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: 152989r
Business Number: […]
Dear [Client]:
Subject: GST/HST RULING
Tournament Registration Fees
As part of our regular monitoring activities, we have recently conducted a review of rulings and interpretations issued on the subject of admissions to a place of amusement. As a result of this review, it has come to our attention that the GST/HST Interpretation addressed to, and concerning the operations of, […] (the Charity) dated [mm/dd/yyyy], contained incorrect information. We are issuing this ruling to correct the inaccuracies in the [mm/dd/yyyy], letter.
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
Our understanding of the facts as stated in the [mm/dd/yyyy] letter is as follows:
1. The Charity is a charitable organization that hosts […] tournaments […] [objective of the charity].
2. The format is […] [listed elements that form a single supply of a right to participate in a tournament].
3. […] [details of elements included in the supply].
4. Each participant pays a registration fee of $[…] and […].
5. […] [additional details of elements included in the supply].
6. The Charity is a registered charity for purposes of the Income Tax Act and therefore a charity for purposes of the ETA.
7. […].
RULING REQUESTED
You would like to know if the tournament registration fees in the course of the Charity’s fund-raising activity would be subject to GST/HST.
RULING GIVEN
Based on the facts set out above, we rule that the supply of a right to participate in a […] tournament made by the Charity is an exempt supply. The Charity is not required to collect the GST/HST on the tournament registration fees.
EXPLANATION
The supply made by the Charity described in the fact situation is a supply of a right to participate in a […] tournament and the registration fee is the consideration for that supply.
Section 1 of Part V.1 of Schedule V exempts supplies of property or a service made by a charity, unless specifically excluded under paragraphs (a) to (p) of that section. There are no exclusions in paragraphs (a) to (p) of section 1 of Part V.1 of Schedule V that would apply to a supply of a right to participate in a […] tournament. Therefore, the supply of a right to participate in a […] tournament made by the Charity is an exempt supply.
The interpretation given in the [mm/dd/yyyy] letter provided information on admissions to a place of amusement. This information is not pertinent to the fact situation described in that letter. The CRA would not characterize the registration fee described in the fact situation to be a right of entry or access to or attendance at a place of amusement (Footnote 1) .
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, CRA is bound by the rulings given in this letter provided that: none of the issues discussed in the rulings 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 613-952-0420. 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,
Trent MacDonald
Charities and Non-Profit Organizations Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate
FOOTNOTES
1 A “place of amusement” is defined in subsection 123(1) of the ETA in part as:
“any premises or place, whether or not enclosed, at or in any part of which is staged or held any:
(a) film, slide show, sound and light or similar presentation,
(b) artistic, literary, theatrical, musical or other performance, entertainment or exhibition,
(c) fair, circus, menagerie, rodeo or similar event, or
(d) race, game of chance, athletic contest or other contest or game,
and includes …any place, structure…the purpose of which is to provide any type of amusement or recreation.”
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