Tourist Accommodation Tax

Goods and services tax (GST)

The Tourist Accommodation Tax is required by the City of Yellowknife and is therefore exempt from Goods & Services Tax (GST) for both you and your guests.

The tourism levy is calculated on the total purchase price of the accommodation. Total purchase price is the total amount that a guest pays for the right to use the accommodation, including any additional charges for extra beds, cots, cribs, linens, pets and cleaning, but not including the federal goods and services tax (GST). 

For example: You provide a room in your hotel for $200 per night which includes a cleaning fee. 

Purchase Price  $ 200.00

Tourism Tax ($200 x 4%) $8        

Total (not including GST) $ 208.00

Informing your customers

The price and total amount of the Tourist Accommodation Tax must be shown on any invoice, receipt, bill or other document issued for accommodations.

The City of Yellowknife collects the 4% Tourist Accommodation Tax from operators on a quarterly basis, based on the total revenue reported. The operator will provide the City with their report via a third party remittance website, by calling a City of Yellowknife customer service agent, or by paying in-person at Yellowknife City Hall. The first reporting period is July 1st to July 30, 2025 (for the collection period of April 1, 2025, to June 30, 2025).

Even if no revenue was collected during the reporting period, a remittance report must still be submitted. You are required to maintain records of total revenue, the amount of tax collected, and the taxes paid to the City. These records should be kept for at least six years.

Paying online

Penalties

Operators do not need to charge visitors the Tourist Accommodation Tax under the following circumstances

• The accommodation is outside of the City of Yellowknife’s boundaries
• The length of stay for a guest is more than 30 days
• The rate billed to the guest is less than $20 per night, or
• The guest is one of the following:
• An employee of the Government of the Northwest Territories traveling for work purposes
• A public agency or other reporting body defined in the Financial Administration Act
• A patient and/or their family on medical travel and/or staying at a hospital or healthcare facility

A: Yes, the customer pays the marketing levy because the payment was made after April 1, 2025.

Q: A customer booked their stay in the fall of 2024 for a visit in Summer 2025. The customer paid a deposit on the booking and will pay the remaining amount on the first day of their visit. Does the customer need to pay the 4% marketing levy on this booking?

A: Yes, the marketing levy is payable on the full amount of the booking because the final payment will be made after April 1, 2025.

Q: A customer booked their stay in the fall of 2024 for a visit in the Summer of 2025 and paid in full at the time of booking. Does the customer need to pay the 4% marketing levy on this booking?

A: No, the customer does not need to pay the marketing levy on this booking because it was paid in full before the marketing levy by-law came into effect.

Q: A customer booked their stay in fall of 2024 for a visit in summer of 2025. The customer provided a credit card to hold the room but was not charged. The payment will be processed 24 hours before their visit. Does the customer need to pay the 4% marketing levy on this booking?

A: Yes, the marketing levy is payable on the full amount because the payment will be made after April 1, 2025.

For now, there is functionality to ‘add tax’ through the Airbnb platform.  You can do this by following the steps outlined below.

Airbnb offers professional tools that hosts can use to automatically collect custom taxes on their bookings. Once set up, the system will collect these taxes from guests and send them to the host to remit. This tool must be activated by the host. To enable this feature, you may go to your account settings and follow the prompts to get started. 

1. Head to your account settings and opt-in to professional hosting tools.
2. Click Listings and select the listing you want to edit.
3. Under Listing editor, click Edit preferences.
4. Click Taxes, and then tap Add a tax. Choose the Tax type and the Type of charge.
5. Enter the Amount being collected (4%)
6. Enter your business licence number under Accommodations tax registration number. 
7. Choose whether your region provides an exemption for long-term stays (if you choose Yes, you’ll be given the option to provide additional details).