Guide to completing the municipal and regional district tax (MRDT) return

This guide explains how to complete the Municipal and Regional District Tax (MRDT) Return (FIN 401) (PDF,1MB).

On this page

• Registered accommodation providers
• Provincial sales tax (PST) return for accommodation providers
• Completing the MRDT return worksheet
• Filing and paying

Registered accommodation providers

If you’re a registered accommodation provider located within a participating Municipal and Regional District (MRDT) area, you can file MRDT returns and pay MRDT online using eTaxBC, which is the easiest and fastest way to file your MRDT returns and pay your taxes. Learn how to enrol for access to eTaxBC.  

If you’re a registered accommodation provider located within a participating MRDT area, and you have not signed up for an online account, you’ll receive a paper MRDT return by mail at the end of each reporting period.

If you do not receive a MRDT return and it's getting close to when you need to file your return and pay MRDT, you can download and complete a blank Municipal and Regional District Tax Return (FIN 401) (PDF, 1MB). You can send the return and payment to us or take it to your nearest Service BC Centre.

If you offer accommodation in more than one participating MRDT area, you must file a separate paper return for each area. If you file your returns through eTaxBC, you may consolidate all your MRDT locations under one return and one payment. 

Your completed MRDT return and payment must be received on or before the last day of the month following the end of the reporting period.

You use the MRDT return to calculate and remit MRDT collected on your sales of accommodation during your reporting period. You must file an MRDT return even if you did not collect MRDT during the reporting period.

Note: Do not use your MRDT return to pay any other amounts owed to us, such as any amounts owing from an audit assessment or fees for a dishonoured cheque. In these cases, you will be sent a separate notice that includes payment instructions.

Provincial sales tax (PST) return 

If you're registered to collect PST on accommodation located within a participating MRDT area, you must file both an MRDT return and a Provincial Sales Tax Return (FIN 400) (PDF, 1 MB). 

This means you report PST on the PST return, and MRDT (and the Major Events MRDT, where applicable) on the MRDT return. While PST and MRDT must be reported on separate returns, you may remit a single payment to cover both returns. Learn more about reporting and paying PST. 

 Completing the MRDT tax return worksheet

Enter all amounts in Canadian dollars.

If you're using eTaxBC, and there is no MRDT collected, select Yes for Is this a NIL return?

Step 1

Box A – Total Accommodation Sales (excluding taxes)

Enter the total amount of all your taxable, non-taxable, and exempt accommodation sales for the period including:

• Accommodation sales you made as a designated party under a designation agreement in a principal and agent relationship
• Accommodation sales you made as an auctioneer acting as an agent in a principal and agent relationship

Do not include sales of accommodation you made through an online marketplace facilitator. In this case, the online marketplace facilitator must include those sales on its MRDT return. 

For more information, see Accommodation. 

Do not include any tax collected on these sales. 

Step 2

Box B – MRDT Collectable on Sales

Enter the total amount of MRDT collectable (either collected, or charged but not collected) on all taxable accommodation sales, including:

• MRDT collectable on accommodation you sold using methods other than through an online marketplace facilitator
• Any MRDT you may have collected in error. Your customer may be entitled to a refund or credit of MRDT they were incorrectly charged. If you refund or credit your customer after you remitted MRDT to us, you can claim an adjustment on your next MRDT return. See Box D for more information. 

Note: If you made accommodation sales through an online marketplace facilitator, the online marketplace facilitator must include MRDT collectable on accommodation in Box B of their MRDT return. For more information, see Bulletin PST 142, Online Marketplace Facilitators and Sellers, and Online Marketplace Services (PDF, 374 KB). 

MRDT returns are not eligible for commission.

Step 3

Adjustments

You must keep supporting documentation for any adjustments you claim. We may contact you to request documentation to verify the adjustment amounts claimed or they may be requested during an audit.

Box C – MRDT on Bad Debt Write-Off

Enter the MRDT amount remitted on accommodation sold on credit where the amount payable was later deemed uncollectable and written off as bad debt. 

You must claim this adjustment in the same reporting period that the amount payable was written off. Otherwise, you must apply for a refund within four years of the date the amount payable was written off. Learn more about bad debts in Bulletin CTB 001, Bad Debts (PDF, 231KB).

