As a registered short-term rental operator, you are required to collect and pay a four per cent (4%) Municipal Accommodation Tax (MAT) on all rentals.
You need to start collecting the MAT from January 1, 2021. The payment is due on a quarterly basis, within 30 days of the end of the quarter, according to the following schedule:
|Reporting Period||Due Date|
|January 1 to March 31||April 30|
|April 1 to June 30||July 30|
|July 1 to September 30||October 30|
|October 1 to December 31||January 30|
You must file a MAT report for each reporting period, even if you did not rent out your short-term rental or if you opted to have Airbnb collect and pay the MAT on your behalf.
If you use Airbnb for your short-term rental, then you can opt to have Airbnb collect and pay the MAT on your behalf. You will still need to file your MAT report online even if you opt to have Airbnb collect and pay your MAT.
If you do not opt to have Airbnb collect and pay the MAT on your behalf, or if you use other companies for your short-term rental, then you will need to file your MAT report online and collect and pay the MAT yourself.
Here are step by step instructions on how to file your MAT report:
Step 1: Enter your Short-Term Rental Registration Number, in the format: STR-0000-XXXXXX.
Step 2: Enter the government-issued identification you used to register, either your Ontario Driver’s Licence or Ontario Photo Card. Please make sure you are entering the correct registration number and ID information. If you continue to receive an error message even after entering the correct information, please call 311. If your ID information has changed after registering your short-term rental, please update this information before filing your MAT report.
Step 3: Enter the total revenue you collected during the reporting period. If you have opted to have Airbnb collect and pay the MAT on your behalf, then do not include revenue collected by Airbnb.
Step 4: Enter the number of nights you rented the entire-unit and/or partial-unit during the reporting period. Do not include rentals through Airbnb, since the number of rental nights will be reported directly to the City of Toronto by Airbnb.
Step 5: Make a note of the amount of tax owing, which will be calculated on your MAT report.
You can make a correction to a previously submitted report. Corrections will only be accepted for the current and the previous reporting period. A corrected report will automatically replace the report you previously submitted for that reporting period.
You are also required to keep a record of all accommodation transactions, including revenue collected and any exemptions that may apply during a reporting period.
Once you file a MAT report online, you can make payment through your financial institution using online banking, telephone banking, at an automatic teller or in-person, using your short-term rental registration number.
Step 1: Complete your MAT Report according to the instructions above and note the amount of tax owing for the specified reporting period.
Step 2: Pay your MAT through your financial institution through online banking, telephone banking, at an automatic teller or in person using you Short-Term Rental Registration Number, in the format: STR-0000-XXXXXX. The payee is Short Term Rental Tax Toronto.
Step 3: Please make payment a few days in advance of the due date to ensure payment reaches the City prior to the due date.
It is your responsibility to ensure that the correct amount of MAT is paid to the City. The City may revoke your short-term rental registration or deny registration renewal if you fail to file and pay the MAT.
The MAT is only subject to HST if you are registered for HST as a short-term rental operator. You do not have to register for HST if your income from short-term rentals is below $30,000. Learn more about HST for short-term rentals.
If you are registered for HST, please find a sample calculation of the MAT and HST below:
You do not need to pay the HST to the City. You will need to pay this HST, along with your other HST payments, to the Canada Revenue Agency.
Interest apply on any overdue MAT payment at a monthly rate of 1.25 per cent from the first day after the tax payment is due, up to and including the date on which the tax is paid in full. After that time, interest will apply on the principal amount owing during the default period at an annual rate of 15 per cent.
A non-sufficient funds (NSF) charge of $40 will be applied to all MAT payment not honoured by a financial institution due to insufficient funds.
Learn about registration for Short-Term Rental Operators.