Sales of short-term accommodation in British Columbia are subject to provincial sales tax (PST) at a rate of 8% and may also be subject to Municipal and Regional District Tax (MRDT) at a rate of up to 3%.

BC Finance recently updated and expanded its website information on how such taxes apply to short-term accommodation sales in the province. The changes to information previously included in Bulletin PST 120, Accommodation (which was issued in February 2014), include the following:

• replaced list of participating municipalities, regional districts, and eligible entities with a link to the MRDT location mapto find participating areas and their tax rates;

• added information on how PST and MRDT apply to time share agreements; and
• clarified the total purchase price of accommodation includes any additional fees charged for the right to use the accommodation.

Current information on the application of PST and MRDT to sales of short-term accommodation is available on the provincial government website at Accommodation - Province of British Columbia (gov.bc.ca).