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.
GST/HST Rulings Directorate
Place de Ville, Tower A, 11th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 233217
Dear [Client]:
Subject: GST/HST RULING
[…][Whether a Conference is a foreign convention]
Thank you for your letter of [mm/dd,yyyy], concerning whether an upcoming event qualifies as a foreign convention for purposes of the goods and services tax/harmonized sales tax (GST/HST).
The HST applies in the participating provinces at the following rates: 13% in Ontario; and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
STATEMENT OF FACTS
We understand the facts to be as follows:
1. […](the Conference) is an event that was scheduled to take place in [City A, Province A] on [mm/dd-dd,yyyy]. The Conference has been postponed until [mm/dd – mm/dd, yyyy], in order to maximize possible in-person attendance.
2. The Conference will bring together […][the Conference’s audience], to showcase the […][field of research].
3. […] [Description of the Organization’s structure, field of research, head office location in a city outside Canada and regional associations].
4. […][Background information on the field of research].
5. […].
6. […]
7. […][Description of the planning and implementation of the field of research activities].
8. According to the agenda you submitted, the Conference will consist of […][numerous] sessions on […] and […], a […] plenary presentation, an opening and welcomes session with keynote speakers, [#] plenary sessions, [#] parallel sessions, [#] brainstorming sessions and one session on the future [field of research] priorities, [#] sessions on […], one session on […], and [#] sessions for poster and sponsors exhibit. Sessions in the evening are planned for a final […][conference] icebreaker with […] performance, […] and dinner with panel. The last day has [#] sessions for a […] meeting on the [conference] outcomes and future [field of research] priorities. The plenary sessions are on topics such as […] and a closing panel discussion.
9. In your incoming letter of [mm/dd, yyyy], you stated [X] […] is the [sponsor][…] and […][Y] is the Canadian host of the Conference. You are expecting [# - #] delegates, with more than 75% of these delegates coming from outside of Canada.
10. In your submission of [mm/dd,yyyy], you indicated that the [X] is the sponsor and they have entered into an agreement with [Y] who is acting as the organizer of the Conference.
11. Relevant provisions of the Letter of Agreement between [X] and [Y] include: […]
12. Included with your submission of [mm/dd/yyyy], was estimates of participants for the Conference under various scenarios for in-person attendance prepared at the time the fees/budget for the Conference were decided. The three scenarios outline the expected attendance prior to the COVID-19 pandemic, with no border restrictions, and with attendance limited to less than [#] participants. In all three scenarios outlined more than 75% of participants are expected to be non-residents. During our telephone conversation on [mm/dd/yyyy], you confirmed that including virtual attendance for the event happened a few months later.
13. The first […][Conference], held in […][a City outside Canada] at the [X] headquarters in [mm yyyy], was attended by [#] participants, […][and more than 90% of those attending] were non-residents of Canada.
RULING REQUESTED
You would like to know whether:
1- The Conference is a foreign convention?
2- The Conference would still qualify as a foreign convention if it moves from fully in-person attendance to a hybrid (partially in-person and partially virtual attendance) or to a 100% virtual attendance?
RULING GIVEN
Based on the facts set out above, we rule that:
1- The Conference is a foreign convention for GST/HST purposes.
2- The status of the Conference as a foreign convention will not change if in-person attendance is required to move to a hybrid or 100% virtual attendance.
ADDITIONAL INFORMATION
The sponsor of a convention is defined under subsection 123(1) to mean the person who convenes the convention and supplies admissions to it. The sponsor must maintain documents supporting their calculation of the percentage of admissions that are reasonably expected to be supplied to non-residents in order to prove that a convention is a foreign convention, and make these documents available to the Canada Revenue Agency (CRA) on request. Under subsection 286(1), these documents must be kept in Canada unless the sponsor gets permission from the CRA to maintain them outside Canada.
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the Canada Revenue Agency (CRA) is bound by the ruling(s) given in this letter provided that: none of the issues discussed in the ruling(s) are currently under audit, objection, or appeal; no future changes to the ETA, regulations or the CRA’s interpretative policy affect its validity; and all relevant facts and transactions have been fully and accurately disclosed. The interpretation(s) given in this letter, including any additional information, is not a ruling and does not bind the CRA with respect to a particular situation. Future changes to the ETA, regulations, or the CRA's interpretative policy could affect the interpretation(s) or the additional information provided herein.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 343-553-3972. 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,
David Phoenix, CPA, CGA
Services and Intangibles Unit
General Operations and Border Issues Division
GST/HST Rulings Directorate
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