21 August 2006 GST/HST Interpretation 79524 - Application of the GST to a Funeral Arrangement

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.

Dear XXXXX:

Thank you for your fax XXXXX concerning your eligibility to claim a rebate of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) paid on short-term accommodation and on goods and services related to a foreign convention. Your request has been transferred from the XXXXX GST/HST Rulings Centre to the Services and Intangibles Unit of the General Operations and Border Issues Division for response. We apologize for the delay in responding to your request.

Effective July 1, 2006, the rate of the GST has been reduced from 7% to 6% and the rate of the HST from 15% to 14%. The new rates apply to supplies for which the GST/HST is paid on or after July 1, 2006, without having become payable before that date. Specific transitional rules apply to certain supplies, for example, real property. For more information on the transitional rules for the reduction of the GST/HST rate, please refer to Reduction in the Rate of the GST/HST - Questions and Answers (http://www.cra-arc.gc.ca/agency/budget/2006/gstrateqa-e.html) on the CRA Web site.

Statement of Facts

We understand that XXXXX (the Club) is not registered for GST/HST and has corporate offices in XXXXX USA. XXXXX.

The Club's XXXXX staff stayed at the XXXXX hotel XXXXX. The Club provided guest room accommodations, meeting rooms and catering to its staff at the hotel.

XXXXX meetings were held by XXXXX staff XXXXX. There was no formal agenda for the meetings. The meetings were attended by XXXXX staff members and only XXXXX were Canadians. These meetings were not open to the general public. XXXXX no contracts or agreements were entered into during the XXXXX meetings. XXXXX.

Ruling Requested

You would like to know if the Club is eligible for a short-term accommodation rebate and/or a foreign convention rebate XXXXX.

Ruling Given

Based on the facts set out above, we rule that provided the Club meets all the requirements, the Club is eligible for a short-term accommodation rebate. The Club is not eligible for a foreign convention rebate.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Goods and Services Tax Rulings. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal, that no future changes to the Excise Tax Act, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

Explanation

You qualify for a short-term accommodation rebate of GST/HST if you meet all of the following conditions:

•   your business is not a resident of Canada at the time you apply for the refund;

•   you paid GST/HST on eligible short-term accommodation;

•   the accommodation is made available to a non-resident individual (for example, an owner, an employee, or a customer of the business);

•   the total amount of your purchases (before tax) of eligible short-term accommodation on which you paid GST/HST is at least CAN$200;

•   we receive your refund application within one year after the last day that any GST/HST on the eligible short-term accommodation became payable;

•   each accommodation unit was provided to a non-resident individual for less than one month of continuous occupancy; and

•   an application for the refund was not submitted and will not be submitted by your business or representative for the same purchases.

You must file Form GST510, Application for Business Travel Tax Refund, copy enclosed, within one year after the last day that any GST/HST on the eligible short-term accommodation became payable and attach certain information to your application. For further information, see the enclosed GST/HST pamphlet, Tax Refund for Business Travel to Canada.

A sponsor (i.e., the convenor) of a foreign convention may be entitled to a rebate in respect of the GST/HST paid on the convention facility and related convention supplies if the meeting or assembly is a convention and the other requirements of the definition of a foreign convention are met.

For GST/HST purposes, a convention is a formal meeting or assembly that is not open to the general public. However, a convention does not include a meeting or assembly the principal purpose of which is to transact the business of the convenor or attendees unless the meeting or assembly is in the course of a trade show that is not open to the general public.

Since the Club's meetings are not held in the course of a trade show that is not open to the general public, the meetings do not qualify as a convention because the principal purpose of these meetings is to carry on business that is normally conducted by the Club at its place of business. Therefore, as the Club's meetings do not qualify as a convention, the meetings cannot be a foreign convention.

For your convenience, find enclosed a copy of GST/HST Memorandum 1.4, Goods and Services Tax Rulings.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (613) 954-9700.

Yours truly,

Michèle Routhier, CMA
Technical Analyst
Services and Intangibles Unit
General Operations & Border Issues Division
Excise and GST/HST Rulings Directorate

2006/08/11 — RITS 80137 — Federal Printed Book Rebate