accommodation is also exempt when purchased by:

• A First Nations individual or band on First Nations land (see Sales of accommodation to First Nations individuals and bands)
• The Government of Canada – exempt from PST only, not MRDT (see Sales to the provincial or federal governments)
• Members of the diplomatic or consular corps – exempt from PST and MRDT (see Sales of accommodation to members of the diplomatic or consular corps)

For more information, see Exempt sales of accommodation.

Units of accommodation

A unit of accommodation is the basic unit sold to your customer. For example, in a hotel or motel, a unit of accommodation is generally a room or suite. A unit of accommodation in a hostel or dormitory is generally a bed.

Time share agreements

If a time share agreement gives the purchaser or lessee an ownership or lease interest in the property that is registered or registrable at the Land Title Survey Authority of BC (LTSA), it is not subject to PST and MRDT.

If a time share agreement does not give the purchaser or lessee an ownership interest that is registered or registrable at the LTSA and no exemption applies (see Exempt accommodation), PST and MRDT apply to all amounts paid by the purchaser or lessee to use the accommodation. This means PST and MRDT apply to amounts paid at the time of purchase and payments made in the future, such as annual operating charges and extraordinary charges.

Registration

Accommodation providers

You must register to collect and remit PST and MRDT (if applicable) if you sell accommodation in B.C., unless you:

• Sell only exempt accommodation (see Exempt accommodation), or
• Only sell your accommodation through an online marketplace facilitator

If you sell your accommodation through an online marketplace facilitator and also list the accommodation using other methods, you must register to collect PST and MRDT.

You do not need to separately register for the MRDT. If you sell accommodation in an area that has an MRDT, your PST number will also be your MRDT number.

Note: Although you're not required to collect PST and MRDT if you only sell your accommodation through an online marketplace facilitator, you remain jointly and severally liable for any PST and MRDT not collected and remitted by the marketplace facilitator related to your accommodation. For more information, see Bulletin PST 142, Online Marketplace Facilitators and Sellers, and Online Marketplace Services (PDF, 380KB).

Online marketplace facilitators

If you're an online marketplace facilitator located in B.C. or outside B.C. and you facilitate the sale of accommodation located in B.C., you must register to collect and remit PST and MRDT on accommodation sold through your online marketplace platform, unless a specific exemption applies.

You're also required to charge and collect PST on certain online marketplace services you provide to online marketplace sellers who sell accommodation through your online marketplace platform.

Note: As an online marketplace facilitator you're not purchasing accommodation for resale and are not required to provide your PST number or other proof of registration to an online marketplace seller, for that purpose.  

For more information, see Bulletin PST 142, Online Marketplace Facilitators and Sellers, and Online Marketplace Services (PDF, 380KB).

If you register to collect PST and MRDT, you must report sales and tax collected separately for each area in which you sell accommodation where PST and MRDT apply.

How to register

You can apply to register with us using any of the following options:

• Online: Register online using eTaxBC (see Register to Collect PST)
• In Person: Register at your local Service BC Centre
• By Fax or Mail: Complete a paper Application for Registration for Provincial Sales Tax (FIN 418) (PDF, 420KB) and mail or fax it to us

Charging PST and MRDT

When PST and MRDT are payable

PST and MRDT are generally payable when the purchase price, or any portion of the purchase price, is paid or becomes due, whichever is earlier. The purchase price, or any portion of the purchase price, generally becomes due the earliest of:

• The day you first issue an invoice for the sale
• The date of the invoice
• The day you would have, but for undue delay, issued the invoice
• The day your customer must pay the purchase price under a written agreement

Note: Deposits are not subject to PST and MRDT until you apply the deposit towards the purchase price of the accommodation.

Calculating PST and MRDT

You calculate PST and MRDT on the total purchase price of the accommodation. Total purchase price means the total amount that a guest pays for the right to use the accommodation, including any additional fees charged, such as: 

• Administration
• Booking
• Cleaning
• Credit card processing
• Extra bed, cot or crib
• Extra linen
• Guest
• Pet
• Resort 

Note: Total purchase price does not include the goods and services tax (GST).

The 8% PST and the MRDT are not included in the purchase price for determining the amount of GST payable. This means you do not charge GST on either the PST or MRDT unless you are selling accommodation in the City of Vancouver, where the Major Events MRDT applies. For more information, see GST on accommodation in the City of Vancouver above. For questions on GST, contact the Canada Revenue Agency (CRA) at 1‑800-959-5525 or visit the CRA website.

You charge PST and MRDT at the time you sell the accommodation. The PST and MRDT apply whether or not your guest is a resident of B.C.

