Vancouver's Tax Structure

SALES TAX IN BRITISH COLUMBIA

Most goods and services in British Columbia are subject to a sales tax totaling 12% of the purchase price (7% PST + 5% GST). Please note alcohol is taxed at 15% (10% PST + 5% GST).

visit gov.bc.ca for more information
 

UNDERSTANDING VANCOUVER'S HOTEL ROOM TAX

The current tax/levy rate in Vancouver is 17.5% of the hotel room rate. Please note that there are three types of tax/levy involved:

> Goods & Services Tax (GST): taxed at 5% of hotel room rate

> Provincial Sales Tax (PST): taxed at 11% of hotel room rate (8%PST + 3% MRDT). MRDT: Municipal & Regional District Tax, which most major cities in BC collect.

> Destination Marketing Fee (DMF*): levy taxed at 1.5%of hotel room rate. DMF: a fee which approximately 36 of downtown Vancouver hotels collect to assist with the marketing of Vancouver as a destination.

> Short-term accommodation within the City of Vancouver: On January 27, the Province announced that a temporary Major Events MRDT at the rate of 2.5% over seven years would be introduced on February 1 and in effect until January 31, 2030.

The temporary increase applies to hotels within the City of Vancouver and to Airbnb, VRBO and all online marketplace facilitators that were required to register and collect the MRDT as of July 1, 2022.

Read the news release: https://news.gov.bc.ca/releases/2023FIN0007-000098