How Taxes are Calculated
Goods and Services Tax (GST):
The federal Good and Services Tax (GST) of 5% is applicable to most purchased goods and services. GST is charged on all campsite, RV site and room rentals in British Columbia.
Provincial Sales Tax (PST):
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 with four or more units.
Please note that campsite and RV site rentals are exempt from the Provincial Sales Tax, so PST is not charged.
The Provincial Sales Tax for other goods and services is set at 7%. Some items such as food and books are exempt from PST.
Municipal and Regional District Tax
In British Columbia the Municipal and Regional District Tax (MRDT) of up to 2% is charged in provincially approved municipalities by hotels, motels, cottages, inns, resorts and other roofed accommodations. This levy is used to fund local Destination Marketing Organizations.
The additional 2% MRDT is only charged on short-term room rentals and does not apply to overnight campsite or RV site rentals.
For a list of taxing jurisdictions and more information on MRDT visit the Consumer Tax web pages and download the list.
Lodging room rental rates are normally quoted before the calculation of federal GST, Provincial Sales Tax (PST) and Municipal Regional District Tax (MRDT). All establishments have the right to change their quoted rates from those published printed guides or other online sources but rates quoted at the time of reservations and accepted by the guest must be honoured.