Major Events MRDT Tax in BC: Rate, Exemptions, and Remittance

The Major Event MRDT in Vancouver is a 2.5% tax on short-term accommodation within city limits, in effect from February 1, 2023 through January 31, 2030, to help fund Vancouver’s costs as a host city for FIFA World Cup 2026.¹ It sits on top of the 8% Provincial Sales Tax and the standard 3% MRDT, so a Vancouver hotel room now carries 13.5% in combined provincial and municipal accommodation tax before the federal 5% GST is added.

How the 2.5% Stacks on Your Bill

The Designated Major Event Accommodation Area Tax Regulation sets the Major Event MRDT at 2.5% of the purchase price of accommodation.¹ Two other accommodation taxes already apply in Vancouver:

Provincial Sales Tax (PST) of 8% on accommodation throughout British Columbia
Standard MRDT of 3% for the City of Vancouver, used for tourism marketing

Added together, those three come to 13.5%. The federal 5% GST applies separately, and the purchase price used to calculate PST, MRDT, and Major Event MRDT does not include GST.²

Where the Tax Applies

The 2.5% Major Event MRDT applies only within the municipal boundaries of the City of Vancouver.¹ Book a room in Richmond, Burnaby, or North Vancouver and you will not pay it, even if you are traveling in specifically for a FIFA match or another Vancouver-hosted event. The line is the city boundary, not the metro region.

What Accommodation and Fees Are Taxed

The Major Event MRDT applies in the same manner as the PST on accommodation, meaning it covers all forms of short-term lodging offered to the public within Vancouver: hotels, motels, resorts, bed and breakfasts, and short-term rentals listed on platforms like Airbnb and VRBO.²

The taxable purchase price is not limited to the nightly rate. It includes additional charges the guest pays for the right to use the accommodation, such as cleaning fees, booking and administration fees, credit card processing surcharges, extra bed or crib fees, pet fees, and resort fees. A short-term rental listed at $150 per night with a $100 cleaning fee is taxed on the full $250.²

Providers already registered to collect PST and MRDT do not need a separate registration for the Major Event MRDT. It is reported through the existing MRDT return.²

Exempt Stays

Because the Major Event MRDT follows the PST accommodation rules, the exemption list is the same.² The main categories:

Continuous stays of 27 days or more by the same occupant, including employer-booked units where an employee stays the full 27 days
Low-cost accommodation charged at $30 or less per day, or $210 or less per week, unless listed on an online marketplace platform
Small operators not listed on an online platform whose gross accommodation revenue was under $2,500 in the past 12 months, with a reasonable expectation of staying under $2,500 in the next 12
Hospitals, assisted living residences, and long-term residential care facilities
Basic camping in tents or accommodation without bed linen, electricity, indoor plumbing, or heat
Summer camps and similar facilities run by religious or charitable organizations
Ship or train accommodation while the vessel is in transit or making a scheduled stopover in B.C.

The 27-day rule is the one that catches people. If you are relocating and staying in a furnished rental for a month while you search for permanent housing, confirm the booking is structured as a continuous stay so you are not paying 13.5% on something that qualifies as exempt.

Why the Tax Exists and How Long It Lasts

Vancouver is projected to host seven FIFA World Cup 2026 matches along with related events like the FIFA Fan Festival, and the province created this tax tool so host communities could offset those costs through visitor spending.³⁴ Under the regulation, Vancouver may spend Major Event MRDT revenue only on “incremental costs” as defined in its agreement with the province, not on general municipal expenses.¹

The tax began on February 1, 2023 and the regulation is automatically repealed on February 1, 2030.¹ The seven-year window was designed to collect revenue well before the matches take place and to continue afterward to cover remaining costs.

Reporting and Remittance for Accommodation Providers

Vancouver accommodation providers report and remit the Major Event MRDT through the MRDT return on the eTaxBC online portal. Paper returns are not accepted. You must remit all tax you have charged, whether or not you collected it from the guest.²⁵

Reporting frequency depends on total tax collected annually:

More than $12,000: monthly
$6,001 to $12,000: monthly or quarterly
$3,001 to $6,000: quarterly or semi-annual
$3,000 or less: quarterly, semi-annual, or annual

The return and payment must reach the province on or before the last day of the month following your reporting period. If that date falls on a weekend or B.C. statutory holiday, the deadline moves to the next business day.⁵ A return is required for every period, even a period with zero bookings.⁶

Late-Filing Penalties

A first-time late return draws a penalty of 5% of the unpaid tax plus 1% for each complete month it remains outstanding, up to a maximum of 12 months. Repeat late filers face 10% of the unpaid amount plus 2% per month, up to 20 months. Interest also accrues on overdue amounts.⁷ Even a modest tax bill can grow quickly under that structure.

Record Keeping

Keep records related to your PST and MRDT obligations for seven years from the end of the calendar year they relate to. Records must be in English and available if the province conducts an audit.⁸ For Airbnb and VRBO hosts, that means holding booking confirmations, payout statements, and remittance records well after a listing goes inactive.

1
British Columbia Laws. Designated Major Event Accommodation Area Tax Regulation
2
Province of British Columbia. Accommodation
3
British Columbia News. Province Provides New Tool for Communities Hosting Major Tourism Events
4
British Columbia News. Province, Vancouver, PavCo Update Cost Projections for FIFA World Cup 2026
5
Province of British Columbia. Reporting and Paying PST
6
Province of British Columbia. Guide to Completing the Provincial Sales Tax (PST) Return
7
Province of British Columbia. CTB 005 – Penalties and Interest
8
Province of British Columbia. Small Business Guide to PST