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.
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Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
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XXXXX
XXXXX
XXXXX
XXXXX
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Case Number: 95606
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XXXXX
XXXXX
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July 27, 2007
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Subject:
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GST/HST RULING
Eligibility for Accommodation Rebate
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Dear XXXXX:
Thank you for your letter XXXXX concerning your clients' eligibility to claim a rebate of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) paid on short-term accommodation under the Visitor Rebate Program (VRP).
This letter does not make any references to the HST, unless otherwise noted, since the supply takes place in XXXXX.
Statement of Facts
• XXXXX (the Company) is requesting a ruling on behalf of XXXXX (the Sponsor) who held XXXXX (the Convention) in XXXXX.
• The Company will act as agent for the non-resident individuals (i.e., persons who attended the Convention and their guests) in filing their rebate claims with the Canada Revenue Agency (the CRA). For this service, the Company will receive a fee from the non-resident individuals.
• Agreements before September 25, 2006:
The XXXXX:
• You have provided a copy of a XXXXX Agreement between the XXXXX Hotel XXXXX and the Sponsor that was entered into on XXXXX.
• The XXXXX agreed to hold a block of approximately XXXXX guestroom nights for use by attendees of the Convention and their guests. Pursuant to the agreement, the room rates for each type of room are confirmed and are applicable for the Convention. The guest room rates will be honoured for the entire stay of attendees and their guests during the Convention as well as two days prior and two days after the Convention.
• The XXXXX will identify attendees of the Convention and their guests by the group folio designation of XXXXX in the hotel folio.
• The attendees and their guests will pay for their own room, applicable taxes (including the GST) and incidentals incurred by them at the XXXXX.
• Pursuant to the agreement, the cut off date was XXXXX. Reservation requests received after the cut-off date were XXXXX.
The XXXXX:
• You have provided a copy of the XXXXX between the XXXXX Hotel XXXXX and the Sponsor that was entered into on XXXXX.
• The XXXXX agreed to hold a block of approximately XXXXX guestroom nights for use by attendees of the Convention and their guests. Pursuant to the agreement, the room rates for each type of room are confirmed and are applicable for the Convention. The guest room rates will be honoured for the entire stay of attendees and their guests during the Convention as well as two days prior and two days after the Convention.
• The XXXXX will identify attendees of the Convention and their guests by the group folio designation of XXXXX in the hotel folio.
• The attendees and their guests will pay for their own room, applicable taxes (including the GST) and incidentals incurred by them at the XXXXX.
• Pursuant to the agreement, the cut off date was XXXXX. Reservation requests received after the cut-off date were XXXXX.
The XXXXX:
• You have provided a copy of the XXXXX between the XXXXX Hotel XXXXX and the Sponsor that was entered into on XXXXX.
• The XXXXX agreed to hold a block of approximately XXXXX guestroom nights for use by attendees of the Convention and their guests. Pursuant to the agreement, the room rates for each type of room are confirmed and are applicable for the Convention. The guest room rates will be honoured for the entire stay of attendees and their guests during the Convention as well as two days prior and two days after the Convention.
• The XXXXX will identify attendees of the Convention and their guests by the group folio designation of XXXXX in the hotel folio.
• The attendees and their guests will pay for their own room, applicable taxes (including the GST) and incidentals incurred by them at the XXXXX.
• Pursuant to the agreement, the cut off date was XXXXX. Reservation requests, received from attendees of the Convention and their guests after the cut-off date, XXXXX.
The XXXXX:
• You have provided a copy of a XXXXX Agreement between the XXXXX Hotel XXXXX and the Sponsor that was entered into on XXXXX.
• The XXXXX agreed to hold a block of approximately XXXXX guestroom nights for use by attendees of the Convention and their guests. Pursuant to the agreement, the room rates for each type of room are confirmed and are applicable for the Convention. The guest room rates will be honoured for the entire stay of attendees and their guests during the Convention as well as two days prior and two days after the Convention.
• The attendees and their guests will pay for their own room, applicable taxes (including the GST) and incidentals incurred by them at the XXXXX.
