Is MAT Mandatory to Pay For Short-Term Rentals in Toronto?

The MAT (Municipal Accommodation Tax) is imposed on short-term rentals in Toronto. As a registered operator of short-term rentals, you need to assemble and put off 4 percent as a MAT on total rentals. As a short-term rental operator, you are required to collect the MAT tax as of January 1st. The payment will reflect as pending on a quarter-basis under 30 days later in the quarter period as per the below-given schedule.

Getting the Mat Report Filed

In order to collect and return the MAT on behalf of operators, short-period rental businesses can enter into an agreement for an elective collection with Toronto. Even if you did not rent out your short-term rental accommodation tax or decided to have your short-term rental firm gather and deposit the MAT on your behalf, you are still required to submit a report of the MAT for the entire reporting period. If you need assistance, please contact us by calling 311 for the Tax and Utility Inquiry Line. Below-given all the fields that are required unless specified as (optional):

Submission

Shooter Term Rental Registration Details

To make sure your Municipal Accommodation Tax Report is correctly applied to your short-term rental property, please provide the information below.

Number for Short-Term Rental Registration

The number will be given to you when you sign up for your temporary housing; Format: STR-0000-AAAAAA

What government ID will you use for registration?

Reporting

Which kind of report are you submitting?

Period of Reporting

Have you submitted short-term rentals amid this period?

A short-term rental is when all or a portion of a dwelling unit is made available for hire for fewer than 28 days straight. Bed and breakfasts (B&Bs) are included, but hotels and motels are not. Additionally, it excludes accommodations if no payment is made.

Agreement

Note: Always go through your report before making a submission. All supporting paperwork, claims, and representations, as well as the information supplied in this application, are true and correct. This application will be examined and verified; erroneous, false, or misleading information may result in penalties, taxes, interest, and fees being charged to the account to which this application belongs. All supplemental materials must be retained for three years.

Submit Report

You can also follow the step wise guide on how to put together your report of Municipal Accommodation Tax:

• Fill in the number of your registration number of short-term rental in the following format: STR-0000-XXXXXX.
• Enter your Ontario Photo Card, Ontario Driver's Licence or the other form of government-issued identity you need to register. Please double-check that the D information and registration number you are providing is accurate. Even after providing accurate information, if you still get an error notification, dial 311. Before submitting your MAT report, please update your ID details if it changed after you registered your short-lived rental.
• Calculate your total revenue for the reporting duration. Do not include Airbnb's revenue if you chose to have them gather and postpone the MAT on your regard.
• Indicate how many nights during the reporting period you leased the complete apartment or a portion of it. Do not conclude Airbnb rentals as Airbnb will report the count of nights rented immediately to Toronto.
• Write down the tax balance that will be determined by your report of MAT. A report that has already been submitted can be corrected. Only corrections for the most recent and earlier reporting periods will be allowed. The record you initially provided for that reporting period will be instantly replaced by an updated report.

You must also keep track of all transactions involving accommodations, including any income earned and any accommodations that might be granted during a reporting period.

Keeping Track of the Municipal Accommodation Tax

After submitting a record of MAT online, you can use your registration number for short-term rental to pay via your financial institution using telephone banking, internet banking, an automated teller, or individually.

• Fill out your record of MAT as directed above, making note of the complete taxable amount for the designated reporting time.
• Use your registration number of short-time rental, which has the format STR-0000-XXXXXX, to submit your MAT. you can submit it via your financial institution from online banking, telephone banking, an automated teller, or by visiting the office. Short Time Rental Tax of Toronto is the payee.
• To ensure that your money has reached Toronto in time for the due date, please make your payment a few days beforehand.

You are in charge of making sure the right amount of MAT is paid to the city. If you don't submit and pay for the MAT, the city may withdraw your registration number for short-term rental or refuse to renew it.

Taxes: HST vs. MAT

Only if you are a short-time rental operator registered for HST tax is the MAT subject to the tax. If your income from short-term rentals is less than $30,000, you do not need to register for HST. Learn more about HST online filing for vacation rentals in a new tab. Please see a sample MAT and HST calculation below if you are registered for HST:

• 4% MAT: $4.00
• 13% HST: $13.52
• Room subtotal: $100
• Total: $117.52

The HST is not required to be paid to Toronto. In addition to your other payments of HST, you must pay this one to the agency of Canada Revenue.

Paying Interest on MATs

From the day after the tax payment is delayed until the day on which the tax is fully paid, interest is charged on any overdue MAT payment at a monthly rate of 1.25%. After that, a 15% annual rate of interest on MAT will be charged on the principal amount due throughout the default term. All MAT payments that are declined by a financial organisation owing to insufficient funds will incur a $40 non-sufficient funds (NSF) fee.

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