British Columbia issued a new Provincial Sales Tax (PST) notice to explain to accommodation providers, in the City of Vancouver, when to charge the increased rate in the Municipal and Regional District Tax (MRDT), which takes effect on September 1, 2015.
Generally speaking, if payment for accommodation is due and paid on or after September 1, 2015, MRDT at 3% will apply, whereas a payment due or paid before September 1, 2015 would attract a 2% MRDT. In some situations, the customer may be eligible for a refund of the difference in the tax rates.
More importantly, because of this change, taxpayers with quarterly, semi-annual or annual reporting periods may have a one-time change in their reporting periods. Where a reporting period straddles September 1, 2015, a separate filing would be required for the period before this date, and another return for the period starting September 1.