What taxes does a short-term vacation rental operator have to collect and remit?
Effective October 1, 2018, all short-term vacation rental operators in British Columbia are required to charge and remit PST (Provincial Sales Tax) and MRDT (Municipal and Regional District Tax) where applicable. Pemberton does not currently collect MRDT. See the Provincial Sales Tax Bulletin at https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/pst-120-accommodation.pdf for details.
What is the PST rate?
PST is currently set at 8% for accommodation.
What types of accommodation are exempt from PST?
Rental stays of 27 nights or longer are exempt from PST.
How does a short-term vacation rental operator register to collect PST?
Short-term vacation rental operators are required to register for a PST number at www.Etax.gov.bc.ca. Alternatively, short-term vacation rental operators may choose to list their rental properties with a rental management company that collects and remits the tax for them.
What happens to a short-term vacation rental operator who does not charge the tax?
The operator will be responsible for remitting the tax to the Province and will have to pay out of their own pocket if the tax is not collected from paying guests.