Quebec, Airbnb reach agreement to collect lodging tax in the province

MONTREAL – Airbnb and the province of Quebec have announced what is being called a first tourist tax agreement on short-term rentals in Canada.

Quebec Tourism Minister Julie Boulet and officials with the Canadian arm of the home-sharing platform made the agreement official today.

Beginning Oct. 1, Airbnb will automatically collect and remit a 3.5 per cent lodging tax on bookings.

Related: Most Airbnb hosts not registered in Quebec, one year after law took effect

Airbnb’s Alex Dagg says the deal is a first for a Canadian jurisdiction and she adds it underlines just how the company and a province can work in tandem.

The company says nearly one million people used the service in Quebec in the last year alone and it estimates the province would have recouped $3.7 million in 2016 had the tax been in place.

Quebec implemented a law in April 2016 regulating properties on Airbnb and other home-rental websites.