1.What type of accommodations are exempted from the Municipal Accommodation Tax (MAT)?
2. How much is the Municipal Accommodation Tax (MAT) and how is it applied?
The MAT rate is four percent (4%).
The MAT applies on the purchase price of accommodation(s) for continuous stays of 30 days or fewer. Revenues generated from ancillary services, including but not limited to such things as meeting room rentals; food and beverage; mini bar; internet; telephone; and room service will be excluded from the MAT.
Harmonized Sales Tax (HST) is applicable to the MAT.
3. Is the Municipal Accommodation Tax (MAT) a voluntary or mandatory tax?
As per BY-LAW NUMBER 16 OF 2O2O, the MAT tax is mandatory.
4.How do I remit the Municipal Accommodation Tax (MAT)?
Providers will use the Remittance Form and instructions to file their MAT return for their reporting period based on the following thresholds:
|Quarterly Period||Due Date|
|January 1 – March 31||Last business day of April|
|April 1 – June 30||Last business day of July|
|July 1 – September 30||Last business day of October|
|October 1 – December 31||Last business day of January|
Providers will be able to select preferred reporting frequency with their first remittance.
If the deadline falls on a Saturday, Sunday or holiday, the deadline will be extended to the next business day.
Payments made for the MAT, are not to be included with other payments such as Property Tax payments.
5. Where do I send my Municipal Accommodation Tax (MAT) remittance information?
Providers may submit their remittance form with payment by mail to:
City of Sarnia
255 Christina St N
Sarnia, ON N7T 7N7
7.What happens to the funds generated through the Municipal Accommodation Tax (MAT)?
The MAT will provide revenue that is important for the City of Sarnia tourism programs and will continue to help build a strong and vital community.
8.How do refunds and no shows affect the amount of Municipal Accommodation Tax (MAT) I remit?
If there is a cancellation requiring a refund or partial refund for the accommodation charge, then a MAT refund should also occur.
If the refund occurs after you have remitted the MAT, you can adjust the MAT submission the following month noting the refund in your submission documentation.
In the event of a no show, the MAT should still be charged, along with the accommodation fee.
9.Do I need to prepare a monthly report if I did not collect any Municipal Accommodation Tax (MAT) that month?
A monthly report is still to be filed, regardless if any MAT was charged or collected
10. How are the monthly reports verified?
Providers will be required to provide documentation to support the MAT that is being remitted.
The City will have the authority to enter the business to inspect documents and ensure that compliance is being met in accordance to our By-Law. These reviews will included;
- Audit or examine the books and records that relate to the amounts payable to the City; and
- All documents required by the City for an audit
- Questions that are related to the audit and give all reasonable assistance with the audit.
11. What Authority governs the new MAT tax
The City of Sarnia’s BY-LAW NUMBER 16 OF 2O2O
12. What are some things that are excluded from the MAT tax?
Many services such as meeting room rentals; food and beverage; mini bar; internet; telephone; and room service will be excluded from the MAT provided they are itemized separately on the invoice.
13.Is HST charged on top of the Municipal Accommodation Tax (MAT)?Harmonized Sales Tax (HST) is applicable to the MAT.
14.Does the Municipal Accommodation Tax (MAT) get applied to the rental of a hotel’s boardroom or banquet room? The MAT tax is only applicable on the purchase price of the accommodation.
15.What happens if I am late in submitting my return?
Where a Provider fails to submit a Municipal Accommodation Tax Return Form (Schedule B) on or before the due date prescribed at section L7 above, the amount that is determined on the basis of the following calculation shall be deemed to be the amount that is due and unremitted and this amount shall be assessed on the first day of default;
A X 4% = B
“A” is the amount of revenue that would have been generated had the Establishment experienced full occupancy for the period; and,
“B” is the amount deemed to be the amount of the Municipal Accommodation Tax that should have been collected and remitted and this amount shall be deemed to be the amount that is due and that remains unremitted on the first day of default.City of Sarnia
17.Do I need to disclose the Municipal Accommodation Tax (MAT) on the invoice or receipt that is provided to the guest?
Any invoice given to guest, must have a separate area designated for the MAT tax.
19.What if a provider uses a 3rd party booking company to secure reservations?
Any party that is providing the accommodation is responsible for collecting and remitting of the MAT