Frequently Asked Questions - Providers
1. What type of accommodations are exempted from the Municipal Accommodation Tax (MAT)?
See exemption listing.
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.
All guest invoices should include a separate line for Municipal Accommodation Tax as of October 1, 2018.
If the accommodation was booked and paid in full prior to October 1, 2018, the tax will not be applicable. If it was booked before October 1, 2018 but paid on October 1, 2018 or later, the tax is applicable.
Harmonized Sales Tax (HST) is applicable to the MAT.
3. Is the Municipal Accommodation Tax (MAT) a voluntary or mandatory tax?
The MAT is mandatory pursuant to City of Windsor By-law #133-2018.
4. How do I remit the Municipal Accommodation Tax (MAT)?
Providers will use the self-remittance form and instructions to file their MAT return for their reporting period based on the following thresholds:
Annual revenue in excess of $6M CAD – Monthly (due within 30 days)
Annual revenue under $6M CAD – Quarterly (due within 30 days)
|January 1 - March 31
|April 1 - June 30
|July 1 - September 30
|October 1 - December 31
Providers will be able to select preferred reporting frequency with their first remittance.
Where the deadline falls on a Saturday, Sunday or holiday, the deadline shall be extended to the next business day.
Payments must be made by way of cheque payable to The Corporation of the City of Windsor within 30 days of the end of the filing period. Other options for payment such as EFT and electronic filings will be explored at a later date.
Payment of the MAT is not to be included with any other payments, such as property taxes.
5. Where do I send my Municipal Accommodation Tax (MAT) remittance information?
Providers may submit their remittance form with payment by mail to:
Municipal Accommodation Tax Administrator
City of Windsor Finance Department
350 City Hall Square West, Suite 410
Alternatively providers are able to email their remittance form to email@example.com on or before the due date. Payment by way of cheque will still be required to be delivered to the address noted above.
6. Are bookings which were prepaid prior to the enactment of the by-law exempt from Municipal Accommodation Tax (MAT)?
If the accommodation was booked and paid in full prior to October 1, 2018, the tax will not be applicable. If the accommodation was booked before October 1, 2018 but paid in part or in full on October 1, 2018 or later, the full MAT will be applied to the purchase price of the accommodation.
7. What happens to the funds generated through the Municipal Accommodation Tax (MAT)?
The MAT will support important City of Windsor tourism programs and contribute to a strong and vital community. One half of the net MAT revenue will be shared with Tourism Windsor Essex Pelee Island (TWEPI) to support their promotion and development of Windsor tourism. The other 50% of net MAT revenue will remain with the City to provide funding for future project/initiatives which aim to support tourism.
8. How do refunds and no shows affect the amount of Municipal Accommodation Tax (MAT) I remit?
If the Municipal Accommodation Tax was added to an invoice which was paid by a guest, and you subsequently issue a full or partial refund on that accommodation charge, the customer should also be refunded the applicable amount of MAT that corresponds to the refund amount. 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.
If you experience no shows and your policy is to charge a portion of the room rental as a penalty, then the MAT should also be charged to the no show portion.
9. Do I need to prepare a monthly report if I did not collect any Municipal Accommodation Tax (MAT) that month?
Yes, you will need to file a MAT remittance for each reporting period regardless of whether there was any MAT charged and collected.
10. Is there an auditing process to verify monthly submissions?
Yes, providers will be required to provide upon request documents necessary to support the information on their MAT remittances.
The City shall be granted access to enter the business premises for the purpose of inspecting documents to ensure compliance with its by-law and will have the authority to audit and request information from any provider, including:
Audit or examine the books and records that relate to the amounts payable to the City; and
Require a provider to produce all documents required by the City for an audit and to answer all questions relating to the audit and give all reasonable assistance with the audit.
11. Under what authority does the provider have to charge and collect the Municipal Accommodation Tax (MAT)?
Pursuant to City of Windsor By-law #133-2018.
12. Are other hotel charges exempt from the Municipal Accommodation Tax (MAT)?
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 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?
Not necessarily, the MAT is applicable only to the purchase price of accommodation.
15. What happens if I am late in submitting my return?
Interest and penalties will apply on any overdue remittance as follows:
Penalty calculated as 1.25% on the amount of any Municipal Accommodation Tax (MAT) due and owing on the first day of default; and
Interest calculated as 1.25% per month on the amount of any MAT due and owing from the first day of each month subsequent to the date of default up to and including the month in which the tax is paid in full.
Failure to file and remit as required may result in MAT assessments imposed by the Chief Financial Officer. Interest and penalty will apply once amounts are determined.
16. What if I have more questions.
17. Do I need to disclose the Municipal Accommodation Tax (MAT) on the invoice or receipt that is provided to the guest?
All guest invoices should include a separate line for MAT as of October 1, 2018.
18. Am I able to deduct commission or other charges paid to a 3rd party who collected the booking for the room revenue used to calculate the Municipal Accommodation Tax (MAT)?
No the revenue used to determine the MAT is the gross purchase price of the accommodation. Costs incurred by the provider to secure the accommodation are not deductible against the MAT revenue base.
19. What if a provider uses a 3rd party booking company to secure reservations?
The party responsible for providing the accommodation is also responsible for the collection and remittance of the MAT.