Tax on Lodging – Paying and Billing the Tax
In addition to the GST and QST, you must pay a tax on lodging if you spend fewer than 32 consecutive days in a sleeping-accommodation establishment that is subject to the tax on lodging and is located in one of Québec's tourism regions that has asked the Québec government to have the tax apply in its territory.
The tax on lodging finances the tourism partnership fund established to support and promote the Québec tourism industry.
The tax on lodging is usually 3.5% of the price of an overnight stay.
However, it is $3.50 per overnight stay when:
- the accommodation unit is acquired by an intermediary (a person such as a tour operator) from a sleeping-accommodation establishment operator for the purpose of renting it to another person;
- the accommodation unit is rented from an intermediary.
3.5% tax on lodging billed on the price of an overnight stay
The tax on lodging is calculated only on the price of the overnight stay. The value of the breakfast, parking or any other services provided with the accommodation unit must be excluded from the price on which the 3.5% tax is applied.
On the receipt, the 3.5% tax must be shown in one of the following ways:
- If the price for an overnight stay is listed separately from the other goods or services provided, the amount of the tax must be:
- listed separately;
- included in the price and accompanied by a note to that effect.
- If the price for an overnight stay is not listed separately from the other goods or services provided, the amount of the tax must be listed separately and identified as the tax on lodging.
If you rent an accommodation unit from an intermediary (a person such as a tour operator) that acquired this accommodation unit to rent it to another person and the unit is located in a tourism region where the tax on lodging applies, you must pay the tax to the intermediary. In this situation, the tax is $3.50 per overnight stay.
The $3.50 tax per overnight stay is replaced by 3.5% of the price of an overnight stay if an accommodation unit is rented to an intermediary through a digital accommodation platform.
If the intermediary rents the accommodation unit to another person, the intermediary must collect an amount of tax equal to the amount of tax paid (3.5% of the price of an overnight stay).
The operator of a sleeping-accommodation establishment registered for the GST and the QST must calculate those taxes on the total including the price of the overnight stay, the value of the breakfast, parking and other included goods and services, and the tax on lodging. The GST and QST apply to all taxable supplies, including the rental of accommodation units to which the tax on lodging does not apply.
The tax on lodging does not apply to the rental of:
- a campsite (i.e. a place to set up a tent or recreational vehicle);
- an accommodation unit in a youth tourist accommodation establishment;
- an accommodation unit rented for six hours or less, or for more than 31 consecutive days;
- an accommodation unit rented on an occasional basis, such as:
- once a year during a festival,
- once a year during a period of absence,
- once a year during a school break.
For more information, refer to Tax on Lodging (IN-260-V).