Foreign Convention and Tour Incentive Program
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Foreign Convention and Tour Incentive Program
Notices to reader
The information on this page replaces the information in Guide RC4160, Rebate for Tour Packages, Foreign Conventions, and Non-Resident Exhibitor Purchases. This guide has therefore been eliminated.
A GST/HST rebate is no longer available to non-residents for the Canadian accommodation portion of eligible tour packages under the Foreign Convention and Tour Incentive Program (FCTIP) if the tour packages or accommodations are supplied after March 22, 2017. However, the rebate may still be available in respect of a supply of a tour package or accommodations made after March 22, 2017, and before 2018 if the amount owing for the supply is paid in full before January 1, 2018.
The rebate will continue to be available in respect of a supply of a tour package or accommodation made on or before March 22, 2017, regardless of when the consideration for the supply is paid or the tour takes place.
In addition, a rebate under FCTIP continues to be available for certain expenses related to foreign conventions.
On this page
Find out about the Foreign Convention and Tour Incentive Program (FCTIP)
Find out who is eligible for a rebate under the FCTIP
Different GST/HST rebates available under the FCTIP
What to do if someone else is completing and filing the rebate application for you
What to do if you choose to credit or pay the GST/HST rebate under FCTIP to your clients
How to contact us
Find out about the Foreign Convention and Tour Incentive Program (FCTIP)
The FCTIP is a rebate program administered by the Canada Revenue Agency (CRA).
If you are a non-resident visitor to Canada, you cannot claim a rebate of the goods and services tax/harmonized sales tax (GST/HST) that you paid for all purchases made in Canada.
The visitor rebate program for GST/HST was replaced on April 1, 2007, with the Foreign Convention and Tour Incentive Program. For more information on the comparison between the two programs, see Program history – from VRP to FCTIP.
The FCTIP provides GST/HST rebates to:
- non-residents for the GST/HST paid on short-term and/or camping accommodation in Canada included in an eligible tour package
- convention sponsors, organizers and exhibitors for the GST/HST paid on certain properties and/or services used in the course of conventions held in Canada
In certain cases, a rebate may also be available for the Quebec sales tax paid on purchases for a foreign convention.
Find out who is eligible for a rebate under the FCTIP
You may be eligible for a rebate under the FCTIP if you are:
- a non-resident individual, or an organization or business (other than a tour operator) that is not registered for the GST/HST, you bought an eligible tour package and the short-term or camping accommodation in Canada included in the package was made available to a non-resident individual
- a non-resident tour operator that is not registered for the GST/HST, you bought and resold an eligible tour package and the short-term or camping accommodation in Canada included in the package was made available to a non-resident individual
- a non-resident tour operator that is not registered for the GST/HST, you bought short-term and/or camping accommodation and resold it as part of an eligible tour package and the short-term or camping accommodation in Canada included in the package was made available to a non-resident individual
- a sponsor of a foreign convention
- an organizer of a foreign convention and you are not registered for the GST/HST
- a non-resident exhibitor at any convention and you are not registered for the GST/HST
| Situation | Rebate eligibility |
|---|---|
|
You:
OR
OR
|
See GST/HST rebate for tour packages |
|
You:
OR
OR
|
See GST/HST and QST rebate for sponsors of foreign conventions, organizers of foreign conventions and non-resident exhibitors |
Agreement between you and a third party
You may enter into an agreement with someone else to complete and file your rebate application on your behalf. This is a completely separate, private arrangement between you and the other person. In this situation, you would still have to pay the full amount of the GST/HST that is due to the supplier and wait to get the FCTIP rebate from us.
Depending on your agreement, the person who files your rebate application may give you an amount equal to the estimated amount of the rebate out of their own funds, so you do not have to wait for your rebate to be mailed to you from the CRA. This arrangement is not the same as a supplier paying or crediting you with the rebate amount. Unlike a supplier, they might also charge you a fee for filing the application.
If you enter into an agreement for someone else to file your rebate application for you, all of the required documents for claiming the rebate have to be provided with the application to validate the rebate claim. Proof that you have authorized the person to file the rebate application on your behalf, such as a power of attorney, must also be provided with the application.
Information required on a power of attorney document
We will accept and act on a power of attorney only if it contains all of the following:
- a statement that the authorized person is not affiliated with the Government of Canada or the CRA
- complete and upfront disclosure of any fees the authorized person charges you to complete and file your rebate application for you
- a statement that you authorize the other person to act on your behalf
- a statement that the power of attorney is for a rebate of the GST/HST and/or the QST under the FCTIP
- your name, address, telephone number, email address (if applicable) and signature
- the name, address, telephone and fax numbers and email address (if applicable) of the person you are authorizing
Regardless of how you structure your business arrangement with the authorized person, we mail the cheque payable to you to the address on Form GST115, GST/HST Rebate Application for Tour Packages, or Form GST386, Rebate Application for Conventions. The address could be your address outside Canada or the authorized person’s address in Canada.
How GST/HST is charged and accounted for when a GST/HST registrant acts on behalf of a recipient
As a GST/HST registrant, if you agree to act on behalf of a recipient (in other words, as an authorized person), you must still charge the full amount of the GST/HST payable and this amount must be accounted for on your GST/HST return. If you advance an amount equal to the estimated rebate amount from your own funds, this amount cannot be deducted when you complete your return.
Advancing funds to a consumer for the amount of the rebate is considered a private arrangement between you and the recipient and is not the same as paying or crediting the rebate amount to the recipient.
