Tax on Lodging – Mandatory Registration for Digital Accommodation Platform Operators
So that the rules for collecting the tax on lodging better fit the reality of today's digital and sharing economies, Québec's Finance Minister announced new obligations for operators of digital accommodation platforms in the 2019–2020 budget speech delivered on March 21, 2019. Beginning on January 1, 2020, operators of digital accommodation platforms that receive an amount as consideration for the rental of a unit in a sleeping-accommodation establishment that is subject to the tax on lodging must:
- register for the tax on lodging;
- collect a 3.5% tax on the price of every overnight stay; and
- report and remit the tax on lodging they collected in each tourism region by the last day of the month following the end of a calendar quarter.
The operator of a digital accommodation platform is a person who, via the platform:
- brings together the supplier of an accommodation unit (for example, a hotel) and the recipient (for example, an individual renting a hotel room);
- provides a framework for interactions between the supplier and the recipient; and
- manages the financial transactions between the supplier and the recipient.
Note that the tax on lodging currently applies in all of Québec's tourism regions except Nunavik.
For more information, write to Contact-PNH@revenuquebec.ca or call us at 1 833 372-3850 (toll-free in Canada and the U.S.) or 1 819 348-9735 (charges apply).