Purchaser Invoicing Information

1. Do I need to disclose the MAT on the invoice or receipt that is provided to the Purchaser?

Yes, include on every bill, receipt, invoice or similar document for the purchase of Accommodation, a separate item identified as “Municipal Accommodation Tax” showing the rate at which the MAT is calculated (six per cent) and the amount of the MAT imposed.  

2. Is HST charged on the MAT? 

If the provider is registered for HST, the accommodation provider is responsible for collecting and remitting the HST on the entire charge including the MAT and remitting the HST directly to the Canada Revenue Agency (CRA). Contact the CRA or your advisers if you have further HST questions.

3. Is the MAT applicable to guests that do not show up for their reservation?

If a guest is charged for accommodation (no-shows included) the MAT is to be collected and remitted. If the guest is not charged for the accommodation but is required to pay a cancellation fee, the MAT would not apply to the cancellation fee.

4. What revenue does MAT apply to if I charge a fee that includes accommodation and meals (such as bed and breakfast)?

The accommodation provider would be responsible to allocate the revenue between the overnight accommodation and other services, amenities or other charges separately on the invoice and collect and remit the MAT on the overnight accommodation portion of the fees. If the fees are not separately listed on the invoice, the MAT will apply to the entire invoice.

5. Can I deduct commission paid to a third party who collected the booking from the room revenue used to calculate the MAT?

No, the revenue to be used to calculate the MAT is the purchase price of the accommodation. Costs incurred to secure or provide the accommodation are not deductible.