25 July 2000 GST/HST Ruling 8156/HQR0001762 - Application of GST/HST to Elk Hunting At A Ranch

Dear Sir:

Thank you for your letter of April 4, 1999, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the transaction described below. Your letter was forwarded to us for response by the XXXXX.

Please note that as of November 1, 1999, Revenue Canada became the Canada Customs and Revenue Agency (CCRA).

Statement of Facts

Our understanding of the facts is as follows:

1. XXXXX. As part of its operation, XXXXX solicits non-residents to book an elk hunt where the non-resident is given the opportunity to harvest an elk that is located XXXXX. The elk hunt includes transportation, the services of a guide, accommodation and meals.

2. The elk to be harvested will be of a particular size and scoring based upon a standardized scoring method. If the non-resident successfully harvests an elk as requested, the non-resident will be charged a hunt fee XXXXX determined in advance. If the non-resident does not harvest the desired elk, the non-resident is charged XXXXX for accommodation and meals.

3. Non-residents staying at the lodge but not participating in the hunt are charged XXXXX for accommodation and meals.

4. If the non-residents wish to extend their stay beyond their original booking, each person is charged an additional XXXXX.

5. In addition, as part of the package, XXXXX offers an optional migratory bird hunt for an additional fee XXXXX. This activity includes transportation and the services of a guide.

6. XXXXX charges the GST on accommodation and meals only.

Ruling Requested

How does the GST apply to the transactions of the XXXXX elk hunt?

How does the GST apply to the migratory bird hunt?

Ruling Given

Based on the facts set out above, we rule that XXXXX is supplying a recreational hunting tour package which is a 7% taxable supply, and that the migratory bird hunt is an optional element within the tour package.

This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST/HST 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 CCRA interpretative policy; and that you have fully described all necessary facts and transaction(s) for which you requested a ruling.

Explanation

XXXXX supplies non-residents with the following combination of goods and services:

-    accommodation,

-    meals,

-    access to XXXXX,

-    transportation within XXXXX,

-    guide services and

-    recreation (hunting).

The combination of these goods and services qualifies as a single supply of a tour package. The tour package the non-resident receives is a taxable supply at 7% on the total amount charged for the tour package.

In regard to the migratory bird hunt, this is an optional element within the tour package of another recreational activity. Although there is a separate charge for the bird hunt in addition to the elk hunt fee, it still forms part of the tour package.

Individuals who do not harvest either an elk or birds, or non-hunter individuals are still provided with a tour package.

On May 6, 1999, our XXXXX office wrote to you with information concerning the GST visitors rebate. As mentioned in that letter, non-resident individuals are entitled to a rebate for the GST paid on short-term accommodation. If certain conditions are met, the tour operator can credit the rebate and reduce the amount payable for the package by the accommodation rebate.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 952-9218.

Yours truly,

Kevin W. Smith
Goods Unit
General Operations and Border Issues (GOBI) Division
Excise & GST/HST Rulings Directorate