Ontario Staycation Tax Credit: Your Questions Answered
Thank you to TIAO for putting this information together!
In response to your questions about the Ontario Staycation Tax Credit, TIAO has obtained additional information and clarification from the province:
Q: Would transient boating count as an eligible accommodation? Would houseboat accommodation where you sleep onboard and live onboard for the duration of your holiday count as an accommodation expense?
A: No. Transient mooring fees may not be an eligible expense and short-term accommodation would generally not include a timeshare agreement, a stay on a boat, houseboat, train or other vehicle that can be self-propelled.
Q: How will receipts need to be itemized?
A: To claim the credit, individuals need to keep detailed receipts of their Ontario leisure accommodations. Those receipts should include information such as the location of the accommodation, the GST/HST paid, the amount paid for the accommodation portion of a stay, the date of the stay, and the name of the payor.
Q: Will the tax credit be available for travel package bookings made through tour operators? Would the tour operator need to separate out the hotel fees on an invoice to make the expense eligible?
A: See above. For greater clarity, the receipt must include the amount that can be reasonably considered to be the accommodation portion of a stay.
Q: Is there a cut-off point for the Staycation Tax Credit? Will the money run out?
A: No, the funding for this credit would not run out. All eligible individuals would be able to claim the credit on their Personal Income Tax returns for 2022 if all conditions are met.
Q: Is there a restriction on how eligible accommodations should be booked? I.e., directly with the accommodation or via an online platform?
A: An accommodation booked through an online platform operator or directly with the accommodation provider may be an eligible expense if it is subject to GST/HST and all other conditions for eligibility are met.
Q: For cottages, would visitors need to go through a booking platform?
A: A cottage may be an eligible expense, whether it is booked through an online platform operator or directly with the accommodation provider, if the accommodation is subject to GST/HST and all other conditions for eligibility are met.
Q: If visitors travel in 2022 but book the stay and pay now (2021), would it be eligible for the tax credit as it was not charged in 2022?
A: Eligible accommodation expenses could be claimed, regardless of the timing of payment, as long as the stay occurs between January 1, 2022 and December 31, 2022, and meets all of the other conditions.
For a full list of eligibility conditions for the Ontario Staycation Tax Credit, please click here. The Ontario Staycation Tax Credit would be delivered by the Canada Revenue Agency, which would determine eligibility for the credit on a case-by-case basis when reviewing 2022 Personal Income Tax Returns.