Priceline-GST refund
Jul 13th, 2006, 04:42 PM
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Priceline-GST refund
Has anyone requested a GST refund on a hotel they booked through Priceline? I believe that when I went to Toronto last year they didn't charge it but with $20 of taxes and surcharges on a 1 night $80 room, I'm thinking there's GST on there. Priceline's response so far is to submit the bid confirmation but there's no breakdown of tax so I don't think they'd refund it without an itemization. I'm still working on getting a better response...
Jul 14th, 2006, 06:59 AM
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I don't know the answer to your question.
There's a discussion about it on the Better Bidding website at:
http://www.betterbidding.com/index.p...pic=13222&
The discussion at the Better Bidding website goes back and forth without an ultimate resolution.
Canada Revenue Agency's web page about the GST refund states that you have an option of claiming a refund for the actual GST shown on your hotel bill or using the quick calculation option. The quick calculation method involves claiming a flat GST rate of C$5 per room per night to a maximum of C$75 per refund application.
Even in the case of the quick calculation method, however, you have to submit an original receipt that shows you were charged GST.
Canada Revenue Agency's web page states:
<i>Internet accommodation receipts are acceptable provided they indicate payment in full and show the GST/HST that was charged.</i>
<i>In many cases, the GST/HST is not charged on trips bought over the Internet therefore no refund is available. Check with your trip organizer to determine if this applies to you.</i>
You can check it out for yourself here. The URL is long, so I'll split it over two lines:
http://www.cra-arc.gc.ca/tax/nonresidents/
visitors/individuals/claim-e.html#P46_2156
From the discussion at Better Bidding, it is not clear if the amount that Priceline charges the customer includes GST or not.
Here is Canada Revenue Agency's (CRA's) page that explains how Travel Service Providers and Tour Operators can claim a GST refund on accommodation that they re-sell to non-resident visitors to Canada:
http://www.cra-arc.gc.ca/tax/nonresidents/
visitors/tourism/travel-e.html#P20_483
I don't know whether this is the case or not, but perhaps Priceline is a business that is eligible for a GST refund on a hotel room that it has sold to one of its customers on the basis that Priceline has "re-sold" the room.
If CRA refunds Priceline, it seems intuitively obvious to me that CRA won't also refund the end customer.
Another thing for you to be aware of is the fact that Canadian provinces charge provincial taxes on hotel rooms. The lowest hotel tax is Quebec's, which is 3%. The highest is Prince Edward Island's, which is 10%. Ontario charges 5%, and British Columbia charges 8%. Alberta charges 4%. The provincial tax on a hotel room, which possibly is included in Priceline's charge to you, is <b>not</b> refundable.
I believe Priceline's charge to you also includes some sort of "commission" that the hotel pays to Priceline.
But I don't know if it's worth your while to pursue a GST refund. As of July 1, 2006, GST is 6% (down from the 7% that it was before). On an C$80 hotel room, the GST component is C$5 or so. If you've obtained the room through Priceline, you've probably got it at a rate that is considerably lower than the nominal going rate.
In looking at your post again, I'm not sure if you're discussing a current hotel reservation or last year's hotel stay. If you're talking about last year, you should be aware that you have only one year in which to claim a GST refund.
There's a discussion about it on the Better Bidding website at:
http://www.betterbidding.com/index.p...pic=13222&
The discussion at the Better Bidding website goes back and forth without an ultimate resolution.
Canada Revenue Agency's web page about the GST refund states that you have an option of claiming a refund for the actual GST shown on your hotel bill or using the quick calculation option. The quick calculation method involves claiming a flat GST rate of C$5 per room per night to a maximum of C$75 per refund application.
Even in the case of the quick calculation method, however, you have to submit an original receipt that shows you were charged GST.
Canada Revenue Agency's web page states:
<i>Internet accommodation receipts are acceptable provided they indicate payment in full and show the GST/HST that was charged.</i>
<i>In many cases, the GST/HST is not charged on trips bought over the Internet therefore no refund is available. Check with your trip organizer to determine if this applies to you.</i>
You can check it out for yourself here. The URL is long, so I'll split it over two lines:
http://www.cra-arc.gc.ca/tax/nonresidents/
visitors/individuals/claim-e.html#P46_2156
From the discussion at Better Bidding, it is not clear if the amount that Priceline charges the customer includes GST or not.
Here is Canada Revenue Agency's (CRA's) page that explains how Travel Service Providers and Tour Operators can claim a GST refund on accommodation that they re-sell to non-resident visitors to Canada:
http://www.cra-arc.gc.ca/tax/nonresidents/
visitors/tourism/travel-e.html#P20_483
I don't know whether this is the case or not, but perhaps Priceline is a business that is eligible for a GST refund on a hotel room that it has sold to one of its customers on the basis that Priceline has "re-sold" the room.
If CRA refunds Priceline, it seems intuitively obvious to me that CRA won't also refund the end customer.
Another thing for you to be aware of is the fact that Canadian provinces charge provincial taxes on hotel rooms. The lowest hotel tax is Quebec's, which is 3%. The highest is Prince Edward Island's, which is 10%. Ontario charges 5%, and British Columbia charges 8%. Alberta charges 4%. The provincial tax on a hotel room, which possibly is included in Priceline's charge to you, is <b>not</b> refundable.
I believe Priceline's charge to you also includes some sort of "commission" that the hotel pays to Priceline.
But I don't know if it's worth your while to pursue a GST refund. As of July 1, 2006, GST is 6% (down from the 7% that it was before). On an C$80 hotel room, the GST component is C$5 or so. If you've obtained the room through Priceline, you've probably got it at a rate that is considerably lower than the nominal going rate.
In looking at your post again, I'm not sure if you're discussing a current hotel reservation or last year's hotel stay. If you're talking about last year, you should be aware that you have only one year in which to claim a GST refund.
Jul 14th, 2006, 07:16 AM
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Thanks, it is for a recent hotel stay in Montreal so I'm within the time frame. The follow up email I received from Priceline says that they just will not provide customers with an itemization which indicates to me that they are probably collecting the GST and then receiving the refund. My husband recalls that there was/is a lawsuit regarding just that.
In any event, I have two other hotel bills that do itemize, I'll submit the Priceline invoice along with it even though it's highly unlikely that I'll get anything back. As you point out, it's only about $5, I think it's just a crappy way of doing business.
Thanks for your help!
In any event, I have two other hotel bills that do itemize, I'll submit the Priceline invoice along with it even though it's highly unlikely that I'll get anything back. As you point out, it's only about $5, I think it's just a crappy way of doing business.
Thanks for your help!
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