14 March 2008 GST/HST Ruling 61357r - Temporary Importation - Television Production Truck and Related Television Equipment

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:

This is further to our letter XXXXX, regarding paying or crediting an amount of the short-term accommodation rebate.

Effective January 1, 2008, the rate of the GST has been reduced from 6% to 5% and the rate of HST from 14% to 13%. The new rates apply to supplies for which the GST/HST is paid on or after January 1, 2008, 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 GST/HST Notice 226, GST/HST Rate Reduction in 2008 on the Canada Revenue Agency (CRA) Web site at www.cra-arc.gc.ca/E/pub/gi/notice226/README.html.

Interpretation Given

As you may be aware, the Visitor Rebate Program (VRP) was cancelled effective April 1, 2007 and replaced by the new Foreign Convention and Tour Incentive Program (FCTIP).

The FCTIP continues to provide 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 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.

We have recently published four GST/HST Info Sheets, copies of which are enclosed for your convenience, on the cancellation of the VRP and the new FCTIP. They are as follows:

•   GST/HST Info Sheet GI-026, Non-Residents Purchasing Accommodation: When is the Rebate Still Available,

•   GST/HST Info Sheet GI-032, Non-Residents Purchasing Tour Packages: Rebate for Eligible Tour Packages,

•   GST/HST Info Sheet GI-033, Non-Resident Tour Operators: Rebate for Accommodation Sold in Eligible Tour Packages, and

•   GST/HST Info Sheet GI-044, Tour Packages: What is an Eligible Tour Package.

In particular, GST/HST Info Sheet GI-044, Tour Packages: What is an Eligible Tour Package, clarifies what an eligible tour package is for purposes of claiming a GST/HST rebate under the FCTIP.

An eligible tour package for the purposes of the GST/HST rebate under the FCTIP is the same as that under the VRP; however, unfortunately it has come to our attention that the conclusion with respect to which of the two packages is a tour package was reversed in Appendix A to our letter XXXXX.

Therefore, under the heading "Tour Package" in Appendix A,

Consider the following two packages that are each supplied for an all-inclusive price:

•   a Ski Package consisting of ski lessons and ski rentals, and

•   a City Weekend Package, consisting of short-term accommodation, meals and theatre tickets,the final paragraph should read as follows:

The Ski Package is a tour package but the City Weekend Package does not meet the definition of a tour package.

In order to meet the definition of a tour package under the Excise Tax Act (ETA), the City Weekend Package must include a service. Short-term accommodation, meals and theatre tickets are property for GST/HST purposes.

The foregoing comments represent our general views with respect to the subject matter of your request. 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. Future changes to the ETA, regulations, or our interpretative policy could affect this interpretation.

We regret any inconvenience this may have caused. If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (613) 954-2488.

Yours truly,

Carla Schur-Ellison
Services and Intangibles Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate

2008/03/20 — RITS 86233 — Sales of Used Books