Guide to Completing the Municipal & Regional District Tax (MRDT) Return
This guide explains how to complete the Municipal and Regional District Tax (MRDT) Return (FIN 401).
If you’re a registered accommodation provider (PDF) located within a participating MRDT area, and you have an eTaxBC account, you can file MRDT returns and pay MRDT using the eTaxBC online system. eTaxBC is the easiest and fastest way to file your MRDT returns and pay your taxes. Learn more about creating an eTaxBC account.
If you’re a registered accommodation provider located within a participating MRDT area, and you haven't signed up for an eTaxBC account, you’ll receive a paper MRDT return by mail at the end of each reporting period. If you don’t receive a MRDT return and it's getting close to when you need to file your return and pay tax, you can download and complete a blank Municipal and Regional District Tax Return (FIN 401) (PDF).You can send your return and payment to us or take it to your nearest Service BC Centre.
If you offer accommodation in more than one participating MRDT area, you must file a separate return for each area. If you enrol with eTaxBC to file your returns online, you may consolidate your MRDT accounts onto one MRDT return.
Your completed MRDT return and payment must be received on or before the last day of the month following the end of the reporting period.
You use the MRDT return to calculate and pay the MRDT collected on your sales of accommodation during your reporting period.
You must file an MRDT return even if you didn’t collect MRDT during the reporting period.
Don’t use your MRDT return to pay any other amounts owed to us, such as any amounts owing from an audit or fees for a dishonoured cheque. In these cases, you will be sent a separate notice that includes payment instructions.
Provincial Sales Tax (PST) Return
This means you report the PST on the PST return and you report the MRDT on the MRDT Return. While PST and MRDT must be reported on separate returns, you may remit a single payment to cover both returns. Read the Guide to Completing the PST Return.
Enter all amounts in Canadian dollars.
Box A - Total Accommodation Sales
Enter the total amount of all of your accommodation sales for the period including taxable, non-taxable and exempt sales. Don't include any tax.
Box B - Tax Collectable on Sales
Enter the total amount of MRDT collectable (either collected, or charged but not collected) on all taxable accommodation sales.
Include any tax you may have collected in error. If your customer is entitled to a refund, see Box D below for more information.
Note: MRDT returns are not eligible for commission.
You must keep supporting documentation for any adjustments you claim. We may contact you to request documentation to verify the adjustment amounts claimed or they may be requested during an audit.
Box C - Tax on Bad Debt Write-Off
Enter the amount of MRDT remitted (paid) on accommodation sold on credit where the amount payable was later deemed uncollectable (a bad debt) and written off.
You must claim this adjustment in the same reporting period that the amount payable was written off. If you don’t claim the adjustment in the same reporting period, you must apply for a refund. You must apply for the refund within four years of the date the amount payable was written off. Learn more about bad debts in Bulletin CTB 001, Bad Debts (PDF).
If you received partial payment prior to write-off, you calculate the amount of the adjustment using the following formula:
Adjustment amount = MRDT remitted X (amount unpaid ÷ total amount payable)
Bad Debts Recovered
If any of the amounts written off as bad debts are later recovered, you must remit the MRDT on the MRDT return for the period that the amount was recovered using the following formula:
Amount to be added in Box B = MRDT remitted X (amount recovered ÷ total amount payable)
Enter the amount of any MRDT that you’ve credited or refunded to your customers but have previously remitted to us. For example, MRDT you refunded to your customer because the duration of their stay was shorter than what they were originally billed for.
You must claim this adjustment in the same reporting period that you credited or refunded the MRDT to your customer. If you don’t claim the adjustment in the same reporting period, you must apply for a refund. You must apply for the refund within four years of the date the amount of MRDT was refunded or credited to your customer.
Note: If a customer paid MRDT on accommodation that was occupied for a continuous period of more than one month, the customer must apply to us for a refund. You may not issue a refund to the customer and claim the amount as an adjustment unless the amount was charged in error at the time of payment.
Box E Total Adjustments
Enter the total of the amounts claimed in Box C and Box D. If you’re using eTaxBC this box is calculated for you.
Box F Total Amount Due
Enter the total of the amount from Box B minus the amount from Box E. If you’re using eTaxBC this box is calculated for you.
The amount calculated in Box F is the amount of MRDT you owe. You must pay the full amount in Box F to avoid any interest or penalty charges. If the amount calculated is negative, a credit will be applied to your account.
eTaxBC Account Filers
Once you’ve completed the MRDT return worksheet, follow the instructions in eTaxBC to file and pay your return. To avoid penalty and interest, you must file and pay your MRDT return on or before the due date.
Learn more about reporting and paying tax using eTaxBC.
Mandatory Electronic Filers
If you are a business with at least $1.5 million in total Canadian sales and leases per year, you are required to file your returns and remit MRDT electronically.
To file returns electronically, use eTaxBC.
To remit MRDT electronically, use:
- eTaxBC, or
- your financial institution's online banking or electronic funds transfer system.
Not all financial institutions offer online banking or electronic funds transfer. Check with your financial institution to see what services they offer.
Paper MRDT Return Filers
Front of Remittance Form
If your identification information is pre-printed on your MRDT return, check that all of the information is correct. If any information is wrong, write the correction on the remittance form. If you’re completing a blank MRDT return, enter the information indicated below in the corresponding fields on the remittance form.
Legal Name of Business - enter the legal name of your business.
Business Closed Permanently or Temporarily - If your business has closed, send us a completed Request to Close Provincial Sales Tax Account (FIN 357) (PDF).
It’s important that you notify us if you’ve closed your business because we'll continue to send you MRDT returns. If you don’t file the returns, you’ll be assessed for estimated MRDT due, penalty and interest.
Business Number - enter your nine digit business number.
Registration Number - enter the PST number you were given when you registered to collect PST.
Due Date - if your reporting period is one or more months, your due date is the last day of the month after the end of your reporting period. For example, if you’re reporting for a period ending July 31, the due date for your MRDT return is August 31.
Businesses with accounting periods that don’t correspond to calendar months, such as businesses with 13-period fiscal years, that have requested PST reporting periods that match their accounting periods have a due date that’s 30 days after the last day of the reporting period. For example, if your reporting period ends on June 23, 2013, the PST return and payment are due no later than July 23, 2013.
Period Covered - enter the reporting period for the return you are filing. If you’re filing a revised return, enter the reporting period of the original return.
Amount Paid - enter the total amount of your payment enclosed.
Back of Remittance Form
Enter the amounts from the worksheet in the corresponding boxes on the remittance form. If you’re filing an amended MRDT return, ensure that the “Amended” box on the remittance form is checked.
Sign and complete the certification section and detach the completed remittance form. Keep the MRDT worksheet for your records.
Filing Your Return
To file your MRDT return, send us the completed remittance form along with full payment:
Learn more about the different options on how to file and pay your MRDT return.
To avoid penalty and interest charges, MRDT returns and full payment must be received and dated on or before the due date by a financial institution, Service BC Centre or our office. If mailed, the MRDT return with full payment must be postmarked by Canada Post on or before the due date. Meter marks and non-Canadian postmarks aren't used to determine if a return or payment is on time.
Fees apply to any dishonoured payments.
If you have any questions about filing and paying your MRDT return, please contact us at:
- Telephone: 1-877-388-4440 (toll free within Canada)
- Email: CTBTaxQuestions@gov.bc.ca