Vancouver's Tax Structure
SALES TAX IN BRITISH COLUMBIA
Most goods and services in British Columbia are subject to a sales tax totaling 12% of the purchase price (7% PST + 5% GST). Please note alcohol is taxed at 15% (10% PST + 5% GST).
UNDERSTANDING VANCOUVER'S HOTEL ROOM TAX
The current tax/levy rate in Vancouver is 17.5% of the hotel room rate. Please note that there are three types of tax/levy involved:
> Goods & Services Tax (GST): taxed at 5% of hotel room rate
> Provincial Sales Tax (PST): taxed at 11% of hotel room rate (8%PST + 3%MRDT). MRDT: Municipal & Regional District Tax, which most major cities in BC collect.
> Destination Marketing Fee (DMF*): levy taxed at 1.5%of hotel room rate. DMF: a fee which approximately 36 of downtown Vancouver hotels collect to assist with the marketing of Vancouver as a destination.
The illustration below shows the breakdown of taxes for a hotel room rate of $100, $200 and $300 and the applicable taxes. In all cases, you can see that the tax/levy rate is 17.5%.
|HOTEL ROOM RATE||$100.00||$200.00||$300.00|
|GST at 5%||$5.00||$10.00||$15.00|
|PST at 11%||$11.00||$22.00||$33.00|
|DMF at 1.5% (where applicable)||$1.50||$3.00||$4.50|