What is the Passenger Vehicle Rental Tax?
The Passenger Vehicle Rental Tax (PVRT) is an additional tax applied to Modo bookings exceeding 8 hours, affecting about one in seven bookings. Understanding PVRT ensures transparency in your Modo billing, allowing you to plan and optimize your bookings accordingly. Here's a breakdown to help you grasp it:
Tax Breakdown:
- Modo bookings are subject to a 12% sales tax (5% GST and 7% PST).
- Bookings over 8 hours incur a third tax, the PVRT.
- The PVRT is applicable to every carshare operating in BC, including services like Evo.
Booking Duration Matters:
- Most Modo bookings are 8 hours or less which mean they are exempt from PVRT.
- PVRT applies to the final length of your booking. If you return a car an hour early from a 9-hour booking, it becomes an 8-hour booking with no PVRT.
PVRT Calculation:
- PVRT is $1.50 per day (24h), added by the provincial government.
- The federal government then charges 5% GST on the total PVRT amount.
Examples:
- For a two-day booking, PVRT would cost $3.00, with an additional $0.15 in GST.
Exception:
- Surprisingly, there's no PVRT for bookings of 28 days or more.
- Extending a booking by 15 minutes to avoid PVRT on a 28-day booking can save costs.
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