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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