The PST and MRDT must appear as separate line items on all your invoices.

Regional destination marketing fees and similar charges

If your region charges a regional destination marketing fee or similar charge on sales of accommodation, this fee or charge is subject to both PST and MRDT.

Sales of accommodation to tourism agents

A tourism agent is a person who purchases accommodation and packages the accommodation as part of a tourism service they sell to their customers.

If you sell accommodation to a tourism agent or have an arrangement with a tourism agent to sell accommodation at your establishment, you charge PST and MRDT on the amount you bill the tourism agent for the accommodation. In this situation, the tourism agent is the taxable purchaser of the accommodation.

The tourism agent may add a mark-up to the amount charged to the customer but does not charge PST or MRDT on their invoices to the customer.

Discounts, coupons or reduced rates

If you accept coupons or provide discounts or reduced rates either to particular guests or as part of a general advertising campaign, you charge PST and MRDT as follows:

• If a third party (for example, a franchiser) reimburses you for the discount, you charge PST and MRDT on the full price of the accommodation before the reduction
• If a third party does not reimburse you for the discount, you charge PST and MRDT only on the consideration actually received from your guest (for example, the discounted or reduced rate)

Providing accommodation in exchange for services

If you provide accommodation to someone who is providing you with services, you're providing the accommodation as full or partial consideration for the purchase of the service. This means you must charge the service provider PST and MRDT on the accommodation provided.

Additionally, if the service you're receiving is a taxable related service, the service provider must charge you PST on the total consideration for the service, including the value of the accommodation provided. If the service provider does not charge you PST, you must self‑assess (pay directly to us) the PST due.

Room cancellation charges

If a guest makes a deposit to reserve a room and then cancels the reservation, you do not charge PST and MRDT on the deposit or cancellation charge because a sale of accommodation has not taken place.

Sales to the provincial or federal governments

You charge PST and MRDT on sales of accommodation to the Government of B.C. and its employees. 

You charge MRDT on sales of accommodation to the Government of Canada, all federal Crown Corporations and agencies and their employees.

You do not charge PST on sales of accommodation billed to the Government of Canada if the relevant department of the federal government supports its exemption claim with its PST registration number.

All federal government departments may claim the PST exemption. There are some federal boards, agencies and commissions that do not qualify and must pay PST. The federal entities that do not qualify are listed in Schedule I of the Federal-Provincial Fiscal Arrangements Act (Canada), and in Part I or Part II of Schedule III of the Financial Administration Act (Canada). If a federal entity is not listed on either of these schedules, they qualify for exemption.

The exemption does not extend to purchases by third parties, such as those by employees of either the federal government or an eligible federal entity.

For more information on sales to municipal governments, territories and First Nations governments, see Bulletin CTB 002, Sales and Leases to Governments (PDF, 221KB).

Reporting and remitting PST and MRDT

You must report and pay to us any PST and MRDT you charge, whether or not you have actually collected it from your customer. You must report the PST and MRDT on separate returns; however, you may remit a single payment to cover both returns.

For more information on how to report and pay PST and MRDT, including reporting periods, due dates and commission rates, see Reporting and Paying PST.

Exempt sales of accommodation

Sales of accommodation for resale

If you sell accommodation to a person who is purchasing the accommodation for resale (for example, another hotel purchases a room in your hotel for their guests' use when their own rooms are full), you can sell the accommodation exempt of PST and MRDT if the purchaser provides you with their PST number. If they do not have a PST number, they must provide you with a Certificate of Exemption – General (FIN 490) (PDF, 229KB). (Note: If you sell your accommodation through an online marketplace facilitator, the marketplace facilitator is not purchasing your accommodation for resale; they're facilitating your sale of accommodation through their online marketplace.)

If the purchaser uses accommodation they purchased for resale for their own use (for example, they allow an employee to use the room at no charge), PST and MRDT apply to the purchase price of the accommodation, and they must self-assess the PST and MRDT due.

Note: Tourism agents cannot purchase accommodation for resale exempt from PST and MRDT. For more information, see Sales of accommodation to tourism agents.

Accommodation provided for a continuous period of 27 days or more

You do not charge PST and MRDT if you provide accommodation for a continuous period of 27 days or more in the following situations.

