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
XXXXX
XXXXX
XXXXX
Case Number: 106915
Business Number: XXXXX
February 4, 2009
Subject:
GST/HST RULING
XXXXX.
Dear XXXXX:
We are in receipt of the letter of your authorized representative dated XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to supplies made by the XXXXX (the Society).
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
Statement of Facts
We understand that:
1. The Society was incorporated to organize, manage, promote and conduct the XXXXX
2. Your representative has indicated that the Society meets the definition of a "non-profit organization", as that term is defined in subsection 123(1).
3. The Society's GST/HST number is XXXXX.
4. The Society will sell admission tickets to the XXXXX.
5. The Society will sell admission tickets XXXXX. These XXXXX will include paid professional participants. The advertising and promotional material for XXXXX will feature the paid professional participants.
6. The Society will sell admission tickets to XXXXX events that will include paid professional participants. The advertising and promotional material for these events will feature the paid professional participants.
7. The price for the admission tickets XXXXX, will exceed $1.00.
8. XXXXX
9. XXXXX
10. The Society will sell XXXXX XXXXX. The Society will normally sell the goods for a price above its direct cost.
Ruling Requested
You have asked us to confirm the following:
i) The Society's supply of the admission tickets XXXXX is a taxable supply and will be subject to the GST.
ii) The Society's supply of admission tickets to XXXXX events is a taxable supply and will be subject to GST.
iii) The Society's supply of the admission tickets and passes, with the exception of those noted above XXXXX will be an exempt supply.
In our recent telephone conversation with your representative it was further requested that we confirm that:
iv) The Society's supply of the merchandise, as described in paragraph 10 above, is a taxable supply and will be subject to GST.
v) XXXXX.
vi) XXXXX.
Ruling Given
Based on the facts set out above, we rule that:
i) The supply of all the admission tickets XXXXX is a taxable supply by the Society and subject to GST at the rate of 5%.
ii) The supply of all the admission tickets XXXXX is a taxable supply by the Society and subject to GST at the rate of 5%.
iii) The supply of the admission tickets and passes XXXXX, is an exempt supply by the society pursuant to section 11 of Part VI of Schedule V.
iv) The supply of the merchandise XXXXX is a taxable supply by the Society and subject to GST at the rate of 5%.
XXXXX:
v) XXXXX.
vi) 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
Section 11 of Part VI of Schedule V exempts the following type of supply:
A supply of a right to be a spectator at a performance, athletic event or competitive event, where all or substantially all of the performers, athletes or competitors taking part in the performance or event do not receive, directly or indirectly, remuneration for doing so (other than a reasonable amount as prizes, gifts or compensation for travel or other expenses incidental to the performers', athletes' or competitors' participation in the performance or event, or grants paid by a government or a municipality to the performers, athletes or competitors), and no advertisement or representation in respect of the performance or event features participants who are so remunerated, but does not include a supply of a right to be a spectator at a competitive event in which cash prizes are awarded and in which any competitor is a professional participant in any competitive event.
None of the XXXXX are remunerated for taking part XXXXX. Further, cash prizes are not awarded XXXXX As a result, the supply of the right to be a spectator XXXXX is an exempt supply pursuant to section 11 of Part VI of Schedule V.
Given that XXXXX events will include paid professional participants and the advertising and promotional material for these events will feature the paid professional participants, the supply is not exempt under section 11 of Part VI of Schedule V. Since the price of each admission will exceed $1.00, the supply of the right to be a spectator (i.e., the admission tickets) at these events by the Society will be subject to GST at the rate of 5%.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-946-7962. 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,
Michael Mavis
Charities, Non-Profit Organizations and Educational Services Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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