Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
GST/HST Rulings Directorate
Place de Ville, Tower A, 11th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 220592
Attention: […]
Dear [Client]:
Subject: GST/HST RULING
[…][Whether a Conference is a foreign convention]
Thank you for your letter of [mm/dd,yyyy], concerning whether the […][Conference] qualifies as a foreign convention for purposes of the goods and services tax/harmonized sales tax (GST/HST).
The HST applies in the participating provinces at the following rates: 13% in Ontario; and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
STATEMENT OF FACTS
We understand the facts to be as follows:
1. […][[…](the Conference)] will be held in […][Canada], from [mm/dd] to [mm/dd,yyyy], and will bring together [the Conference’s audience of researchers] for […].
2. According to the [Conference] website […]:
- […] .
- The [Conference] is being organized under the leadership of the conference co-chairs [Person A][(Resident of Canada)] and [Person B][(Resident of Canada)] […].
- The members of the […] committees are […][one non-resident and [#] Canadian residents)].
- The members of the […] committee are […][[#] Canadian residents].
- The members of the […] committee are […][[#] non-residents and [#] Canadian residents].
3. In your submissions of [mm/dd,yyyy] and [mm/dd,yyyy], you made the following statements in respect of the [Conference]:
- […][Information about participants and the frequency of conference meetings] […].
- […][Conference leadership] is made of […] [#] individuals; […][[#] Canadians and one non-resident].
- [Leaders of the Conference who are] not a registered entity in […] [intend] to organize and sponsor the [Conference].
- The purpose of the [Conference] is not to provide any of the following:
i) to provide any type of amusement, entertainment or recreation,
ii) to conduct contests or games of chance, or
iii) to transact the business of the convenor or attendees in the course of a trade show that is open to the general public, or otherwise than in the course of a trade show.
- In the submission of [mm/dd,yyyy], you stated that the [Conference] is anticipating that over [#] people will attend and it is reasonably expected that […][greater that 65%] the paid admissions will be non-residents as [the organization] has a large […] following [from outside of Canada].
- In your subsequent submission of [mm/dd,yyyy], you stated that […][based on expected participation by domestic membership and other international delegates, the Conference is projected to have] a […][greater than 75%] non-Canadian participation rate.
- According to the Program […] you submitted, the [Conference] will consist of tutorials and pre-conference workshops on the first day, [#] keynote lectures, […], [#] […]-minutes blocks for multiple parallel sessions, [#] […]-minutes for poster sessions and exhibitors and one for a special event on […][a specific field of research], one […]-minute invited symposium and a closing ceremony with awards.
- You also made a statement that form IT-459, Adventure or Concern in the Nature of Trade would state a case for the [Conference] as GST/HST exempt, as an Adventure or Concern in the Nature of Trade.
RULING REQUESTED
You would like to know whether:
1. The [Conference] is a foreign convention?
2. GST/HST has to be collected in relation to the [Conference]?
3. A rebate for GST/HST paid on the convention facility and related convention supplies is available?
RULING GIVEN
Based on the facts set out above, we rule that:
1. The [Conference] is not a foreign convention.
2. GST/HST has to be collected on the taxable supplies in relation to the [Conference].
3. A rebate for the GST/HST paid on the convention facility and related convention supplies is not available as the [Conference] is not a foreign convention.
EXPLANATION
Foreign convention
For GST/HST purposes, conventions held in Canada are classified either as a foreign convention or a domestic convention. The distinction between these types of conventions is important as the application of the GST/HST is different for each type.
A “domestic convention” is not specifically defined in the ETA but is simply, a convention held in Canada that is not a foreign convention. Whether an event is a foreign convention for GST/HST purposes is based on whether the requirements in certain definitions in subsection 123(1) are met.
"Convention" means a formal meeting or assembly that is not open to the general public, but does not include a meeting or assembly the principal purpose of which is:
(a) to provide any type of amusement, entertainment or recreation,
(b) to conduct contests or games of chance, or
(c) to transact the business of the convenor or attendees
(i) in the course of a trade show that is open to the general public, or
(ii) otherwise than in the course of a trade show.
"Foreign convention" means a convention where:
(a) at least 75% of the admissions to which are, at the time the sponsor of the convention determines the amount to be charged as consideration therefor, reasonably expected to be supplied to non-resident persons, and
(b) the sponsor of which is an organization whose head office is situated outside Canada or, where the organization has no head office, the member, or majority of members, of which having management and control of the organization is or are non-resident.
