10 September 1999 GST/HST Interpretation HQR0001934 - Admission to a Place of Amusement

This is in reply to your e-mail of September 3, 1999, and your query related to the XXXXX which is a charity for GST/HST purposes. We would advise that we agree that admissions to the XXXXX costing more than $1 would be excluded from the general exemption for charities under paragraph 1(e) as an admission to a place of amusement (exceeding one dollar). However, it is our view that the fundraising exemption for charities set out under section 3 of Part V.1 of Schedule V would not apply to exempt the admissions. Therefore, the admissions would be taxable and the XXXXX, if a GST/HST registrant, would be required to collect GST on the amount charged for admissions.

Our view is based on our understanding that the holding of the XXXXX the main purpose or mandate of the organization in question - the purpose for which the organization in question exists - so that the holding of the XXXXX would not be regarded as a "fundraising activity" as contemplated by section 3 of Part V.1. Hence, the admissions are not supplied "in the course of a fundraising activity." The underlying purpose of a "fundraising activity" as referred to in section 3 must be to raise money to support the activities of an organization, activities usually related to the mandate of the organization.

Although there is not sufficient information to be more definitive on the sale of passes, it is our view that the sale of the passes by the XXXXX would likely be treated in the same manner as the gate admissions.

We would add that the XXXXX may be exempt under section 3 provided they are being supplied in the course of a fundraising activity (as described above) and provided they are not sold on a regular or continuous basis throughout the year or a significant portion of the year.

Should you have any further questions or require clarification on the above matter, please contact me at (613) 952-0420.