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.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 162497
Business Number: […]
Dear [Client]:
Subject: GST/HST RULING
FCTIP - Tour Package Eligibility
Thank you for your facsimile of May 29, 2014, concerning the eligibility of certain tours for purposes of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) rebate provided under the Foreign Convention and Tour Incentive Program (FCTIP).
The HST applies in the participating provinces at the following rates: 13% in Ontario, New Brunswick and Newfoundland and Labrador, 14% in Prince Edward Island and 15% in Nova Scotia. 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
Based on your [correspondence], we understand the following:
1. […] (hereafter, the Tour Operator) is registered for GST/HST purposes under Business Number […].
2. The Tour Operator assembles guided hunting tours, which are marketed as […](hereafter, Tour 1), […](hereafter, Tour 2) and […](hereafter, Tour 3) and take place between January and November when the hunting seasons for each respective game are open.
3. Tour 1 takes place starting [mm/dd] of each year. The tour is sold to persons that are not resident in Canada (hereafter, non-resident persons).
4. Tour 1 includes between [#] and [#] nights of accommodation in Canada. Accommodation for Tour 1 is typically provided in […].
5. Tour 1 includes services such as a hunting guide service, a service of skinning and dressing of game and transportation services during the hunt, […].
6. The Tour Operator sells Tour 1 for an all--inclusive price.
7. The Tour Operator pays or credits an amount on account of the FCTIP rebate to the non-resident persons at the point of sale for Tour 1.
8. Tour 2 takes place between [mm] and [mm] of each year. The tour is sold to non-resident persons.
9. Tour 2 includes between [#] and [#] nights of accommodation in Canada. Accommodation for Tour 2 is typically provided in […]
10. Tour 2 includes services such as a hunting guide service, a service of skinning and dressing of game and transportation services during the hunt, […]
11. The Tour Operator sells Tour 2 for an all--inclusive price.
12. The Tour Operator pays or credits an amount on account of the FCTIP rebate to the non--resident persons at the point of sale for Tour 2.
13. Tour 3 takes place between [mm] and [mm] of each year. The tour is sold to non-resident persons.
14. Tour 3 includes between [#] and [#] nights of accommodation in Canada. Accommodation for Tour 3 is typically provided in […].
15. Tour 3 includes services such as a hunting guide service and transportation services during the hunt, […].
16. The Tour Operator sells Tour 3 for an all--inclusive price.
17. The Tour Operator pays or credits an amount on account of the FCTIP rebate to the non--resident persons at the point of sale for Tour 3.
RULING REQUESTED
You would like to know if Tour 1, Tour 2 and Tour 3 are each considered an eligible tour package for purposes of the FCTIP.
RULING GIVEN
Based on the facts set out above, we rule that Tour 1, Tour 2 and Tour 3 are each eligible tour packages for purposes of the FCTIP.
This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the Excise Tax Act (ETA), regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.
EXPLANATION
The Tours are eligible tour packages for purposes of the FCTIP since each of the tour packages includes short-term accommodation in Canada, at least one service, and is sold for an all--inclusive price.
ADDITIONAL INFORMATION
Under the FCTIP, a non-resident person may be entitled to a rebate of up to 50% of the GST/HST paid on an eligible tour package purchased from a GST/HST registrant. Generally, a non-resident person is entitled to a rebate where:
* they have paid GST/HST on the purchase of the eligible tour package; and
* meet all other conditions and restrictions set out in the ETA. Different conditions and restrictions may apply, depending on whether the non--resident person is an individual, a business, an organization, or a tour operator. Information on these conditions and restrictions can be found in Booklet RC4160, Rebate for Tour Packages, Foreign Conventions, and Non--Resident Exhibitor Purchases.
Normally, a non--resident person that is entitled to a rebate would file Form GST115, GST/HST Rebate Application for Tour Packages, to claim the rebate. However, if the Tour Operator pays or credits to the non-resident person an amount on account of the rebate to which the non--resident person would be entitled, the non-resident person is no longer entitled to any GST/HST rebate in respect of the tour package and should therefore not file Form GST115.
The Tour Operator should verify that a non--resident person is entitled to the rebate before paying or crediting an amount on account of the rebate to the non--resident person at the point of sale.
This ruling should not be construed as being a declaration by the Canada Revenue Agency that a particular non-resident person is entitled to a rebate.
More information regarding the FCTIP is available at www.cra.gc.ca/visitors, including the forms and publications cited in this letter.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-954-9700. 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,
Ryan Fullarton
Services and Intangibles Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
Email this Content