"Sponsor", in respect of a convention, means the person who convenes the convention and supplies admissions to it.
“Person” means an individual, a partnership, or corporation, the estate of a deceased individual, a trust, or a body that is a society, union, club, association, commission or other organization of any kind.
Based on the facts, the [Conference] is a formal meeting that is not open to the general public and none of the exclusions in the definition of convention applies. However, we are unable to confirm if the [Conference] has a sponsor as defined above so the definition of a foreign convention is not met.
Does GST/HST have to be collected?
Property and services supplied in Canada by a GST/HST registrant in the course of a commercial activity are subject to GST/HST, unless they are specifically exempted from tax under Schedule V, zero-rated under Schedule VI, or relieved under a particular provision of the ETA. There are special rules under section 189.2 for foreign conventions and section 167.2 for domestic conventions.
Rules under section 189.2 for sponsors of foreign conventions with respect to supplies of admissions to attendees and supplies of exhibition space and related convention supplies to exhibitors do not apply to the [Conference] since it is considered to be a domestic convention.
Rules under section 167.2 for sponsors of domestic conventions with respect to supplies of admissions to non-resident attendees or supplies of exhibition space to non-resident exhibitors do not apply as there is no sponsor for the [Conference].
The admission and exhibition space fees collected in respect of the [Conference] are taxable supplies and therefore, GST/HST is required to be collected.
Every non-resident person who enters Canada for the purpose of making taxable supplies of admissions in respect of a place of amusement, a seminar, an activity or an event in Canada (e.g., the Congress) is required to register for the GST/HST before making any such supply.
These persons, whose only business carried on in Canada is the making of such supplies, are not eligible for small supplier status, even if the total value of the taxable supplies they make does not exceed the small supplier threshold of $30,000 ($50,000 in the case of a public service body).
For more information with respect to domestic conventions and registration please see GST/HST Memorandum 27.2, Conventions.
Rebate for foreign conventions
Under subsection 252.4(1) of the ETA, a sponsor of a foreign convention may claim a rebate in respect of the tax it paid on:
- a supply of property or services relating to the convention made by a registrant organizer of the convention,
- a supply of property or services that are acquired for consumption, use or supply by the sponsor as related convention supplies or of the convention facility made by a registrant who is not the organizer of the convention, or
- property that is imported or brought into a participating province by the sponsor, or an imported taxable supply of property or services that are acquired by the sponsor, for consumption, use or supply by the sponsor as related convention supplies.
Under subsection 252.4(3) of the ETA, a non-registered organizer of a foreign convention may claim a rebate in respect of the tax it paid on:
- a supply of property that is the convention facility,
- a supply of related convention supplies, other than property or services that are food or beverages or are supplied under a contract for catering, that are acquired, imported or brought into a participating province for use at the convention, and
- 50% of the tax paid on a supply of related convention supplies that are food or beverages or are supplied under a contract for catering.
“Organizer” of a convention means a person who acquires the convention facility or related convention supplies and who organizes the convention for another person who is the sponsor of the convention.
The rebates under section 252.4 are not available as the [Conference] is not a foreign convention.
A rebate is available to non-registered non-resident exhibitors under section 252.3 for the GST/HST paid on a supply of exhibition space at a convention and the GST/HST paid in respect of related convention supplies. The exhibitor must have acquired the exhibition space exclusively for use as a site for the promotion, at a convention, of property or services supplied by, or a business of, the exhibitor.
When referring to supplies made to exhibitors, "related convention supplies" means property or services acquired, imported or brought into a participating province by the exhibitor exclusively for consumption, use or supply by the exhibitor in connection with a convention, but does not include:
- transportation services, other than a chartered service acquired by the person solely for the purpose of transporting attendees of the convention between any of the convention facilities, places of lodging of the attendees or transportation terminals,
- entertainment, or
- property or services that are food or beverages or are supplied to the person under a contract for catering.
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the Canada Revenue Agency (CRA) is bound by the ruling(s) given in this letter provided that: none of the issues discussed in the ruling(s) are currently under audit, objection, or appeal; no future changes to the ETA, regulations or the CRA’s interpretative policy affect its validity; and all relevant facts and transactions have been fully and accurately disclosed.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 343-553-3972. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
David Phoenix, CPA, CGA
Services and Intangibles Unit
General Operations and Border Issues Division
GST/HST Rulings Directorate
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