News and Insights

British Columbia Releases Notice to Accommodation Providers

Tax Development Jul 09, 2018

British Columbia has issued PST Notice 2018-004, “Notice to Accommodation Providers,” which outlines changes to how PST and municipal regional district tax (“MRDT”) apply to short-term accommodation sold in British Columbia.

As announced in the British Columbia 2018 budget, effective October 1, 2018, persons selling accommodation in British Columbia, are required to register to collect PST and MRDT unless they only sell exempt accommodation, or their accommodation is provided on an online platform that is registered for PST and MRDT. Furthermore, out-of-province online accommodation platforms may register to collect PST and MRDT on accommodation sold in British Columbia; however, any online platforms located in British Columbia will be required to register to collect both PST and MRDT. 

The definition of accommodation, effective October 1, 2018, will include lodging provided in residential dwellings used for a place to stay where it is listed on an online accommodation platform and stationary vehicles.

This notice also indicates that the exemption for accommodation provided by a person offering fewer than 4 units of accommodation will be eliminated and replaced with an exemption where the revenue earned in the previous 12 months from accommodation not listed on an online platform is under $2,500. Also, long-stay accommodation will become exempt where the continuous stay is 27 days or more rather than one month.