26 March 2013 GST/HST Ruling 150758 - FCTIP – Tour Package Eligibility

Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.

Dear [Client]:

Thank you for your fax of January 22, 2013, concerning the eligibility of […][the Tour] for purposes of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) rebate provided under the Foreign Convention and Tour Incentive Program (FCTIP).

The HST applies in the participating provinces at the following rates: 13% in Ontario, New Brunswick and Newfoundland and Labrador, 15% in Nova Scotia, and 12% in British Columbia. The GST applies in the rest of Canada at the rate of 5%.

Effective April 1, 2013, the 12% HST in British Columbia will be replaced by the 5% GST and a provincial sales tax. It is also proposed that, effective April 1, 2013, the provincial sales tax and the 5% GST currently in effect in Prince Edward Island will be replaced by a 14% HST.

Statement of Facts

Based on your fax of January 22, 2013, the documentation you provided, your Web site and our telephone conversation of February 5, 2013, we understand:

1. […] (hereafter, the Tour Operator) is registered for GST/HST purposes under Business Number […].

2. The Tour Operator assembles a tour which it markets as the […] (hereafter, the Tour) and which takes place between [mm] and [mm]. The Tour is sold to persons that are not resident in Canada (hereafter, non-resident persons).

3. The Tour includes packages that range from [#] nights to [#] nights short-term accommodation in [City 1, Province X], […][details of tour packages]

4. The Tour includes three services:

a. a fishing guide […];

b. a fish processing service […]; and

c. a passenger transportation service […].

5. The Tour Operator sells the Tour for an all-inclusive price.

6. The Tour Operator does not pay or credit an amount on account of the FCTIP rebate to non-resident persons at the point of sale.

Ruling Requested

You would like to know if the Tour is an eligible tour package for purposes of the FCTIP.

Ruling Given

Based on the facts set out above, we rule that the Tour is an eligible tour package for purposes of the FCTIP.

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

The Tour is an eligible tour package for purposes of the FCTIP since it is a tour package that includes short-term and/or camping accommodation in Canada and at least one service, and it is sold for an all-inclusive price.

ADDITIONAL INFORMATION

Under the FCTIP, a non-resident person may be entitled to a rebate of up to 50% of the GST/HST payable on an eligible tour package purchased from a GST/HST registrant. Generally, a non-resident person is entitled to a rebate where it:

•     pays GST/HST on the purchase of the eligible tour package; and

•     meets all other conditions and restrictions set out in the Excise Tax Act. Different conditions and restrictions may apply, depending on whether the nonresident person is an individual, a business, an organization, or a tour operator. Information on these conditions and restrictions can be found in GST/HST Guide RC4160, Rebate for Tour Packages, Foreign Conventions, and NonResident Exhibitor Purchases.

A non-resident person that is entitled to a rebate could file Form GST115, GST/HST Rebate Application for Tour Packages, to claim the rebate. When filing Form GST115 with the Canada Revenue Agency, a copy of this ruling or the applicable enclosed confirmation letter may be attached as evidence that the Tour is an eligible tour package for purposes of the FCTIP.

Neither this ruling nor the enclosed confirmation letter should be construed as being a declaration by the Canada Revenue Agency that a particular non-resident person is entitled to a rebate.

More information on the FCTIP is available at www.cra.gc.ca/visitors.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-957-8223. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.

Yours truly,

Russell Vermette
Services and Intangibles Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate