3 April 1998 GST/HST Ruling HQR0001053 - Input Tax Credit for Purchases Subject to HST

                                                                        GST/HST Rulings and Interpretations
Directorate
Place Vanier, Tower C, 10th Floor
25 McArthur Avenue
Vanier, Ontario
 XXXXX                                                                                K1A 0L5

Dear XXXXX

Thank you for your letter of December 2, 1997, concerning the entitlement of the XXXXX to input tax credits (ITCs) in respect of purchases that are subject to the Harmonized Sales Tax.

Our understanding of the facts is as follows:

Statement of Facts

1) XXXXX that is registered for purposes of the Goods and Services Tax/Harmonized Sales Tax (GST/HST). It has approximately XXXXX members,  XXXXX[.]

2) XXXXX holds an annual meeting that is open to both members and non-members. This year's meeting will be held XXXXX[.]

3) Non-resident attendees will comprise approximately 20% of the delegates to the meeting. However, for purposes of the GST/HST the meeting is not a foreign convention.

4) XXXXX will charge an attendance fee in order to cover the expenses related to holding the meeting.

5) Members who attend the meeting will receive a discount on the attendance fee XXXXX[.]

6) In the past, XXXXX has charged GST at 7% on the attendance fee. However, as this year's meeting is XXXXX will charge the HST at 15% on the fee.

7) XXXXX will incur expenses related to the meeting for which it will pay the HST (e.g., food and beverages for the delegates, meeting rooms and minor accommodation expenses).

Ruling Requested

You are requesting confirmation of XXXXX entitlement to ITCs with respect to expenses it incurs for the meeting, and on which the HST rate of 15% is paid or payable.

Ruling Given

Based on the facts set out above, we rule that XXXXX is entitled to claim an input tax credit in respect of the HST paid or payable on purchases it incurs for the meeting to be held in XXXXX on the basis that the purchases are for use in its commercial activities.

This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST Memoranda Series. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal; that there are no relevant changes in the future to the Excise Tax Act, or to departmental interpretative policy; and that you have fully described all necessary facts and transaction(s) for which you requested a ruling.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 954-4206.

Yours truly,

Dwayne Moore
Rulings Officer
Charities, NPO's and Educational Services Unit
Public Service Bodies and Government Division
GST/HST Rulings and Interpretations Directorate

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