• Pursuant to the agreement, the cut off date was XXXXX. Reservation requests, received from attendees of the Convention and their guests after the cut-off date, were XXXXX.
Agreements after September 25, 2006:
You have provided a copy of three agreements between the Sponsor and the following hotels:
• XXXXX.
At the time of the initial organization of the Convention, it was not foreseen that the number of registrations for the Convention would exceed the number of available guestrooms originally contracted for. The requirement for additional rooms did not become necessary until after September 25, 2006.
Ruling Requested
You would like to know if the non-resident attendees at the Convention and their guests are eligible for a rebate of GST paid on short-term accommodation under the VRP.
Ruling Given
Based on the facts set out above, we rule that the non-resident attendees and their guests who stayed at:
• the XXXXX and were identified under group folio designation XXXXX,
• the XXXXX and were identified under the group folio designation of XXXXX,
• the XXXXX and were identified under the group folio designation of XXXXX,
• the XXXXX and received the Convention group rate,
are eligible for a rebate of GST paid on short-term accommodation, provided that they meet all of the requirements.
We rule that the non-resident attendees and their guests, who stayed at the XXXXX are not eligible for the short-term accommodation rebate.
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 Excise Tax Act, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.
Explanation
General:
Under the VRP, a non-resident person is eligible for a rebate of the GST/HST paid in respect of short-term accommodation where the person meets the conditions for the rebate including:
(a) the non-resident person is the recipient of a supply made by a registrant of short-term accommodation;
(b) the short-term accommodation is acquired by the person otherwise than for supply in the ordinary course of a business of the person of making such supplies; and
(c) the short-term accommodation is made available to a non-resident individual.
On September 25, 2006, the Government of Canada announced that the VRP would be cancelled effective April 1, 2007, as part of a package of spending restraint measures. On March 19, 2007, Budget 2007 confirmed the cancellation of the VRP, and announced the introduction of the Foreign Convention and Tour Incentive Program (FCTIP). The FCTIP became law on June 22, 2007.
Generally, under the FCTIP, a non-resident person that acquires short-term accommodation will not be eligible for a rebate of the GST/HST if the accommodation is first made available after March 2007. However, special grandfathering rules provide that the GST/HST rebate under the VRP continues to apply if the short-term accommodation is purchased under a written agreement entered into before September 25, 2006, and if the first night of continuous accommodation at the same facility starts before April 1, 2009.
The XXXXX:
The Sponsor entered into a written agreement with the XXXXX before September 25, 2006, to hold a block of approximately XXXXX rooms for use by certain persons attending the Convention held from XXXXX. The rooms were available at the Convention group rate. Pursuant to the grandfathering rules, the GST rebate under the VRP will continue to be available in respect of the short-term accommodation that the XXXXX supplied under the agreement to non-resident persons who attended the Convention and their guests. As a result, non-resident individuals may receive a GST rebate for accommodation supplied by the XXXXX at the Convention group rate. The XXXXX will identify attendees of the Convention and their guests by the group folio designation XXXXX in the hotel folio. Rooms that were reserved by Convention attendees and their guests after the cut-off date XXXXX were supplied under the agreement if they were also identified by the group folio designation XXXXX in the hotel folio. Of course, all other eligibility requirements for obtaining the rebate must still be met.
The XXXXX:
The Sponsor entered into a written agreement with the XXXXX before September 25, 2006, to hold a block of approximately XXXXX rooms for use by certain persons attending the Convention held from XXXXX. The rooms were available at the Convention group rate. Pursuant to the grandfathering rules, the GST rebate under the VRP will continue to be available in respect of the short-term accommodation that the XXXXX supplied under the agreement to non-resident persons who attended the Convention and their guests. As a result, non-resident individuals may receive a GST rebate for accommodation supplied by the XXXXX at the Convention group rate. The XXXXX will identify attendees of the Convention and their guests by the group folio designation "XXXXX" in the hotel folio. Rooms that were reserved by Convention attendees and their guests after the cut-off date XXXXX were supplied under the agreement if they were also identified by the group folio designation XXXXX in the hotel folio. Of course, all other eligibility requirements for obtaining the rebate must still be met.
The XXXXX:
The Sponsor entered into a written agreement with the XXXXX before September 25, 2006, to hold a block of approximately XXXXX rooms for use by certain persons attending the Convention held from XXXXX. The rooms were available at the Convention group rate. Pursuant to the grandfathering rules, the GST rebate under the VRP will continue to be available in respect of the short-term accommodation that the XXXXX supplied under the agreement to non-resident persons who attended the Convention and their guests. As a result, non-resident individuals may receive a GST rebate for accommodation supplied by the XXXXX at the Convention group rate. The XXXXX will identify attendees of the Convention and their guests by the group folio designation XXXXX in the hotel folio. Rooms that were reserved by Convention attendees and their guests after the cut-off date XXXXX, were supplied under the agreement if they were also identified by the group folio designation XXXXX in the hotel folio. Of course, all other eligibility requirements for obtaining the rebate must still be met.
The XXXXX:
The Sponsor entered into a written agreement with the XXXXX before September 25, 2006, to hold a block of approximately XXXXX rooms for use by certain persons attending the Convention held from XXXXX. The rooms were available at the Convention group rate. Pursuant to the grandfathering rules, the GST rebate under the VRP will continue to be available in respect of the short-term accommodation that the XXXXX supplied under the agreement to non-resident persons who attended the Convention and their guests. As a result, non-resident individuals may receive a GST rebate for accommodation supplied by the XXXXX at the Convention group rate. Rooms that were reserved by Convention attendees and their guests after the cut-off date XXXXX were supplied under the agreement if they were provided at the Convention group rate specified in the agreement, and therefore, were also eligible for the rebate. Of course, all other eligibility requirements for obtaining the rebate must still be met.
Remaining Hotels:
The non-resident attendees and their guests, who stayed at the XXXXX, are not eligible for the short-term accommodation rebate because the agreements between the Sponsor and the respective hotels were entered into after September 25, 2006.
We understand your concerns that some attendees at the Convention and their guests will not qualify for a rebate. However, we must confirm that the legislative provision that a written agreement must be entered into before September 25, 2006 must be met. The CRA is responsible for administering and enforcing the legislation as enacted by Parliament. Matters relating to tax policy and amendments to the Excise Tax Act, which governs the GST, are the responsibility of the Department of Finance.
Filing Requirements:
Where the Company files a rebate application with the CRA on behalf of the non-resident person in respect of the GST paid on the supply of short-term accommodation, the Company must provide a Power of Attorney signed by the non-resident person. A Power of Attorney is an authorization given by one person to another to act on their behalf. As indicated on the CRA's web site at http://www.cra-arc.gc.ca/tax/nonresidents/visitors/becoming-e.html, the following mandatory information must be clearly stated on your Power of Attorney:
• that you are a private company and are not affiliated with the Government of Canada or the CRA;
• complete upfront disclosure of your fee structure (i.e. the cost to the claimant for using your services);
• that it is for a refund of the GST;
• the client's first name and last name, address, telephone number, email address (if applicable) and signature; and
• the client service mailing address, telephone and fax numbers, and email address of your Company.
The Power of Attorney must not include any sentence that would allow for any sub-contracting of the non-resident visitor's claim.
Also, where the Company files a rebate application with the CRA on behalf of the non-resident person in respect of the GST paid on the supply of short-term accommodation, the Company must provide a copy of the applicable attached letter, or the agreement between the Sponsor and the Hotel, as proof that the rebate is grandfathered under the VRP.
In addition, the Company must provide all the documents of the non-resident person(s) as set out in the attached letter(s).
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
GST/HST Rulings Officer
Services and Intangibles Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
XXXXX
Case Number: 95606
July 27, 2007
XXXXX
XXXXX
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Subject:
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XXXXX GST/HST Visitor Rebate on Short-term Accommodation
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This confirms that the supply of short-term accommodation made available to non-resident individuals at XXXXX (the Hotel) between XXXXX, (the Period), identified under group folio designation XXXXX, is supplied under an agreement in writing entered into before September 25, 2006, and is grandfathered under the GST/HST Visitor Rebate Program, as amended by Budget 2007.
