GST/HST on Platform-based Short-­term Accommodation

The growing popularity of digital platforms for short­term rental accommodations has prompted the Federal government to issue rules to govern these new business activities.

The recent Fall 2020 Economic Statement updates the application of GST/HST on short-term rental accommodation.

The Government is proposing to apply the GST/HST to all supplies short-term rental accommodation effective July 1, 2021. These supplies are short-term accommodation, that is, a rental of a residential complex, a residential unit, or part of a unit to a person for a period of less than one month where the price is more than $20 per day. The applicable tax rate would depend on the province where the short­term accommodation is situated.

Accordingly, the applicable GST rate will be 5% for short-term accommodation in situated in Quebec, Manitoba, British Columbia, Saskatchewan, Alberta, Yukon, the Northwest Territories or Nunavut. The applicable HST will be 13% for short-term accommodation situated in Ontario and 15% for short­term accommodation situated in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador.