DISCLAIMER: Please note, this is not a legally approved document. We are outlining what our customers are doing in Canada when it comes to the Tax requirements. They may be using Mews to achieve some of it and some third-party services to get to some of the remaining requirements.

Sales Tax

Canada has 2 sales tax levels, GST (Government Sales Tax) & PST (Provincial Sales Tax). In some provinces, the GST & PST, combined into one sales tax called the HST (Harmonized Sales Tax). In Mews, we show each tax separately for the State & Provincial levels. We also use different names for these taxes.

MRDT taxes

‌MRDT (Municipal and Regional District Tax) are local taxes applied to accommodation and products by District or Municipal law.

MAT taxes

‌MAT (Municipal Accommodation Tax) are local taxes applied to accommodation and by Provincial, District, or Municipal law. These taxes are common in locations where tourism is a major contributor to local revenue and they rarely apply to products.

Alcohol and restaurant taxes

Some cities legally require taxes on alcohol, food & beverage, or entertainment. These taxes usually apply only to products, but some Provinces apply them to accommodation instead of or in additional to an occupancy tax.

Tax exemptions

Transient (long-stay) exemption

Most taxes on accommodation apply only to "transients". This is so these taxes are applied only to guests, not renters. The most common exemption is stays over 29-31 nights. When the exemption applies, the entire reservation becomes tax exempt in most provinces. Taxes are automatically removed from the reservation when it exceeds the long stay exemption. Taxes aren't automatically removed in legal environments where a signed rental agreement (lease) is needed.

Threshold (nightly rate) exemption

Reservations with a low nightly rate are tax exempt in some legal environments. In these cases, the reservation is automatically tax exempt in Mews.

In some legal environments, reservations with a high total cost, e.g. $5,000, are also tax exempt. This is not automated in Mews.

Government & non-profit exemption

Almost all Canadian provinces provide taxes exemptions for specific types of guests. This is usually government officials, diplomats, non-profit (charity) organizations, schools/universities, and First Nations guests traveling for work. None of these exemptions are automated in Mews.

Packages

The Canada Revenue Agency has specific advice and tax calculation for packages and conferences. This is not supported in Mews today.

Canadian provinces

Alberta

We have no legal environments in Alberta currently. If you would like to Operate with Mews in Alberta, please have fill out the Legal Environment Request form and our team will reach out to you.


British Columbia

Tax name

Tax rate

Applies to

Exemptions

Government references

Canada sales tax

0%

Products

None

Canada Revenue Agency GST/HST Information for the Travel and Convention Industry

Canada sales tax

5%

Products, Accommodation, Cancellation, No show

Stay over 31 days, entire stay is tax exempt

Canada Revenue Agency GST/HST Information for the Travel and Convention Industry

British Columbia sales tax

7%

Products

None

Restaurants and Liquor Sellers Provincial Sales Tax Act, Government of British Columbia Accommodation PST Act

British Columbia sales tax

8%

Products, Accommodation

Stay over 27 days, entire state is tax exempt

Government of British Columbia Accommodation PST Act

British Columbia sales tax

10%

Liquor products

None

Restaurants and Liquor Sellers Provincial Sales Tax Act

British Columbia MRDT

2%, 3%

Products, Accommodation

Stay over 27 days, entire stay is tax exempt

Government of British Columbia Accommodation PST Act

Additional info

British Columbia MRDT - Government of British Columbia Accommodation PST Act

  • If the rate changes or a municipality stops or starts using MRDT, there are very specific rules for all reservations & bills after the rate is changed. Please read pages 14-16 of the Government of British Columbia Accommodation PST Act

  • Set by the municipality (city or town).

  • Tax rate can change annually.

Exemptions

These exemptions aren't automated in Mews. Properties must handle them manually.

Service charge

  • 18% of total cost is applied when the staff do something for the guest. (This is up to the property, not Mews.)

  • Not a legal requirement from the Federal, Provincial or Municipal governments.


Columbia

We have no legal environments in Columbia currently. If you would like to Operate with Mews in Columbia, please have fill out the Legal Environment Request form and our team will reach out to you.



Manitoba

We have no legal environments in Manitoba currently. If you would like to Operate with Mews in Manitoba, please have fill out the Legal Environment Request form and our team will reach out to you.


New Brunswick

We have no legal environments in New Brunswick currently. If you would like to Operate with Mews in New Brunswick, please have fill out the Legal Environment Request form and our team will reach out to you.


Newfoundland and Labrador

We have no legal environments in Newfoundland and Labrador currently. If you would like to Operate with Mews in Newfoundland and Labrador, please have fill out the Legal Environment Request form and our team will reach out to you.


Northwest Territories

We have no legal environments in Northwest Territories currently. If you would like to Operate with Mews in Northwest Territories, please have fill out the Legal Environment Request form and our team will reach out to you.


Nova Scotia

We have no legal environments in Nova Scotia currently. If you would like to Operate with Mews in Nova Scotia, please have fill out the Legal Environment Request form and our team will reach out to you.


Nunavut

We have no legal environments in Nunavut currently. If you would like to Operate with Mews in Nunavut, please have fill out the Legal Environment Request form and our team will reach out to you.


Ontario

Tax name

Tax rate

Applies to

Exemptions

Government references

Canada sales tax

0%

Products

None

Canada Revenue Agency GST/HST Information for the Travel and Convention Industry

Canada sales tax

5%

Products, Accommodation, Cancellation, No show

Stay over 31 days, entire stay is tax exempt

Canada Revenue Agency GST/HST Information for the Travel and Convention Industry

Ontario sales tax

8%

Products, Accommodation, Cancellation, No show

Stay over 31 days, entire stay is tax exempt

Canada Revenue Agency GST/HST Information for the Travel and Convention Industry

Additional info‌

Municipal accommodation tax (MAT) - Ontario Municipal Act, 2001 > Part XII.1

  • This tax is not currently supported in Mews.

  • 4% tax charged per room, per night in many Ontario cities and towns.

  • 13% HST is applied to the 4% MAT.

  • Applies to accommodation


Prince Edward Island

We have no legal environments in Prince Edward Island currently. If you would like to Operate with Mews in Prince Edward Island, please have fill out the Legal Environment Request form and our team will reach out to you.


Quebec

Tax name

Tax rate

Applies to

Exemptions

Government references

Canada sales tax

0%

Products

None

Canada Revenue Agency GST/HST Information for the Travel and Convention Industry

Canada sales tax

5%

Products, Accommodation, Cancellation, No show

Stay over 31 days, entire stay is tax exempt

Canada Revenue Agency GST/HST Information for the Travel and Convention Industry

Quebec sales tax

0%

Products

None

Revenu Québec zero-rates supplies page

Quebec sales tax

9.975%

Products, Accommodation, Cancellation, No show

Stay over 31 days, entire stay is tax exempt

Revenu Québec GST/QST page

Additional info

Exemptions

These exemptions aren't automated in Mews. Properties must handle them manually.


Saskatchewan

We have no legal environments in Saskatchewan currently. If you would like to Operate with Mews in Saskatchewan, please have fill out the Legal Environment Request form and our team will reach out to you.


Yukon

We have no legal environments in Yukon currently. If you would like to Operate with Mews in Yukon, please have fill out the Legal Environment Request form and our team will reach out to you.

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