Registering for the GST and QST – Short-Term Accommodations
If the total of your taxable supplies (including the amounts you received for the rental of one or more accommodation units) exceeds $30,000 in a given calendar quarter or for the four calendar quarters that precede the given quarter, you must register for the GST and QST.
You must also include in the total of your taxable supplies the fair market value of the amounts received in any barter, exchange or transfer transactions.
Small supplier
If your total taxable supplies do not exceed $30,000 in a given calendar quarter or for the four calendar quarters that precede it, you are considered a small supplier and as such you are not required to register for the GST and QST or to collect these taxes.
However, if you do business through a digital accommodation platform operated by a person registered for the taxes, this person must collect the GST and QST on your taxable supplies and remit them to us even if you are a small supplier.
If you are registered for the GST and QST, you can also claim input tax credits (ITCs) and input tax refunds (ITRs) respecting certain expenses incurred to offer the accommodation unit for rent.
Calculating taxes
You must calculate the GST and QST on the total supplies including:
- the price of an overnight stay;
- the tax on lodging; and
- the price of any goods and services provided with the accommodations.
You rent a room for a night and provide breakfast.
| Room | $135.00 | |
|---|---|---|
| Breakfast | + | $20.00 |
| Tax on lodging at 3.5% ($135.00 x 3.5%) | + | $4.73 |
| Subtotal (taxable supplies) | $159.73 | |
| GST ($159.73 x 5%) | + | $7.99 |
| QST ($159.73 x 9.975%) | + | $15.93 |
| Total | = | $183.65 |
Self-employed persons
If you are a self-employed person (such as a hairdresser or an electrician), you must include the amounts you received for short-term rentals of an accommodation unit in your total taxable supplies.
In the last 12 months, you sold $26,000 of handcrafted jewellery. You also received $5,600 for short-term rentals of your cottage.
| Sales of handcrafted jewellery | $26,000 | |
|---|---|---|
| Rental of a cottage for short-term stays | + | $5,600 |
| Total taxable supplies | = | $31,600 |
Since your total taxable supplies exceed $30,000, you are no longer a small supplier and you must register for the GST and QST.
For more information on the GST and QST, click GST/HST and QST.
For more information on the tax on lodging, click Tax on Lodging.