On November 23, 2017, the Province of Ontario issued the Transient Accommodation Regulation 435/17, which came into force December 1, 2017. This Regulation establishes the necessary provisions for Ontario municipalities in implementing a Municipal Accommodation Tax (MAT).
Municipal Council approved the adoption of a mandatory Municipal Accommodation Tax of 4% on September 3, 2024, in the Municipality of Wawa. The effective date of the MAT implementation is April 1, 2025.
All Accommodation Providers doing business and/or facilitating business transactions within the boundaries of the Municipality of Wawa are required to collect and remit a 4% Municipal Accommodation Tax (MAT) on all room revenue sold for overnight accommodation.
Revenues generated from other hospitality services, including but not limited to such things as meeting room rentals, food and beverage, room service, laundry services, internet access, parking, etc. are excluded from the MAT.
The Municipal Accommodation Tax (MAT) is a 4% tax imposed on accommodation rentals fewer than 30 days. The 4% fee applies to stays at hotels, motels, motor hotels, lodges, inns, resorts, bed and breakfasts, or other lodging including those sold online. The tax applies only to the room portion of the cost and must be paid to the accommodation provider at the same time the customer pays for the accommodations.
All accommodation providers must register their establishment with the Municipality of Wawa by submitting a completed Accommodation Establishment Form (found in the Municipal Accommodation Tax Remittance Booklet below) with the Municipality within 30 days of the date of the commencement of their business.
As a MAT collector, there will be some responsibilities placed upon accommodation providers regarding verified annual room revenue statements to ensure the proper amount of taxes are collected and remitted.
The MAT revenue will be placed in a reserve fund, in part, for a future Destination Marketing Organization, for the purposes of promoting and growing the tourism industry in the Municipality of Wawa. A portion of the revenue will remain with the Municipality and used to promote and grow tourism in Wawa.
Important Details
- Wawa's Municipal Accommodation Tax (MAT) will take effect on April 1, 2025. All guest invoices are to include a line for "Municipal Accommodation Tax" as of April 1, 2025.
- Remittances to the Municipality must be made through the defined process (By-Law 3739-24) and the reporting periods for remittances are quarterly including: January 1 to March 31, April 1 to June 30, July 1 to September 30 and October 1 to December 31. Payments must be made to the Municipality within 30 days following the reporting period.
- The 4% MAT applies only on the room cost portion of overnight accommodation of all guest invoices.
- Late remittances are subject to a 1.25% interest rate charge per month, in accordance with the Town's regular tax interest rate for late charges.
Municipal Accommodation Tax Remittance Booklet
Frequently Asked Questions
Visitors and Guests
| How is the MAT applied to the purchase price of accommodation? |
| The 4 % is only applied to the purchase price of the accommodation (i.e., room fee).
MAT does not apply to amenity fees or service charges. |
| Is paying MAT optional? |
| No, as noted above, the MAT is mandatory. It must be paid at the same time you are paying the accommodation provider. |
| Why do I have to pay the MAT? |
| Payment of the MAT is mandatory and is authorized by By-Law 3739-24. The Province enacted Bill 127, Stronger, Healthier Ontario Act, 2017, providing single and lower tier municipalities the authority to levy a transient accommodations tax (or hotel tax). Section 400.1 of the Municipal Act, 2001 and O. Reg. 435/17 Transient Accommodation Tax provide a framework for the administration of a MAT. |
| Do I still need to pay the MAT if I do not show up for the reservation? |
| If you are charged for the accommodation whether or not you actually occupy it, then MAT will apply.
If you do not cancel your room reservation and you are charged for accommodation (no-show included) the MAT will be charged. |
| What happens with the collected MAT money? |
| Fifty per cent (50%) of the net revenue from the MAT will go to the municipality and directed into a reserve fund to be used towards tourism opportunities.
The other fifty percent (50%) of the net revenue will go to a reserve fund until a Destination Marketing Organization (DNO) can be established. As an eligible tourism entity, the DNO will administer the funds for tourism promotion and development, including a focus on attracting people to Wawa, and more. |
Owners Invoicing Information
| Does the MAT need to be on the invoice and receipt that is provided to customer? |
| Yes, the MAT must be included on every bill, receipt, invoice, or similar document for the purchase of Accommodation.
A separate item identified as “Municipal Accommodation Tax” showing the rate at which the MAT is calculated (4 %) and the amount of the MAT imposed. |
| Is HST charged on the MAT? |
| If the provider is registered for HST, the accommodation provider is responsible for collecting and remitting the HST on the entire charge including the MAT and remit the HST directly to the Canada Revenue Agency (CRA).
