What Is Mat Tax In Ontario

The implementation of a municipal accommodation tax mat allows municipalities across ontario to apply a mandatory rate on accommodations.

What is mat tax in ontario.

Is this a mandatory or a voluntary tax. Goods to which the provincial sales tax or harmonized sales tax are applied vary per province as do the rates. The province of ontario enacted the transient accommodation regulation 436 17 which came into effect december 1 2017 and provides the necessary provisions for municipalities across ontario to implement a municipal accommodation tax mat. Accommodation providers guests city of mississauga municipal accommodation tax faqs are available for both.

Harmonized sales tax hst is a blended combination of pst and gst. Stronger healthier ontario act budget measures 2017 which allows lower or single tier municipalities in ontario to charge a mandatory mat often referred to as a hotel tax the addition to the ontario municipal act 2001 the act and accompanying ontario. Orhma strongly opposed this and unsuccessfully advocated against a mat. Vaughan has set the rate at four 4 per cent consistent with other jurisdictions in ontario.

Hst applies in new brunswick newfoundland and labrador ontario prince edward island and nova scotia. Roads transit culture parks natural areas and recreation. The city says it is implementing the municipal accommodation tax known as mat to. Hotels and individuals offering short term rentals must pay a four per cent municipal accommodation tax mat.

Municipal accommodation tax in 2017 the ontario government through legislation provided municipalities with the ability to add a municipal accommodations tax mat and each ontario municipality will now have the option to implement such a tax. All toronto hotel motel and hostel guests will be paying a four per cent tax on accommodations as of april 1. Accommodation providers guests. City council approved a mandatory mat on january 31 2018.

City of toronto municipal accommodation tax register for mat hotel here. The introduction of the mat follows the province of ontario passing of bill 127. How is the municipal accommodation tax rate set. On march 4 2018 council endorsed the implementation of a four percent mat in principle subject to staff reporting back with more details on its implementation.