Whether or not there is a power of attorney in place, the invoice to the recipient must indicate the amount of the GST/HST payable.
Payment methods if a third party files your rebate application on your behalf
When you authorize another person (a third party) to act as your attorney to complete and file your rebate application, you and the third party must decide how the rebate amount will ultimately be paid to you. You and the third party may choose to use various private arrangements to pay your rebate to you such as the mail-in payment method or the instant payment method.
Example - When a non-resident non-registered tour operator buys a block of rooms from a registrant hotel
A non-resident non-registered tour operator buys a block of rooms from a registrant hotel in Calgary, Alberta for $2,000 plus $100 GST. A power of attorney is signed between the hotel and the tour operator. This document provides that the hotel will advance from its own funds an amount equal to the estimated GST rebate and will file the rebate claim on the tour operator's behalf.
The hotel decides to show the advance on the invoice:
| Details | Amounts |
|---|---|
| Price of the Hotel Rooms | $2,000 |
| 5% GST payable ($2,000 x 5%) | $100 |
| Subtotal | $2,100 |
| Less: Advance of amount equal to estimated rebate | ($100) |
| Net amount payable | $2,000 |
The hotel completes Form GST115 and sends it to the CRA with the supporting documentation and the signed power of attorney.
In its GST/HST return, the hotel accounts for the full amount of GST payable, but does not deduct the advance paid as this is a private matter between the two parties.
| Details | Amounts |
|---|---|
| Sales and other revenue (line 101) | $2,000 |
| GST/HST collected (line 103) | $100 |
| Adjustments (line 104) | $0 |
| Total GST/HST adjustments (line 105) | $100 |
| Input tax credits (line 106) | $0 |
| Adjustments (line 107) | $0 |
| Total ITCs / adjustments (line 108) | $0 |
| Net tax (line 109) | $100 |
Mail-in payment
When using the mail-in payment method, the authorized person completes and files the rebate application with the CRA. They are also required to send the supporting documents and a signed power of attorney. Depending on the arrangement with you, the authorized person may charge a fee for its service. The CRA will then pay you the rebate.
Instant payment method
Instant payment method
Generally, when using the instant payment method, the authorized person completes and files the rebate application with the CRA. They are also required to send the supporting documents and a signed power of attorney. This person advances an amount equal to the estimated GST/HST rebate to you from the person’s own funds. Depending on the arrangement with you, the authorized person may deduct a fee for its service. The CRA will pay the amount of the rebate to the authorized person.
Example – When a non-resident non-registered tour operator buys a block of rooms from a registrant hotel
A non-resident non-registered tour operator buys a block of rooms from a registrant hotel in Calgary, Alberta for $2,000 plus $100 GST. A power of attorney is signed between the hotel and the tour operator. This document provides that the hotel will advance from its own funds an amount equal to the estimated GST rebate and will file the rebate claim on the tour operator's behalf.
The hotel decides to show the advance on the invoice:
| Details | Amounts |
|---|---|
| Price of the Hotel Rooms | $2,000 |
| 5% GST payable ($2,000 x 5%) | $100 |
| Subtotal | $2,100 |
| Less: Advance of amount equal to estimated rebate | ($100) |
| Net amount payable | $2,000 |
The hotel completes Form GST115 and sends it to the CRA with the supporting documentation and the signed power of attorney.
In its GST/HST return, the hotel accounts for the full amount of GST payable, but does not deduct the advance paid as this is a private matter between the two parties.
| Details | Amounts |
|---|---|
| Sales and other revenue (line 101) | $2,000 |
| GST/HST collected (line 103) | $100 |
| Adjustments (line 104) | $0 |
| Total GST/HST adjustments (line 105) | $100 |
| Input tax credits (line 106) | $0 |
| Adjustments (line 107) | $0 |
| Total ITCs / adjustments (line 108) | $0 |
| Net tax (line 109) | $100 |
What to do if you choose to credit or pay the GST/HST rebate under FCTIP to your clients
If you are registered for the GST/HST, you can choose to credit or pay the rebate amount payable under the FCTIP if one of the following applies to you:
- you supply eligible tour packages to:
- non-resident individuals, organizations or businesses (other than tour operators)
- non-resident tour operators
- you are an organizer of a foreign convention and you supply convention facilities and/or related convention supplies to the sponsor of the convention
- you are an operator of a convention facility who is not an organizer of the foreign convention and you supply convention facilities and related convention supplies to one of the following:
- a sponsor of a foreign convention
- an organizer of a foreign convention that is not registered for the GST/HST
- you are not an organizer of the foreign convention and you supply short-term accommodation or camping accommodation to one of the following:
- a sponsor of a foreign convention
- an organizer of a foreign convention that is not registered for the GST/HST
Canadian suppliers cannot pay or credit the GST/HST and/or the QST to non-resident exhibitors.
For more information, see GST/HST registrants that pay or credit the rebate under the FCTIP.
How to contact us
If you are a non-resident and would like more information on how the GST/HST applies to tourism, see Non-resident GST/HST Enquiries to determine the tax services office you should contact.
If you have questions about the FCTIP or you want to know the status of your rebate, call:
- from Canada and the United States, 1-800-959-5525
- from outside Canada and the United States, 613-940-8497
We accept collect calls by automated response. You may hear a beep and experience a normal connection delay.
You can also write to:
Prince Edward Island Tax Centre
275 Pope Road
Summerside
PE
C1N 6A2
CANADA
- Date modified:
- 2019-04-15