New Tax Rates In BC

posted on Jan 30

Death and taxes are definitely inevitable!  In British Columbia, the latest round of tax changes will have an immediate effect on the Accommodations Sector of the Hospitality Industry in this Province.  Effective on April 01, 2013, BC will be reverting from the existing "Harmonized Tax" (HST) to the previous Provincial Sales Tax (PST), federal Goods and Services Tax (GST) and the Municipal Room Tax (MRT), which will replace all previous taxes in the industry.

The net, bottom line effect on all visitors to BC who book their stays  in Hotels, Motels, Inns, Vacation Rentals and other accommodations, is that they will be paying a total of 15% combined tax on their lodgings.  It is not yet clear whether or not the GST portion of the taxes will be "reclaimable" by visitors, as it was under the previous incarnation of the Goods and Services Tax.  We hope so, and we'll keep you posted on developments as they take place.

If you're planning a visit, and a stay in B.C. we urge you to book and make full payment for your accommodations no later than March 31st, in order to avoid the new tax increase.

Sorry to be the bearer of bad news....but "forewarned is forearmed" grin