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: 148354
Business Number: [...]
June 12, 2013
Dear [Client]:
Subject: GST/HST RULING
FCTIP - Tour Package Eligibility
Thank you for your fax of October 29, 2012, concerning the eligibility of a tour 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 (effective April 1, 2013) and 15% in Nova Scotia. The GST applies in the rest of Canada at the rate of 5%.
Effective April 1, 2013, the 12% HST in British Columbia has been replaced by the 5% GST and a provincial sales tax.
Statement of Facts
Based on your fax of October 29, 2012, our telephone conversation with [...], we understand:
1. [...] (hereafter, the Tour Operator) is registered for GST/HST purposes under Business Number [...].
2. The Tour Operator assembles and markets a [...] (hereafter, the Tour) which takes place from [mm] to [mm]. The Tour is sold to persons that are not resident in Canada (hereafter, non-resident persons).
3. The Tour includes [...] short-term accommodation in Canada at [...]. The Tour includes other elements such as [...].
4. The Tour includes services such as transportation and guide services.
5. The Tour Operator sells the Tour for an all-inclusive price.
6. The Tour Operator pays or credits an amount on account of the FCTIP rebate to non-resident persons at the point of sale.
Ruling Requested
You would like to know if the Tour is an eligible tour package for purposes of the FCTIP.
Ruling Given
Based on the facts set out above, we rule that the Tour is an eligible tour package 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 Tour is an eligible tour package for purposes of the FCTIP since it is a tour package that includes short-term and/or camping accommodation in Canada, at least one service, and it 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 payable on an eligible tour package purchased from a GST/HST registrant. Generally, a non-resident person is entitled to a rebate where it:
• pays GST/HST on the purchase of the eligible tour package; and
• meets 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 GST/HST Guide RC4160, Rebate for Tour Packages, Foreign Conventions, and Non-Resident Exhibitor Purchases.
A non-resident person that is entitled to a rebate could file form GST115, GST/HST Rebate Application for Tour Packages, to claim the rebate. However, since the Tour Operator pays or credits an amount on account of the rebate to which the non-resident person may be entitled, the non-resident person is considered to have received its rebate and should not file Form GST115.
Before paying or crediting an amount on account of the rebate to the non-resident person at the point of sale, the Tour Operator should verify that the non-resident person is entitled to the rebate. In addition, the Tour Operator must meet other conditions and restrictions found in GST/HST Guide RC4036, GST/HST Information for the Travel and Convention Industry.
Where the Tour Operator pays or credits an amount on account of the rebate, the Tour Operator must maintain documentary evidence that the non-resident person would be entitled to the rebate if the non-resident person had paid the GST/HST and filed a rebate application with the Canada Revenue Agency (CRA). Examples of forms that may be used to obtain this evidence are included in Appendices A to D to GST/HST Memorandum 27.3, Foreign Convention and Tour Incentive Program - Rebate for Eligible Tour Packages and Accommodation Supplied as Part of Eligible Tour Packages.
This ruling should not be construed as being a declaration by the CRA that a particular non-resident person is entitled to a rebate.
More information on the FCTIP is available at www.cra.gc.ca/visitors, including the forms and publications mentioned in this letter.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 604-658-8528. 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,
Rosalind Erceg
Services and Intangibles Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
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