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: 148701
June 28, 2013
Dear [Client]:
Subject: GST/HST RULING
FCTIP - Tour Package Eligibility
Thank you for your fax of November 2, 2012, 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 (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Effective April 1, 2013, the 12% HST in British Columbia has been replaced by the 5% GST and a provincial sales tax.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 November 2, 2012, our telephone conversation [...], we understand:
1. [...] (hereafter, the Non-Resident Tour Operator) is not resident in Canada. The Non-Resident Tour Operator is not registered for GST/HST purposes.
2. The Non-Resident Tour Operator purchased short-term accommodation in Canada and assembled the accommodation in a tour which it marketed as [...] (hereafter, the Tour) which took place from [mm/dd] to [dd/yyyy]. The Tour was sold to persons that are not resident in Canada (hereafter, non-resident persons).
3. The Tour included [...] nights short-term accommodation in Canada in [...]. The Tour included other elements such as [...].
4. The Tour included services such as [...] services.
5. The Non-Resident Tour Operator sold the Tour for an all-inclusive price.
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 tour operator that is not registered for GST/HST purposes may be entitled to a rebate of 100% of the GST/HST payable on short-term and/or camping accommodation in Canada purchased from a GST/HST registrant. Generally, a non-resident tour operator is entitled to a rebate where it:
• pays GST/HST on the purchase of the short-term and/or camping accommodation in Canada;
• assembles the accommodation in an eligible tour package which it sells to non-resident persons; and
• meets all other conditions and restriction set out in the ETA. 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 tour operator that is entitled to a rebate should file form GST115, GST/HST Rebate Application for Tour Packages, to claim the rebate. When filing Form GST115 with the Canada Revenue Agency, a copy of this ruling may be attached as evidence that the Tour is an eligible tour package for purposes of the FCTIP.
This ruling should not be construed as being a declaration by the Canada Revenue Agency that the Non-Resident Tour Operator 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 collect 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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