Effective April 1, the City of Toronto is implementing a four per cent Municipal Accommodation Tax (MAT) on hotels in Toronto.
The MAT is applicable to all rooms used for rental accommodation for four hours or more and continuous stays of 30 days or less for:
- hotels (including full service, limited service, small hotels)
- clubs (private or fraternal)
- condo Hotels
- the portion of a multi-use complex that is used to provide transient accommodation
Paying the Municipal Accommodation Tax
The Greater Toronto Hotel Association (GTHA) will collect this tax on the City’s behalf. All operators of properties applicable to the MAT must register with the GTHA. The MAT fees collected must be remitted to the GTHA within 15 days after month’s end. Late remittances will be charged an interest rate of 1.25 per cent per month, in accordance with City of Toronto interest rate for late charges.
The HST is applicable to the funds received from the MAT if the business is an HST registrant.
Accommodation providers are required to retain all records and documents necessary to enable an accurate determination of the MAT for a period of three years. Learn more about audits, dispute resolution and refunds.
Collecting the Municipal Accommodation Tax
All guest invoices must include a separate line for “Municipal Accommodation Tax” as of April 1. The four per cent tax applies only on the room cost portion of accommodation of all guest invoices. Revenues generated from other services, including meeting room rentals, food and beverage, room services, internet and phone charges, are excluded from the tax provided they are itemized separately on the bill.
If the accommodation was booked and paid for prior to April 1, the tax will not be applicable. If it was booked before April 1, but paid for on April 1 or later, the tax is applicable.