Taxes On Goods And Services In The Rocky Mountains And Canada
The price tag you see on items in a store will not include the tax. It will be added on at the cash register at the time of purchase.
All across Canada there is 5 percent G.S.T. (goods and services tax). Just about anything you purchase or pay for as a service will have the G.S.T. It doesn’t apply to most basic food items purchased in a grocery store.
Alberta – one of the only provinces that does not have a provincial sales tax. Banff and Jasper National parks, Canmore, Calgary and Edmonton are located in Alberta.
British Columbia has a 7 percent provincial sales tax. This applies to most goods and some services. Yoho National Park and Kootenay National Park are located in B.C. Most items purchased in a store will have both the 5 percent G.S.T. and the 7 percent P.S.T. applied to them.
The provincial taxes vary throughout the rest of Canada. Some provinces have H.S.T. (harmonized sales tax) which is a blend of the G.S.T. and a provincial tax. For information on the taxes in other provinces see Retailcouncil.org/quickfacts/taxrates
Taxes And Additional Fees On Accommodation
On top of the nightly rate for accommodation there are taxes and fees. These extra costs can be an additional 10 to 15 percent of the room rate or in some cases slightly higher. It will depend on the region or municipality the accommodation is located in. The extra cost associated with accommodation are outlined below.
G.S.T. – The 5% Goods And Services Tax is charged on most accommodations across Canada.
Provincial Room Tax – In B.C. the provincial tax on hotel rooms is 8%. Alberta does not have a provincial room tax.
Municipal And Regional District Tax (MRDT) -This tax provides funding for local tourism marketing programs and projects. It is charged on accommodation in British Columbia at a rate of 2%. In Alberta the MRDT is 4%.
Destination Marketing Fee (DMF) – An additional Tourism Marketing Fee added to accommodation in some areas. This is added on top of the above mentioned MRDT tax. Some accommodation in Vancouver has a 1.5% DMF. Calgary, Edmonton and Canmore have a 3% DMF, Jasper and Banff it is 2%.
Daily Resort Fee –Some hotel properties have what is called a daily resort fee. This can be as high as an additional $15 a night on top of the room cost. This may cover things like shuttle services, internet, access to hotel pools and hot tubs, fitness centers, tennis courts and any other amenities the property may have to offer their guests. Unfortunately the fee is charged to the room regardless of whether you will be taking advantage of these offerings from the hotel or not.
If you booked accommodation through a third party online to try and get a better rate take note that daily resort fees and other fees such as parking are usually not included in the price you have paid. Check before you book, otherwise you might be surprised to find out you owe a bunch of additional costs when you check out of the room you thought was a good deal.