• You provide the accommodation to an individual who is not a tourism agent and the unit is occupied for a continuous period of 27 days or more by:
  • The individual
  • Their employees
  • Members of the individual’s family, or
  • Members of the individual’s employees’ families
• You provide the accommodation to a tourism agent and the unit is occupied for a continuous period of 27 days or more by the same customer of the tourism agent
• You provide the accommodation to a person who is not an individual or a tourism agent (for example, to a corporation or society) and the unit is occupied for a continuous period of 27 days or more by:
  • Their employees, or
  • Members of the employees’ families

Providing the exemption

If you bill for a period of 27 days or more, you do not charge PST and MRDT at any time. However, if you bill for shorter periods, such as weekly or bi-weekly, or the guest pre-pays for less than 27 days of accommodation, you charge PST and MRDT. If the same guest occupies the accommodation for a period of 27 days or more, your guest may apply to us for a refund of the PST and MRDT already paid. You must not refund the PST and MRDT paid by the guest. Once the guest’s stay has exceeded 26 days, you do not charge PST and MRDT on the remainder of the stay.

For example, a guest books and pre-pays for a three week stay. You charge your guest PST and MRDT. At the end of the three weeks, your guest decides to stay for an additional two weeks. This makes their total stay more than 27 days. Your guest may be entitled to a refund of the PST and MRDT already paid, but they'll have to apply to us for this refund. You must not refund this tax to your guest. You do not charge your guest PST or MRDT for the additional two weeks of their stay.

Providing a fixed number of rooms to your customer

If a business or organization purchases a fixed number of rooms for their employees, all for a continuous period of 27 days or more, the same rules apply. However, if the number of rooms purchased varies, only the rooms continuously purchased for a period of 27 days or more are exempt from tax. For example, if an airline purchases 40 rooms, but only 30 are purchased continuously for a period of 27 days or more, you charge PST and MRDT on the 10 rooms not purchased for 27 days or more. You do not charge PST and MRDT on the 30 rooms purchased continuously for a period of 27 days or more.

Note: The exemption still applies if the employees switch rooms or use different rooms during the period. For example, a business purchases 30 rooms for a continuous period of 27 days or more from a hotel that has 100 rooms. For the purposes of the exemption, any of the hotel’s 100 rooms could be used on any given night during that period to fulfil their contract with the business.

Sales of accommodation in industrial camps

Industrial camps are generally located in remote areas and may provide lodging for workers.

PST and MRDT do not apply to sales of accommodation provided at an industrial camp if all the following criteria are met:

• The accommodation is provided to an employee of an employer or to another person engaged by the employer
• The accommodation is provided in a bunk house, trailer or other dwelling that is operated at an industrial camp
• The accommodation at the industrial camp is operated by or on behalf of the employer or under a contract with the employer
• The accommodation at the industrial camp is operated solely for the purpose of providing lodging substantially (over 90%) to the employees of the employer or to other persons engaged by the employer
• The accommodation is provided during periods when those employees or persons are performing work or services for the employer

If you operate an industrial camp and occasionally sell accommodation to backpackers, other travellers or government employees, you must charge PST and MRDT to these purchasers unless an exemption applies (for example, there are no amenities provided). For more information, see Exempt accommodation.

Sales of accommodation to employees

If you provide accommodation in premises normally operated by or on behalf of an employer to provide lodging to the employer’s employees, you do not charge PST or MRDT.

Accommodation provided at no charge

If you provide accommodation at no charge, you do not charge PST or MRDT.

Note: If you provide accommodation at no charge to someone performing a related service, you're providing the accommodation as partial consideration for the purchase of the service. This means you must charge PST and MRDT on the accommodation you provide and pay PST on the service you receive if it's a taxable related service. See Providing accommodation in exchange for services for details and examples.

Rooms that do not contain a bed

If you provide rooms that do not contain a bed (for example, to display merchandise, to entertain or to hold a meeting, dinner or reception), you're not selling accommodation and you do not charge PST and MRDT. This exemption does not apply when you provide:

• A room that does not contain a bed along with a connecting room or suite that does contain a bed, or
• A room that contains a hide-a-bed, cot or similar item that is available for use

Sales of accommodation to First Nations individuals and bands

You do not charge PST and MRDT on sales of accommodation to a First Nations individual or band if the accommodation is provided wholly on First Nations land.

For more information, see Bulletin PST 314, Exemptions for First Nations (PDF, 390KB).

Sales of accommodation to members of the diplomatic or consular corps

You do not charge PST and MRDT on sales of accommodation to persons who qualify as members of the diplomatic or consular corps.

For more information, see Bulletin CTB 007, Exemption for Members of the Diplomatic and Consular Corps (PDF, 188KB).

Taxable value of accommodation provided with meals

Accommodation provided with meals for a single price

In this section, meals do not include continental breakfasts or snacks.

