Montréal Hotel Occupancy Fees - City Bylaw Guide
Operators in Montréal, Quebec must understand how municipal occupancy fees, municipal licensing obligations and provincial/federal remittances interact when operating short-term or long-term hotel accommodation. This guide explains calculation basics, who collects and remits which charges, compliance steps and where to file complaints or appeals under Montréal rules. It focuses on municipal requirements first and references provincial and federal remittance obligations that commonly apply alongside city bylaws.
How to calculate occupancy fees
Start by identifying the municipal occupancy fee or tourist accommodation tax applicable to your establishment and whether it is charged per overnight stay, per room-night, or as a percentage of the nightly rate. Confirm which supplies are exempt (for example, staff accommodation or long-term leases) on the City of Montréal page for tourist accommodation rules and licensing Montreal tourist accommodation page[1]. For provincial and federal taxes (GST/HST and QST) apply the rules from the federal and provincial revenue authorities for taxable accommodation supplies Canada Revenue Agency GST/HST guidance[2].
- Compute the taxable base: nightly rate before municipal occupancy fee and before applicable provincial/federal taxes.
- Apply the municipal occupancy fee or percentage as set by the city bylaw or municipal notice.
- Add provincial (QST) and federal (GST) taxes where those apply to accommodation supplies.
- Keep invoices and nightly sales records to support remittances and returns.
Remittance, collection and reporting
Determine whether the municipality requires you to collect the occupancy fee from guests or remit it from gross receipts. Registration and licensing requirements for tourist accommodation are administered by the municipal licensing department; check the City of Montréal licensing guidance for obligations, registration steps and where to remit municipal charges Montreal tourist accommodation page[1]. For provincial and federal returns, follow filing frequency and remittance instructions from the Canada Revenue Agency (GST/HST) and Revenu Québec (QST) guidance CRA GST/HST guidance[2].
- Register for any municipal licensing and obtain the required municipal account or remittance instructions.
- Confirm municipal remittance frequency and deadlines, and align accounting periods with provincial/federal filing cycles.
- Prepare monthly or periodic reports that separate municipal occupancy fees from taxable revenue for GST/QST reporting.
Penalties & Enforcement
Municipal enforcement is handled by the City of Montréal's by-law enforcement and licensing teams; specific inspection and complaint processes are published by the City of Montréal on its official site Montreal tourist accommodation page[1]. Provincial and federal audits or penalties for incorrect GST/QST remittances are handled by the Canada Revenue Agency and Revenu Québec respectively CRA GST/HST guidance[2].
- Monetary fines: not specified on the cited municipal page; refer to the City of Montréal enforcement pages for precise amounts and schedules.
- Escalation: information about first, repeat or continuing offence escalation is not specified on the cited municipal page.
- Non-monetary sanctions: the city may issue orders to comply, suspend licences, or seek court remedies as enforcement measures.
- Enforcer and complaints: By-law Enforcement and Licensing departments handle inspections and complaints; use the City of Montréal complaint/contact pages for reporting.
- Appeals and review: appeal routes and deadlines depend on the specific bylaw and decision; the municipal page does not specify universal time limits and you should consult the decision notice or municipal office for exact time limits.
Applications & Forms
Municipal forms and licence applications for tourist accommodation are administered by the City of Montréal; the city’s licensing page lists required forms, fees and submission methods. If a specific application number or form is not published on the municipal page, it is "not specified on the cited page" and you should contact the municipal licensing office to obtain the correct form and fee schedule Montreal tourist accommodation page[1].
How-To
- Identify whether your establishment qualifies as a tourist accommodation under Montréal rules.
- Register for municipal licensing and obtain remittance account details from the City of Montréal.
- Calculate nightly charges separating municipal occupancy fees from taxable revenue for GST/QST.
- Collect fees from guests and record each transaction with invoices showing the municipal fee separately.
- File municipal remittances on the schedule required by the city and file provincial and federal returns for QST and GST as required.
FAQ
- Who must collect Montréal's occupancy fee?
- Operators of tourist accommodation must collect and remit municipal occupancy fees as set out by the City of Montréal; check the municipal licensing page for scope and registration details Montreal tourist accommodation page[1].
- Are municipal occupancy fees taxable under GST or QST?
- Whether municipal occupancy fees are included in the taxable base for GST/QST depends on federal and provincial rules for supply of accommodation; follow CRA and Revenu Québec guidance for correct treatment CRA GST/HST guidance[2].
- What happens if I fail to remit municipal occupancy fees?
- Enforcement may include orders, licence suspension or court action; specific fines and escalation details are not specified on the cited municipal page and must be confirmed with the municipality.
Key Takeaways
- Always separate municipal occupancy fees from taxable revenue in your accounting.
- Register and comply with City of Montréal licensing requirements before operating.
- Keep detailed invoices and remit municipal and provincial/federal taxes on time.
Help and Support / Resources
- City of Montréal — Tourist accommodation and occupancy fee guidance
- City of Montréal — Licences and permits (licensing office)
- Canada Revenue Agency — GST/HST for businesses
