Municipal Regional District Tax (MRDT) Program – IMPORTANT UPDATE Effective October 1, 2018
In Budget 2018 the BC Government made several announcements that effect current program guidelines and requirements for the Municipal Regional District Tax (MRDT).
Effective October 1, 2018 all short-term accommodation in BC will be required to register to collect the provincial sales tax (8% PST) and (2% MRDT). This includes lodging provided in residential dwellings with three rooms or less, such as boarding/rooming houses; bed and breakfast establishments; lodging houses; condos; mobile homes and trailers.
Online accommodation booking platforms located both within and outside of BC (i.e. Airbnb) are required to register to collect PST and MRDT on behalf of accommodations sold using their platform. The additional MRDT revenues are now eligible to be used towards affordable housing initiatives.
The decision was made as part of the Province’s mandate to address the issue of affordable housing, which has been an ongoing problem province-wide, and includes staff housing shortages in the tourism industry.
For detailed information on the MRDT program and the upcoming changes please visit the Destination BC website and read the BC Government's PST bulletin: https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/notice-2018-004-pst-mrdt-accommodaton-providers.pdf
Questions? Further Information Online: gov.bc.ca/pst
Toll free: 1 877 388-4440
Email: CTBTaxQuestions@gov.bc.ca
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