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Billing the 3% tax on lodging
If the price of the overnight stay is indicated separately from the other property and services provided,
- indicate the price of the overnight stay and the amount of the tax on lodging separately on the bill; or
- add a note on the bill specifying that the price of the overnight stay includes the 3% tax on lodging.
If the price of the overnight stay is not indicated separately from the other property and services provided, indicate the tax separately and add a note specifying that the amount concerned is the 3% tax on lodging.
Do not charge the 3% tax if the accommodation unit is provided free of charge.
GST and QST registrants
If you are collecting GST and QST, you must calculate them on the total of the rental price and the tax on lodging.
Example
A hotel owner rents a room for one night and provides parking. The tax may be indicated in either of the following ways:
| Room | $110.00 | |
| Parking | + | $20.00 |
| Tax on lodging ($110 x 3%) | $3.30 | |
| Subtotal | $133.30 | |
| GST ($133.30 x 6%) | + | $8.00 |
| QST ($141.30 x 7.5%) | + | $10.60 |
| Total | $151.90 |
| Room (includes the 3% tax on lodging) | $113.30 | |
| Parking | + | $20.00 |
| Subtotal | $133.30 | |
| GST ($133.30 x 6%) | + | $8.00 |
| QST ($141.30 x 7.5%) | + | $10.60 |
| Total | $151.90 |
Example
A hotel owner sells an accommodation package for two that includes an overnight stay, dinner and breakfast. The tax on lodging is calculated on the price of the overnight stay ($105 x 3% = $3.15).
| Package (includes 3% tax on lodging, that is, $3.15) | $213.00 | |
| GST ($213.00 x 6%) | + | $12.78 |
| QST ($225.78 x 7.5%) | + | $16.93 |
| Total | $242.71 |
Non-registrants
You are required to collect the tax on lodging even if you are not registered for the GST and the QST. Simply add the tax to the rental price.
Example
A room in a bed and breakfast is rented for one night. The tax on lodging is calculated on the price of an overnight stay ($46.50 x 3% = $1.40).
| Room and breakfast | $51.50 | |
| 3% tax on lodging | + | $1.40 |
| Total | $52.90 |
