Due to evolving tax rules Booking.com will begin withholding and remitting taxes directly to the US & Canadian tax authorities for Virtual Credit Card (VCC) Reservations.
This change is being rolled out in 3 Phases for the United States based on property location:
- Phase 1 May 13th, 2024: Maine, New Hampshire North Dakota
- Phase 2 Sept 16th, 2024: Arkansas, North Carolina, South Carolina, Utah, Wisconsin and Wyoming
- Phase 3 Nov 18th, 2024: Colorado, Georgia, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Mississippi, Montana, Nebraska, New Mexico, Oregon and West Virginia
The details of these changes from Booking.com can be found here: Understanding tax remittance management in the US.
For Canada, as of Oct 1st, 2025, this change applies to the following property locations:
- British Columbia => 8% PST (Provincial Sales Tax) and 0% to 3% MRDT (Municipal & Regional District Tax) on room rate. For properties located in Vancouver, an additional 2.5% Major Event Tax will be applied.
- Alberta => 4% Tourism Tax on room rate and on certain additional services provided by accommodation.
- Saskatchewan => 6% PST (Provincial Sales Tax) on room rate and on certain additional services provided by accommodation.
- Manitoba => 7% PST (Provincial Sales Tax) on room rate and on certain additional services provided by accommodation (only meals).
- Ontario => Ottawa ONLY, 5% MAT (Municipal Accommodation Tax) on room rate. For properties in Ottawa, this change will only apply to properties that are classified as Homes, Bed and Breakfast, Cottage, and dedicated short-term rentals. Hotels, Motels and other similar property types are excluded.
- Quebec => For properties in Quebec, this will only apply to properties without a Quebec Sales Tax (QST) number. 3.5% QLT (Quebec Lodging Tax) and 9.975% QST (Quebec Sales Tax) on room rate if a property does not communicate us their QST number.
- Nova Scotia => Halifax and Bridgewater ONLY. 3% Tourism Tax on room rate.
The details of these changes from Booking.com can be found here: Understanding tax remittance management in Canada
What does this mean for RoomKeyPMS Clients?
For Properties in States/Provinces where tax is NOT being withheld, this update simply involves updated Reservation Notes. Reservation Notes will now clearly identify the reservation as a Virtual Credit Card Booking and will also display the amount the Virtual Credit Card will cover on the Guest Folio.
If the "Amount to charge Virtual Credit Card" does not match the room charge and tax posted in RoomKeyPMS you must confirm that the Room Charge Code and Taxes are setup in Booking.com Partner Hub EXACTLY as they are in RoomKeyPMS (Transaction Codes)
If your property is located in one of the states listed in the phases above, and accepts prepaid reservations from Booking.com with a Virtual Credit Card (VCC); you must follow these steps:
- Choose one of the options below
- Contact our Support Team [email protected] to confirm your option and the room charge code your property will use for the Booking.com reservations with tax withholding and remittance.
OPTION 1: Use the existing room charge code and taxes setup in RoomKeyPMS
This is acceptable if your property does NOT charge local taxes or fees.
OPTION 2: Create a new room charge code and taxes
This option is required if your property applies hotel fees or local tax charges to your Booking.com guest reservations. If you are not sure which taxes will be withheld, please review your tax settings in Booking.com Partner Hub.
For example below:
- RCH room charge code with 8.5% BDC Tax and a $10 Resort Fee that is applied to all guest reservations
- A new RCHBCVC room charge code WITHOUT the 8.5% BDC Tax (because this is now withheld and remitted by Booking.com) but WITH the $10 Resort Fee.
