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Summary
Billing the $2 tax on lodging
The $2 tax may be
- included on the bill as part of the total price of the overnight stay, or
- indicated separately on the bill.
You must bill the $2 tax each time you rent an accommodation unit, even if the 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
| Room (one night) | $104.00 | |
| Meals | + | $25.00 |
| Video | $9.50 | |
| Tax on lodging | + | $2.00 |
| Subtotal | $140.50 | |
| GST ($140.50 x 6%) | + | $8.43 |
| QST ($148.93 x 7.5%) | + | $11.17 |
| Total | $160.10 |
Non-registrants
You are required to collect the tax on lodging even if you are not registered for the GST and the QST. In this case, simply add the tax to the rental price.
Example
| Room (one night) | $46.00 | |
| Tax on lodging | + | $2.00 |
| Total | $48.00 |
