Notice to Accommodators: Changes to Online Marketplace Facilitators

Effective July 1, 2022, all online marketplace services, located in or outside of BC, must register to collect and remit PST on these services: http://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/pst-142-marketplace-facilitators.pdf

Tourism agents that sell their own packages online do not qualify as online marketplace facilitators. The application of provincial sales tax (PST) and municipal and regional district tax (MRDT), if applicable, to the sale of tourism packages by tourism agents has not changed.

Tour operators do not qualify as marketplace facilitators as they are not selling accommodation on behalf of a third-party. The tour operators are selling their own tourism packages, which package transportation, accommodation and possibly specialized services (e.g., skiing) and/or meals. In effect, this is no different from a case where a person operates their own website to solicit sales of accommodation at their own properties. There is no third-party involved in facilitating those sales, as there would have to be for a person to be an online marketplace facilitator.

The application of PST and MRDT to the purchase of accommodation by tourism agents has not changed, and the discussion on page 8 of Bulletin PST 120 – Accommodation continues to apply when accommodation providers sell accommodation to a tourism agent.

Online marketplaces for short-term rental accommodation (eg. Airbnb) will continue to collect MRDT as OAP revenue. Online marketplaces for large accommodation properties (eg. Hotels) will collect MRDT as general MRDT revenue.

Related to the above changes, the following have been revised:

• Bulletin PST 001, Registering to Collect PST: https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/pst-001-registering-to-collect-pst.pdf
• Bulletin PST 120, Accommodation: https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/pst-120-accommodation.pdf
• FIN 418, Application for Registration for Provincial Sales Tax (PST): https://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst/forms

If you have any questions on the above changes, please email: CTBTaxQuestions@gov.bc.ca or call 1-877-388-4440.