As of October 1, 2018, if you own a rental property in B.C. that is currently rented out on a short-term basis (less than one month at a time) you are now required to collect and remit additional taxes on the fees you charge your customers.
Unless certain exemptions apply (see below), all short-term rentals will be subject to:
Provincial Sales Tax (PST) at a rate of 8% on the fee charged, as well as
Municipal and Regional District Tax (MRDT) at a rate of up to 3%
You will be required to charge the additional 8% PST and 3% MRDT to your customers, collect the taxes, register with the Provincial government, file a PST Return and a MRDT return each year, and pay the taxes owing.
Filing your PST and MRDT returns
The easiest way to file both your PST and MRDT returns is to register with the government through eTaxBC. After registering through eTaxBC you will be able to file your PST and MRDT returns electronically.
The information contained in this article is for general use only and should not be viewed as professional advice. Accounting and tax rules and regulations regularly change and individuals should contact a competent professional to obtain accounting and tax advice based on their specific situation.
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