The British Columbia government and Airbnb have reached an arrangement allowing the online company to collect provincial sales taxes on all short-term rentals conducted through its platform.
Once legislative and regulatory changes are made, Airbnb will begin collecting the 8% provincial sales tax (PST) and the up-to-3% municipal and regional district tax (MRDT) on short-term accommodations provided in British Columbia through its platform.
To streamline the process of collecting taxes, Airbnb will remit on behalf of its hosts in British Columbia, ensuring that no additional administrative burden is placed on them.
This is the first arrangement of its kind in British Columbia. Airbnb is a leader in its sector for coming to the table with the Province, and agreeing to voluntarily register its platform to collect the PST and MRDT.
In the near future, the Province will be looking to move forward with similar arrangements with other accommodation platforms.
- There are 18,500 Airbnb providers operating in British Columbia.
- The Province estimates Airbnb will remit approximately $16 million through the PST and an additional $5 million through the MRDT.
- MRDT is up to 3% and is applied to rentals of short-term accommodations, paid by consumers.
- Elsewhere in Canada, Airbnb also collects the 3.5% tax on lodging, on behalf of its hosts in the Province of Québec.
- Airbnb collects and remits occupancy taxes on behalf of its hosts in many jurisdictions around the globe, including:
- the countries of France and India
- the states of Michigan, Nevada and California