Taxpayers are reminded that effective April 1, 2021, the Alberta Tourism Levy applies to short-term rentals purchased through online marketplaces. Alberta has released a transitional rule, under which the levy does not apply to the purchase of a short-term rental booked through an online marketplace prior to April 1, 2021. However, reservations for all short-term rentals made on or after April 1, 2021 will be subject to the levy, unless the rental qualifies for exemption. Note that the transitional rule for supplies of short-term rentals through online marketplaces is based on the booking date, rather than the reservation date (i.e., when the accommodation will be used).
The province recently released and/or updated several publications regarding other changes to the Alberta Tourism Levy introduced in this year’s budget, including the:
- ability of online marketplace suppliers of short-term rental properties to register for and collect the levy;
- elimination of the previous exemption for short-term rentals with less than four bedrooms; and
- introduction of an exemption for short-term rental properties not listed with an online marketplace and with annual gross revenues under $5,000, or a rental rate less than $30 per day or $210 per week.
Further details regarding these changes, which took effect on April 1, 2021, may be found in the following publications:
- Special Notice, Vol. 7, No. 13, Transitional Rule for Tourism Levy on Accommodation Purchased Through an Online Marketplace
- Special Notice, Vol. 7, No. 12, Providing Accommodation Through an Online Broker
- Information Circular TL-2R6, Information for Operators and Online Brokers