XXXXX (the Company) may file form GST176, Application for Visitor Tax Refund, with the Canada Revenue Agency (the CRA) on behalf of qualifying non-residents to obtain a rebate of the GST paid on the short-term accommodation acquired from the Hotel during the Period provided that all applicable conditions and restrictions are met pursuant to the Excise Tax Act. The Company must also provide a Power of Attorney acceptable to the CRA for each non-resident individual, authorizing it to act on the individual's behalf in completing the rebate application.
Qualifying non-residents must provide sufficient documentary evidence to establish their entitlement to the rebate, such as original invoices, hotel folio, receipts or other documents that show:
– the amount of GST charged by the Hotel and paid by the non-resident;
– the number of nights of accommodation made available to a non-resident individual in a particular room at the Hotel during a Period; and
– the Hotel group folio designation XXXXX.
Also, a copy of this letter should be sent with the rebate application.
Yours truly,
Michèle Routhier
Services and Intangibles Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
XXXXX
Case Number: 95606
July 27, 2007
XXXXX
XXXXX
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Subject:
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XXXXX
GST/HST Visitor Rebate on Short-term Accommodation
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This confirms that the supply of short-term accommodation made available to non-resident individuals at XXXXX (the Hotel) between XXXXX, (the Period), identified under group folio designation XXXXX, is supplied under an agreement in writing entered into before September 25, 2006, and is grandfathered under the GST/HST Visitor Rebate Program, as amended by Budget 2007.
XXXXX (the Company) may file form GST176, Application for Visitor Tax Refund, with the Canada Revenue Agency (the CRA) on behalf of qualifying non-residents to obtain a rebate of the GST paid on the short-term accommodation acquired from the Hotel during the Period provided that all applicable conditions and restrictions are met pursuant to the Excise Tax Act. The Company must also provide a Power of Attorney acceptable to the CRA for each non-resident individual, authorizing it to act on the individual's behalf in completing the rebate application.
Qualifying non-residents must provide sufficient documentary evidence to establish their entitlement to the rebate, such as original invoices, hotel folio, receipts or other documents that show:
– the amount of GST charged by the Hotel and paid by the non-resident;
– the number of nights of accommodation made available to a non-resident individual in a particular room at the Hotel during a Period; and
– the Hotel group folio designation XXXXX.
Also, a copy of this letter should be sent with the rebate application.
Yours truly,
Michèle Routhier
Services and Intangibles Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
XXXXX
Case Number: 95606
July 27, 2007
XXXXX
XXXXX
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Subject:
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XXXXX
GST/HST Visitor Rebate on Short-term Accommodation
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This confirms that the supply of short-term accommodation made available to non-resident individuals at XXXXX (the Hotel) between XXXXX, (the Period), identified under group folio designation XXXXX, is supplied under an agreement in writing entered into before September 25, 2006, and is grandfathered under the GST/HST Visitor Rebate Program, as amended by Budget 2007.
XXXXX (the Company) may file form GST176, Application for Visitor Tax Refund, with the Canada Revenue Agency (the CRA) on behalf of qualifying non-residents to obtain a rebate of the GST paid on the short-term accommodation acquired from the Hotel during the Period provided that all applicable conditions and restrictions are met pursuant to the Excise Tax Act. The Company must also provide a Power of Attorney acceptable to the CRA for each non-resident individual, authorizing it to act on the individual's behalf in completing the rebate application.
Qualifying non-residents must provide sufficient documentary evidence to establish their entitlement to the rebate, such as original invoices, hotel folio, receipts or other documents that show:
– the amount of GST charged by the Hotel and paid by the non-resident;
– the number of nights of accommodation made available to a non-resident individual in a particular room at the Hotel during a Period; and
– the Hotel group folio designation XXXXX
Also, a copy of this letter should be sent with the rebate application.
Yours truly,
Michèle Routhier
Services and Intangibles Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
XXXXX
2007/05/17 — RITS 81706 — [Application of the GST/HST to Gift Certificates Purchased and Sold to Non-Profit Organizations]
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