Home sharing platform Airbnb and the Government of Quebec have shook hands on the first tax remittance agreement in Canada.
The agreement allows Airbnb to collect the lodging tax on behalf of its hosts.
It kicks off in October 2017 when Airbnb will automatically collect and remit the 3.5% tax.
The company says it has had nearly one million guest arrivals in the past year.
"As the first-of-its-kind tax agreement in this country, this is a landmark announcement and defining moment for Airbnb in Canada," said Alex Dagg, public policy manager for Canada.
"The agreement in Quebec is an example of how Airbnb and government officials can work together as partners."
Airbnb said there are more than 22,000 active hosts residing in Quebec who each make about C$2,600 annually on average.
"The agreement announced today is a positive step toward the future and development of tourism in Quebec, since it will make it possible to adapt the taxation system to the new collaborative and digital economy," said Julie Boulet, minister of tourism and minister responsible for the Mauricie region.