If you received partial payment prior to write-off, you calculate the amount of the adjustment using the following formula:

Adjustment amount = MRDT remitted X (amount unpaid ÷ total amount payable)

Bad debts recovered

If any amounts written off as bad debts are later recovered, you must remit those amounts using the following formula:

Amount to be added in Box B = MRDT remitted X (amount recovered ÷ total amount payable)

Box D – MRDT on Amounts Refunded or Credited to Customers

Enter the MRDT amount that you credited or refunded to your customers but have previously remitted to us. For example, MRDT you refunded to your customer because the duration of their stay was shorter than what they were originally billed for.  

You must claim this adjustment in the same reporting period that you credited or refunded your customer, or apply for a refund within four years of the date MRDT was refunded or credited to your customer.

Learn more about when you can refund or credit your customers MRDT in Bulletin PST 400, PST Refunds (PDF, 471 KB). 

Note: If a customer paid MRDT on accommodation that was occupied for a continuous period of 27 days or more (or a continuous period of more than one month if before October 1, 2018), the customer must apply to us for a refund. You may not issue a refund or credit to the customer and claim the amount as an adjustment unless the amount was charged in error at the time of payment.

Learn more about exempt sales of accommodation.

Box E – Total Adjustments

Enter the sum of amounts claimed in Box C and Box D. If you’re using eTaxBC. the amount in this box is calculated for you.

Step 4

Box F – Total Amount Due

Enter the total amount from Box B minus the amount from Box E. If you’re using eTaxBC, the amount in this box is calculated for you.

The amount in Box F is the amount of MRDT you owe. You must pay the full amount in Box F to avoid any interest or penalty charges. If the amount calculated is negative, a credit will be applied to your account.

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 Filing and paying

eTaxBC filers

Once you’ve completed the MRDT return worksheet, follow the instructions in eTaxBC to finish filing the return. You must pay your MRDT return on or before the due date to avoid any penalties and interest.  

Learn more about reporting and paying MRDT using eTaxBC.

Mandatory electronic filers

If you're a business with at least $1.5 million in total Canadian sales or leases per year, you're required to file your returns and remit MRDT online.

If you provide accommodation in Vancouver, you'll be required to report and remit the additional Major Events MRDT for any reporting periods on, or after, February 1, 2023, using your MRDT return. You'll be required to report both the additional Major Events MRDT and the MRDT on your MRDT return using eTaxBC. Paper returns will not be accepted. 

To file and remit MRDT returns electronically, use eTaxBC.

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Paper MRDT return filers

Front of remittance form

If your identification information is pre-printed on your MRDT return, check that all the information is correct. If any information is wrong, write the correction on the remittance form. If you’re completing a blank MRDT return, enter the information indicated below in the corresponding fields on the remittance form.

Legal Name of Business 

Business Number - enter your nine-digit business number. 

Registration Number - enter the PST number you were given when you registered to collect PST.

Due Date - if your reporting period is one or more months, your due date is the last day of the month after the end of your reporting period. For example, if you’re reporting for a period ending July 31, the due date for your MRDT return is August 31.

Businesses with accounting periods that don’t correspond to calendar months, such as businesses with 13-period fiscal years, that have requested PST reporting periods that match their accounting periods have a due date that’s 30 days after the last day of the reporting period. For example, if your reporting period ends on June 23, 2023, the PST return and payment are due no later than July 23, 2023.

Period Covered - enter the reporting period for the return you're filing. If you’re filing a revised return, enter the reporting period of the original return.

Amount Paid - enter the total amount of your payment enclosed.

Back of remittance form

Enter the amounts from the worksheet in the corresponding boxes on the remittance form. If you’re filing an amended MRDT return, make sure you check the “Amended” box on the remittance form is checked. 

Sign and complete the certification section and detach the completed remittance form. Keep the MRDT worksheet for your records.

Filing your paper MRDT return

To file your MRDT return, send us the completed remittance form along with full payment:

• By mail or courier, or
• In person at a government office. 

Learn more about your options to file and pay your MRDT return.

To avoid penalties and interest charges, MRDT returns and full payment must be received and dated on or before the due date by a financial institution, Service BC Centre or our office. If mailed, the MRDT return with full payment must be postmarked by Canada Post on or before the due date. Meter marks and non-Canadian postmarks are not used to determine if a return or payment is on time.

Fees apply to any dishonoured payments.