Taxes and Tax Refunds for Visitors
What You Should Know About Taxes
There is an 8% Provincial Sales Tax (PST), a 5 % federal value-added General Services Tax (GST), special taxes on food and liquor in restaurants, and a room tax on visitor accommodation.
As a visitor you will be charged:
GST -- the federal Goods and Services Tax of 5 %. This is a value-added consumption tax that applies to most goods, purchased gifts, food/beverages, and services, including most hotel and motel accommodation.
PST -- the Ontario provincial sales tax of 8% on any goods you buy, but not on services or accommodation.
Room Tax -- a 5% provincial tax (in place of PST) on most tourist accommodation charges, as well as the 5% GST.
Food Service -- In restaurants, 5% GST and 8% PST will be added to the food portion of your final bill, as well as a Liquor Service -- a provincial tax on alcoholic beverages (10%, in addition to the 5% GST).
Special Note: Rented houseboats do not qualify as rental accommodations for purposes of the taxes mentioned above. Houseboat rental fees are taxed at a rate of 8% (PST) and 5% (GST.