If you sell accommodation for a single price that includes one or more meals per day (within a 24-hour period from check-in), you charge PST and MRDT as follows:

• If you sell accommodation for a single price that includes a meal or meals, but you also offer accommodation without meals, you charge PST and MRDT based on the purchase price at which you offer accommodation without the meals
• If you sell accommodation for a single price that includes one meal, and you do not offer accommodation without meals (the guest does not have a choice of paying for the meal), you charge PST and MRDT on the total purchase price
• If you sell accommodation for a single price that includes more than one meal, and you do not offer accommodation without meals (the guest does not have a choice of paying for the meals), you charge PST and MRDT on 60% of the total purchase price

Taxable value of accommodation provided with meals and services

You charge PST and MRDT as outlined below if you sell accommodation for an all‑inclusive price that includes meals and services.

All-Inclusive price if accommodation is also offered without meals and services

If you sell accommodation for an all-inclusive price that includes meals and services, but you also offer accommodation without meals and services, you charge PST and MRDT based on the purchase price at which you offer accommodation without the meals and services.

All-Inclusive price if accommodation is not offered without meals and services

If you sell accommodation for an all-inclusive price that includes meals and services, and you do not offer accommodation without meals and services (you only sell all-inclusive packages), you charge PST and MRDT on the taxable value of the accommodation, which is the lesser of:

• 15% of the all-inclusive price
• $100 per day
   

Note: If the taxable value of the accommodation is $30 or less per day, as calculated above, the accommodation may qualify for the exemption for accommodation sold for $30 or less (see Exempt accommodation).

Sales of PST taxable goods

Accommodation providers who sell taxable goods must charge PST on those goods. This includes toiletries, towels, robes, souvenirs and liquor sales. This also includes sales of goods outside the ordinary course of business, including sales of business assets, such as office equipment and furniture. The tax rate on liquor is 10% while the general PST rate on other taxable goods is 7%. For more information, see the Small Business Guide to PST.

Exception – goods provided with accommodation

You do not charge your customers PST on goods you provide as part of a purchase of accommodation if:

• The main purpose of your contract is for accommodation and not for the goods
• There is no separate charge for the goods, and
• The total price for the accommodation including the goods is the same or only marginally different from the price you would have charged if the goods were not provided

For example, you do not charge PST on soap, shampoo, lotion, sewing kits, shower caps, tissue, pens, paper, disposable cups and other items you provide to your guests as part of the accommodation if the criteria listed above are met.

You also do not charge your customers PST on goods you allow your customer to use as part of a purchase of accommodation if there is no separate price for the right to use the goods, such as towels, robes, coffee machines, ceramic mugs and glassware.

As the accommodation provider, you must pay PST on these goods.

Internet access, long-distance telephone calls and in‑room movies

You do not charge PST on charges for telecommunication services (for example, internet access, long-distance telephone service or in-room movies provided in an intangible format, such as pay‑per‑view) you provide in relation to a sale of accommodation. However, you pay PST when you purchase these services from your provider, unless a specific exemption applies. For more information, see Bulletin PST 107, Telecommunication Services (PDF, 441KB).

You charge 7% PST on these charges if they're not provided in relation to a sale of accommodation (for example, they're provided to a customer who is using a room to display merchandise or to entertain or hold a meeting, dinner or reception). You also charge 7% PST if you lease movies to your customers in a tangible format (for example, on a DVD) or you charge your customers a fee to play video games.

Residential energy products

Residential energy products obtained for residential use in a residential dwelling are exempt from PST. Residential energy products are:

• Butane
• Electricity
• Heat, including transferred energy that results in cooling
• Heating oil that is coloured within the meaning of section 16.1 of the Motor Fuel Tax Act
• Kerosene
• Methanol
• Naphtha
• Natural gas
• Steam

However, residential energy products obtained for non-residential use (for example, business or commercial use such as providing short-term accommodation) are subject to 7% PST.

Note: Electricity is fully exempt from PST for both residential and non-residential use.

Some accommodation providers offer accommodation in a multi-use building that is used for both residential and non-residential purposes (for example, a bed and breakfast). The residential use part of the building does not include those parts containing the accommodation units, common areas used mostly by your guest, and areas of the building you use as an office for the business.

You're exempt from PST on residential energy products obtained solely for residential use if the following criteria are met:

• The residential energy product is delivered or provided to a residential dwelling, a multi-use building that contains a residential dwelling, or a storage tank or facility that is located at and connected to a residential dwelling
• In the case of a delivery or provision of an energy product to a residential dwelling that is part of a multi-use building, the residential energy product is delivered or provided to a storage tank or facility, or through a meter, that services only the part of the building that is used only for residential use

You pay PST when you obtain residential energy products for a multi-use building if the residential use portion is not separately metered or the energy product is not delivered to a separate storage tank or facility. However, you may apply for a refund of the PST paid on the portion of the residential energy product that can reasonably be attributed to residential use in a residential dwelling.

