Yes, include on every bill, receipt, invoice or similar document for the purchase of Accommodation, a separate item identified as “Municipal Accommodation Tax” showing the rate at which the MAT is calculated (4%) and the amount of the MAT imposed.
If the accommodation provider is registered for HST, the provider is responsible for collecting and remitting the HST on the entire charge including the MAT and remit the HST directly to CRA. Contact the Canada Revenue Agency or your advisers if you have further HST questions.
If a guest is charged for accommodation (no-shows included) the MAT is to be collected and remitted. If the guest is not charged for the accommodation but is required to pay a cancellation fee, the MAT would not apply to the cancellation fee.
The accommodation Provider would be responsible to allocate the revenue between the overnight accommodation and other services, amenities or other charges separately on the invoice and collect and remit the MAT on the overnight accommodation portion of the fees. If the fees are not separately listed on the invoice, the MAT will apply to the entire invoice.
No, the revenue to be used to calculate the MAT is the purchase price of the accommodation. Costs incurred to secure or provide the accommodation are not deductible.