Contact the CRA or your financial advisors if you have further HST questions. |
| Does MAT apply to guests that do not show up for their reservation? |
| If a guest is charged for accommodation (no-shows included), the MAT is to be collected and remitted.
If the guest is not charged for the accommodation, but is required to pay a cancellation fee, the MAT would not apply to the cancellation fee. |
| What revenue does MAT apply to if I charge a fee that includes accommodation and meals? (bed and breakfast) |
| The accommodation provider would be responsible to allocate the revenue between the overnight accommodation and other services, amenities, or other charges separately on the invoice and collect and remit the MAT on the overnight accommodation portion of the fees.
If the fees are not separately listed on the invoice, the MAT applies to the entire invoice. |
| Can I deduct commission paid to a 3rd Party who collected the booking from the room revenue used to calculate the MAT? |
| No, the revenue to be used to calculate the MAT is the purchase price of the accommodation.
|
Owners Collection and Remittance
| How do I report the MAT collected? |
| You must complete the MAT Remittance Form on a quarterly basis. See Municipal Accommodation Tax Remittance Booklet for due dates.
|
| When is my MAT Return due to the Municipality of Wawa? |
|
Due Dates: Payment and Submission Information The Municipality has created a MAT Remittance Form (found in the Municipal Accommodation Remittance Booklet) for the collection of payments. This form can be completed online and emailed to ar@wawa.cc along with payment through EFT, or can be printed and dropped off to the Municipal Office at 40 Broadway Ave. and payment may be received through cash, cheque, or debit. Alternatively, a paper copy will also be available at the office. |
| How do I calculate the MAT + HST ? |
| The MAT is subject to HST. Therefore, you need to charge HST on MAT, and you will need to pay this HST and your other HST payments to the Canada Revenue Agency.
Sample calculation of the MAT and HST:
|
| What happens if my MAT Return is late? |
| If you are late to submit the MAT Return by the required due date the amount is automatically determined based on the following calculation:
|
| I heard Airbnb is collecting and remitting the 4% MAT on my behalf, is this correct? |
| The 4% Municipal Accommodation Tax for Wawa properties is not currently being collected by Airbnb and they are not submitting reports to the Municipality of Wawa with respect to the MAT. Airbnb is very specific about the jurisdictions that the MAT is collected in – these jurisdictions are listed on the Airbnb website.
Please contact Airbnb directly for instructions on how to set up the MAT pricing on your listing. |
| How do I remit the MAT collected? |
Payment can be made via the following methods:
Municipality of Wawa Payments which are returned (NSF) are subject to a fee in accordance with the Municipality’s Schedule of Fees By-law. Late Payments will be subject to 1.25% in accordance with the municipality's monthly interest charges related to taxation. |
| What happens if the MAT payment is late? |
|
Interest at the rate set out in the Municipal Schedule of Fees By-Law as the rate payable on overdue amounts owing to the Municipality, shall be charged on the amount of any MAT owing to the Municipality under this By-law including any MAT assessed under Subsections of this By-Law, from the day following the date on which the MAT was due and payable up to and including the date on which the MAT is paid in full. |
| What if a guest refund was issued after submitting my MAT Return? |
| Adjustments from prior reporting periods can be made in the period the refund was returned. |
| Do I prepare a MAT Return if I did not collect any MAT that month? |
| Yes, you will be required to submit the MAT Return for the period indicating no MAT was collected.
|
| Is there an audit process to verify monthly MAT Returns? |
| The Municipality, and/or its agent, have the authority to inspect and audit all books, documents, transactions, and accounts of accommodation providers.
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| Why do I need to Register? |
| The Accommodation Establishment Information Form (Registration Form) is used by the Municipality to set up your establishment name, address, and contact information correctly in our accounting system.
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| In the registration form, why does the Municipality need the average daily rates from the previous years? |
| If the MAT Remittance Form is not completed and submitted when due, the Municipality will assess the MAT based on the average daily rate provided on the Establishment Registration Form multiplied by the number of accommodations available each day during the period which the remittance was due as though all the accommodations had been purchased throughout the period. |
Additional information
More details can be found on the Tourism Industry Association of Ontario website:
https://www.tiaontario.ca/cpages/municipalaccommodationtax
If you have further questions, please contact Alex Patterson at apatterson@wawa.cc or call 705-856-2244 Ext. 242.
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