For more information, see Bulletin PST 203, Energy, Energy Conservation and the ICE Fund Tax (PDF, 371KB).

Online marketplace services

If you sell your accommodation through an online marketplace facilitator, you must pay PST at the rate of 7% on online marketplace services provided or to be provided to you by the marketplace facilitator (or their agent, partner, joint venturer or associated corporation). This includes services such as listing, advertising or promoting your accommodation, providing customer service for your guests, and collecting or facilitating payments.

For more information, see Bulletin PST 142, Online Marketplace Facilitators and Sellers, and Online Marketplace Services (PDF, 380KB).

Changes to accommodation areas or MRDT rate

The following explains how MRDT applies when your customer’s stay straddles changes to MRDT in your area. This includes when your area starts or stops participating in the MRDT program, or when your area increases the MRDT rate.

Area starts participating in MRDT program

You must charge MRDT on accommodation if:

• Payment for the accommodation is due on or after the day the area becomes an MRDT participating area, and
• Your customer pays for their stay on or after the day the area becomes an MRDT participating area, even if your customer stays before the area becomes an MRDT participating area
   

MRDT rate increase

Payment due and paid on or after date of increase

You must charge the increased MRDT rate on accommodation if:

• Payment for the accommodation is due on or after the day the area increases its MRDT rate, and
• Your customer pays for their stay on or after the day the area increases its MRDT rate, even if your customer stays before the area increases its MRDT rate
   

Payment due or paid before date of increase

You must charge the lower MRDT rate on accommodation if:

• Payment for the accommodation is due before the day the area increases its MRDT rate, or
• Your customer pays for their stay before the day the area increases its MRDT rate, even if your customer stays after the area increases its MRDT rate
   

Reporting and remitting MRDT

If you have a quarterly, semi-annual or annual reporting period, you may be subject to a one‑time change in your reporting period as a result of an MRDT increase. If you have a reporting period that starts before and ends after the date the area increases its MRDT rate, you must file separate PST and MRDT returns for:

• The portion of the period before the date the area increases its MRDT rate, and
• The portion of the period on and after the date the area increases its MRDT rate
   

Area stops participating in MRDT program

You do not charge MRDT on accommodation if:

• Payment for the accommodation is due on or after the day the area stops being an MRDT participating area, and
• Your customer pays for their stay on or after the day the area stops being an MRDT participating area, even if your customer stays before the area stops being an MRDT participating area

You charge MRDT on accommodation if your customer pays for their stay before the day the area stops being an MRDT participating area, even if your customer stays after the area stops being an MRDT participating area.

Refunds

To apply for one of the refunds described below, complete an Application for Refund – General (FIN 355) (PDF, 280KB) and provide the supporting documentation listed in the instructions to the form.

We cannot issue a refund of less than $10.

MRDT paid in newly designated accommodation area

A purchaser of accommodation may be eligible for a refund of the MRDT paid if, before the area became a designated accommodation area, the purchaser:

• Received a written confirmation of the reservation
• Entered into a written contract for the purchase of the accommodation, or
• Made a deposit on the purchase

To qualify for a refund, the purchase of the accommodation must have been for a specified number of days as set out in the confirmation or contract, or as covered by the deposit.

The refund is limited to the MRDT paid on the purchase price of the accommodation for each of the specified number of days of accommodation that are set out in the confirmation, contract or covered by the deposit.

MRDT paid due to rate increase

If a purchaser paid MRDT on accommodation in an area that increased its MRDT rate, the purchaser may be eligible for a refund of some of the MRDT paid if, before the area increased its MRDT rate, the purchaser:

• Received a written confirmation of the reservation
• Entered into a written contract for the purchase of the accommodation, or
• Made a deposit on the purchase

To qualify for a refund, the purchase of the accommodation must have been for a specified number of days as set out in the confirmation or contract, or as covered by the deposit.

The refund is limited to the difference between the MRDT the purchaser paid and the MRDT the purchaser would have paid if the MRDT rate had not increased.

MRDT participating municipalities, regional districts and eligible entities

To find participating MRDT areas and their tax rates, use our MRDT location map.

Participate in the MRDT program or request a rate change

A municipality, regional district or eligible entity in B.C. wishing to implement, renew or request a rate change to the MRDT must submit applications and renewal applications to Destination BC. For more information, contact MRDT@destinationbc.ca