Municipal Accomodation Tax (MAT)

[Trang152]

Hi,

im a host in Thunder Bay. The city requires us to collect the MAT (4%). Does anyone know  if the occupancy tax that Airbnb charges on bookings is the same as MAT. I’ m confused as to whether or not this is a separate tax we are to charge. Also, the occupancy tax that airbnb is currently charging doesn’t add up to 4%, so I have no idea what this tax is. Help!

[Kathy1371]

I’m just CHS, SC. It’s an additional tax. Had to pay a fee, get a business license and pay the 4% monthly.

money grab 

[Paula]

Hi @Kathy1371, I am tagging @Trang152 here so she receives a notification of your message. 

Quick tip: To tag someone, tap "@" and select the host's username from the dropdown menu 😊

[Michael9695]

Hi Trang152,

Did you ever figure out the MAT tax for your city?

[Trang152]

Yes, I called the city and they were able to help me with that. It’s 5% now and we have to add that to the nightly charge and submit to the city of Thunder Bay.

[Emilie]

Thank you @Trang152 for coming back and sharing your experience on this with us! I will tag in @Michael9695 here to make sure they get a notification of your response and can come back to check your insights. 🙂

[Michael9695]

Hello @Trang152,

Thank you so much for your response. I hope you have time for a couple of questions. 

Just to confirm, I believe you use the custom tax called "Lodging Tax"?

I thought that the line item that the guest needs to see says "municipal accommodation tax". Perhaps this doesn't matter. 

Do you mention the MAT tax on your listing? I did a quick check, but I didn't see it.

Do you mention the MAT tax in any of your automated messages?

What numbers did you use for the below fields? This is required when adding the custom tax.

[Trang152]

hello @Michael9695
If you collect and submit your own HST to CRA, then you will enter your business number in the first field, otherwise check off you don’t have one. If you register with the city of TBay’s revenue division, then they will give you the accommodation registration number to enter in the second field. I don’t mention the MAT tax in my listing because the guests will see a breakdown of their charges when they book. There isn’t a choice for MAT tax so it doesn’t matter what you select…lodging tax is fine and type in 5%. The most important thing is to register with the city and get your registration number. They will explain everything to you. Hope this helps!

[Joan2709]

@Trang152 

Please see this thread on the same topic:

https://community.withairbnb.com/t5/Ask-about-your-listing/4-0-MAT-Municipal-Accommodation-Tax-in-Lo...

This is what is currently showing as taxes on each of your bookings:

The HST tax is 13%; not sure what the other 2 tax percentages are but it looks like it adds up to 7% addl. Not sure if the 5% MAT is what the "Lodging Tax" is. You'll have to check the tax section in preferences as noted in the other thread link.