Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
Case Number: 105425
Attention:XXXXX
March 31, 2009
Subject:
GST/HST RULING
Eligibility for Rebate under the Foreign Convention and Tour Incentive Program
Dear XXXXX:
Thank you for XXXXX, to the Ottawa GST/HST Rulings Centre concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to events held by XXXXX (the Company). Your request has been transferred to our office for reply. We apologize for the delay in our response.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
Statement of Facts
1. We understand that the Company is an American business that is not registered for the GST/HST.
2. The Company holds events in Canada at different XXXXX each year. In XXXXX, the Company held an XXXXX at the XXXXX (the Hotel) in XXXXX.
3. You provided portions of the XXXXX (the Contract) between the Company and the Hotel. The program dates noted in the Contract are XXXXX toXXXXX.
4. Under the Contract, the Hotel agreed to hold a number of rooms on specific dates for the Company, and to offer these rooms to the Company at special rates. The special rates did not include meals.
5. The final agreed upon numbers of rooms were as follows:
• XXXXX
• XXXXX
• XXXXX
• XXXXX
6. According to the Contract, the charges for the room for each attendee of the Company's group would be applied to the Company's Master Account, while each individual was responsible for all their own incidentals and individual meal charges.
7. The Company also booked a meeting room under the Contract for the dates XXXXX; the room was offered on a complimentary basis to the Company. The room was also used to serve a breakfast buffet each day (starting at 7:00 most days). Charges for coffee breaks, banquets and other services requested by the Company or its group organizer were charged to the Company's Master Account.
8. The Company's Web site (XXXXX) described the XXXXX offered by the Company in XXXXX on these dates.
9. The XXXXX was offered during the week of XXXXX, and was open to all levels of XXXXX. XXXXX
10. The XXXXX cost $XXXXX. Rooms were offered on a double room occupancy basis, with a single room supplement of $XXXXX. A daily breakfast buffet was included, with a daily buffet dinner meal option for an additional $XXXXX.
11. The XXXXX was offered during the week of XXXXX
12. Daily ground transportation was provided to the XXXXX sites selected by the XXXXX
13. The XXXXX cost $XXXXX; it cost an additional $XXXXX to bring a spouse or XXXXX. Single rooms were available to the attending XXXXX. A daily breakfast buffet was included, with a daily buffet dinner meal option for an additional $XXXXX.
Ruling Requested
You would like to know whether the Company qualifies for a rebate under the Foreign Convention and Tour Incentive Program (FCTIP) with respect to the XXXXX.
Ruling Given
Based on the facts set out above, we rule that the Company does not qualify for a rebate under the FCTIP with respect to the XXXXX.
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 ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.
Explanation
Under the FCTIP, a rebate is available to the sponsor of a foreign convention held in Canada with respect to the GST/HST paid on certain properties and/or services used in the course of the convention.
As defined in subsection 123(1) of the ETA, a "foreign convention" means a convention
(a) at least 75% of the admissions to which are, at the time the sponsor of the convention determines the amount to be charged as consideration therefor, reasonably expected to be supplied to non-resident persons, and
(b) the sponsor of which is an organization whose head office is situated outside Canada or, where the organization has no head office, the member, or majority of members, of which having management and control of the organization is or are non-resident.
A "convention" means a formal meeting or assembly that is not open to the general public, but does not include a meeting or assembly the principal purpose of which is
(a) to provide any type of amusement, entertainment or recreation,
(b) to conduct contests or games of chance, or
(c) to transact the business of the convenor or attendees
(i) in the course of a trade show that is open to the general public, or
(ii) otherwise than in the course of a trade show.
In any transaction, it is important to first properly characterize what is being supplied in order to determine how tax applies to that particular transaction. The Company's XXXXX would be considered workshops for GST/HST purposes. Given the nature and purpose of the Company's XXXXX, these events are not regarded as "conventions" for GST/HST purposes. Consequently, the XXXXX cannot be "foreign conventions" and the Company does not qualify for a rebate under the FCTIP in respect of these events.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-952-7909. 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,
Jacqueline Russell, CGA
Services and Intangibles Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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