Vancouver to Introduce Short-Term Accommodation Sales Tax for FIFA World Cup

Last fall, the City of Vancouver, a host city of the FIFA World Cup in 2026, asked the Provincial government to increase the Municipal and Regional District Tax (MRDT) on short-term accommodations.

The increase would help with the costs of hosting the matches.

In response, the Province has introduced changes to the Provincial Sales Tax Act so eligible municipalities can apply for an additional Major Events MRDT as high as 2.5% on short-term accommodation sales.

“Similar to how the Province helped Whistler fund its 2010 Winter Olympics, we’re grateful for all our partners who are working together to give soccer fans, people in the tourism sector and all British Columbians this once-in-a-generation opportunity,” said Katrine Conroy, Minister of Finance.

In 2007, the Province helped Whistler pay for the costs of the 2010 Olympic and Paralympic Winter Games by introducing an additional Resort Accommodation Tax in the area.

The City of Vancouver, Destination Vancouver and the Province have agreed to a Major Events MRDT of 2.5% over seven years to help pay for the soccer matches. 

The new Major Events MRDT is in addition to the long-standing MRDT that applies to short-term accommodations in more than 60 areas in B.C.

This MRDT will kick in on February 1, 2023. It is estimated that the temporary tax could generate $230 million in revenue over the seven years.

In March of last year, the Province estimated that Vancouver’s incremental expenses associated with the FIFA World Cup will be approximately $230 million. This estimate included recognition of a significant inflation outlook.

The tax will be a tool for communities to help significantly bolster the opportunity of international visitation to the province.

Vancouver Mayor Ken Sim, who travelled to Qatar for the 2022 FIFA World Cup after he was sworn in, welcomed the tax.

“Vancouver has welcomed the world on many occasions, but this global celebration of soccer and national pride is an extraordinary opportunity. The economic impacts and benefits to Vancouver will be felt in the leadup to the FIFA World Cup, throughout the event and long after the final whistle blows in 2026,” said Sim.

Destination BC estimates that the FIFA World Cup opportunity could result in an increase of 269,000 visitors with approximately 50% from outside Canada and the United States.

“The Major Events MRDT will remove barriers for communities interested in hosting sporting and other events of international reach, and this will support the tourism sector in the long term,” said Lana Popham, Minister of Tourism, Arts, Culture and Sport.