Horseshoe Bay from Road - Photo Don
We have outlined a list of taxes that must be paid by all consumers in British Columbia, whether residents of or visitors to the province. Most businesses will provide clients with a receipt that itemizes the price and any taxes paid for items purchased or rented.
The federal Goods and Services Tax (GST) is a value added tax of 5% that is applicable to most purchased goods and services. It is charged on all campsite and RV site bookings and room rentals in British Columbia.
In British Columbia an 8% Provincial Sales Tax (PST) is charged on all short-term room rentals by hotels, motels, cottages, inns, resorts and other roofed accommodations. Campsite and RV site bookings are exempt from any PST.
The PST for other goods and services is set at 7%. Some items such as food and books are exempt this tax.
Not all provinces in Canada have PST. Alberta, for instance, has none. The Retail Council of Canada has a webpage on the breakdown of sales tax rates by province. The government bulletin PST 310 explains how PST applies to goods that are brought or sent into BC or received in the province.
In British Columbia a Municipal and Regional District Tax (MRDT) of up to 3% is charged in provincially approved municipalities by hotels, motels, cottages, inns, resorts and other roofed accommodations. Select hotels in Vancouver levy an additional 1.5% Destination Marketing Fee (DMF) on top of the 2% MRDT; any additional MRDT is only charged on short-term room rentals and does not apply to overnight campsite or RV site bookings. It is worthy to note that the MRDT levy is used to fund local tourism marketing, including projects and programs. The government bulletin PST 120 on Provincial Sales Tax explains how PST and MRDT apply to sales of accommodation in BC.