News and Insights

British Columbia Notice 2010-015

Tax Development Dec 07, 2010

The British Columbia Ministry of Finance has issued this notice to address questions that hotel operators have regarding the transition out of the hotel room tax.  Subject to the transition rules, as of July 1, 2010, accommodation supplied in the province is no longer subject to the Hotel Room Tax (HRT).  Accommodation in the province is now subject to HST at 12%.  In addition, operators in communities that have the Municipal and Regional District Tax (MRDT) are still required to collect and remit the MRDT.

Hotel operators are no longer required to pay PST on goods and services purchased for providing accommodation or to self-assess PST on goods brought into British Columbia for use in providing accommodation.  Hotel operators that are GST/HST registrants will collect and remit HST on taxable accommodation, but in turn, will generally be eligible to claim input tax credits for the HST paid on their business inputs.  

BC Notice 2010-015