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 : 119566
Attention: XXXXX XXXXX
December 15, 2009
Subject:
GST/HST INTERPRETATION
PROPOSED LAW/REGULATION
Dear XXXXX:
Thank you for your XXXXX of XXXXX, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the Foreign Convention and Tour Incentive Program (FCTIP).
The HST is proposed to come into effect in Ontario on July 1, 2010, at a rate of 13%, consisting of a 5% federal part (equivalent to the existing GST) and an 8% provincial part. The HST will use the same tax base and structure as the GST, with some exceptions.
The following interpretation is based on the draft legislation and should not be taken as a statement by the Canada Revenue Agency (CRA) that the law will be enacted in its current form.
Interpretation Requested
You would like to know how to calculate the proposed Ontario HST rebate for non-residents under the FCTIP.
Interpretation Given
As you know, the FCTIP, which replaced the Visitor Rebate Program, came into effect on April 1, 2007. The FCTIP provides GST/HST relief to non-residents for:
• all of the GST/HST paid on accommodation sold to non-resident tour operators that are not registered for the GST/HST and that include the accommodation in eligible tour packages sold to non-residents, and
• generally 50% of the GST/HST paid on eligible tour packages that are sold to non-resident consumers and non-resident organizations or businesses that are not registered for the GST/HST, including tour operators. The rebate calculation for eligible tour packages is based on the number of nights of short-term and/or camping accommodation in Canada included in the package.
Please refer to GST/HST Info Sheet GI-032, Non-Residents Purchasing Tour Packages: Rebate for Eligible Tour Packages, available at the CRA Web site at http://www.cra-arc.gc.ca/formspubs/typ/menu-eng.html.
Specifically, see example no. 5 in the Info Sheet, where a non-resident consumer and his family purchase eligible tour packages to travel in Canada for $8,000. They paid the HST at the rate of 13% on $8,000 or $1,040 (i.e. to travel in a participating Atlantic province). Ontario is proposing to adopt the existing legislation under the FCTIP, and therefore, in this example, the amount of the proposed Ontario HST rebate would also be $520 (i.e. 50% of $1,040) when the general calculation method is used.
The foregoing comments represent our general views on the subject matter of your request. Any change to the wording of the proposed legislation regarding the HST in Ontario, if enacted, could have an effect on the interpretation provided herein. These comments are not rulings and, in accordance with the guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, do not bind the CRA with respect to a particular situation.
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
UNCLASSIFIED
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