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]
October 26, 2012
Case Number: 146164
Business Number: […]
Dear [Client]:
Subject: GST/HST RULING
FCTIP – Tour Package Eligibility
Thank you for your letter of June 25, 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).
HST applies at the rate of 15% in Nova Scotia, 13% in Ontario, New Brunswick, and Newfoundland and Labrador, and 12% in British Columbia. GST applies at the rate of 5% in the remaining provinces and territories.
STATEMENT OF FACTS
Based on your letter of June 25, 2012, the documentation you provided, your Web site and our telephone conversation of September 20, 2012, we understand:
1. […] (hereafter, the Tour Operator) is registered for GST/HST purposes under Business Number […].
2. The Tour Operator assembles a tour which it markets as […] (hereafter, Tour 1) and which takes place from [mm] through [mm]. The tour is sold to persons that are not resident in Canada (hereafter, non-resident persons).
3. Tour 1 includes a total of [#] nights short-term accommodation in Canada […] [describes location, accommodation and amenities]
4. Tour 1 includes two services: a fish processing service, and a passenger transportation service consisting of a flight in and out of camp.
5. The Tour Operator sells Tour 1 for an all--inclusive price.
6. The Tour Operator also assembles another tour which it markets as […] (hereafter, Tour 2) and which takes place from [mm] through [mm]. Tour 2 is sold to non-resident persons.
7. Tour 2, may include anywhere from […] to […] nights short-term accommodation in Canada […] [describes location, accommodation and amenities]
8. Tour 2 includes one service: a fish processing service.
9. The Tour Operator sells Tour 2 for an all--inclusive price. In connection with Tour 2, the Tour Operator sells a separate passenger transportation service consisting of a flight in and out of camp for a separate price. The passenger transportation service is a separate supply for GST/HST purposes and is not part of the supply of Tour 2.
10. The Tour Operator does not pay or credit 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 Tour 1 and Tour 2 are eligible tour packages for purposes of the FCTIP.
RULING GIVEN
Based on the facts set out above, we rule that Tour 1 and Tour 2 are 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
Tour 1 and Tour 2 are eligible tour packages for purposes of the FCTIP since they are tour packages that include short--term and/or camping accommodation in Canada, at least one service, and they are sold for an all--inclusive price.
Please note that the passenger transportation service in Tour 2 is not part of the eligible tour package. Therefore, non-residents who purchase Tour 2 are not entitled to a rebate of the GST/HST paid for the flight in and out of camp.
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 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 or the applicable enclosed confirmation letter may be attached as evidence that the tour is an eligible tour package for purposes of the FCTIP.
Neither this ruling nor either of the enclosed confirmation letters should be construed as being a declaration by the Canada Revenue Agency that a particular non-resident person is entitled to a rebate.
More information on the FCTIP is available at www.cra.gc.ca/visitors.
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,
Michèle Routhier
Services and Intangibles Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
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