Municipal Accommodation Tax
Oshawa City Council approved the Municipal Accommodation Tax (M.A.T.) By-law which requires hotels and other providers of transient accommodations to collect a mandatory Municipal Accommodation Tax (M.A.T.) for properties in the City of Oshawa.
The tax rate of 5% became effective October 1, 2024.
| What is Municipal Accommodation Tax? |
| M.A.T. is collected from the visitor and applies only to the room cost portion of overnight accommodation in a hotel, motel, lodge, inn, resort, bed and breakfast, short term rentals or other establishment providing lodging for a continuous period of 30 days or less.
It is applicable to all licensed short term rentals. A portion of the revenues from the M.A.T. are reinvested to support tourism in Oshawa. Meeting room rentals, parking, food and beverage, room service, internet and phone charges are all excluded from the tax as long as they are itemized separately. All guest invoices will include a separate line identifying “Municipal Accommodation Tax”. If the provider is an HST registrant, HST is also payable on the M.A.T. portion. |
Information for Accommodation Providers
The City has designated the Ontario Restaurant Hotel and Motel Association (O.R.H.M.A.) to collect the tax. Accommodation provider information will be shared with them so that they may communicate directly with the short term rental provider and assist with the collection and remittance of the tax.
| Collections |
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Collected from the purchaser at the time of purchase, the tax amount is to be shown as a separate item or charge on a bill, receipt, invoice or similar document issued by the provider and identified as “Municipal Accommodation Tax”. |
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Payment Remittance and Reporting |
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Accommodation providers are required to remit tax collected:
O.R.H.M.A. provides accommodation providers with an online M.A.T. Reporting Portal that calculates taxes owing. Accommodation providers will receive an email invitation from O.R.H.M.A. to register for the online reporting and remittance portal after receiving approval for their short term rental accommodation. For M.A.T. reporting, access and further information on how to remit payments, contact O.R.H.M.A. by email [email protected] or phone 905-361-0268. |
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Late Payment and Arrears |
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Interest is calculated at 1.25% per month of the amount due and unpaid from the first day after the tax payment is due, up to and including the date on which the tax is paid in full. Unpaid M.A.T. and related penalties and interest that are past due are considered arrears and a debt owing to the City. The City is authorized to take one or more of the steps contained in the M.A.T. by-law to collect the outstanding amount. |
Frequently Asked Questions
| How do I register for O.R.H.M.A.’s online portal? | ||||||||||||
| The City of Oshawa has designated the Ontario Restaurant Hotel and Motel Association (O.R.H.M.A.) as its agent to collect M.A.T. from accommodation providers and remit it to the City of Oshawa. To register or change an existing registration, please contact O.R.H.M.A.
When contacting O.R.H.M.A. via email, please provide the following information:
Email: [email protected] Phone: 905-361-0268 |
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| Do I need to charge H.S.T. on M.A.T.? | ||||||||||||
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The M.A.T. is subject to H.S.T. Therefore, you need to charge H.S.T. on M.A.T., and are required to remit this and other HST payments to the Canada Revenue Agency. Example of the M.A.T. and H.S.T. calculation:
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