GST/HST rebate for tour packages
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GST/HST rebate for tour packages
Notices to the reader
The information on this page replaces the information in Guide RC4160, Rebate for Tour Packages, Foreign Conventions, and Non-Resident Exhibitor Purchases, and as a result, this guide has 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 still 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 the FCTIP is still available for certain expenses related to foreign conventions.
As of July 1, 2021, digital economy businesses, including digital platform operators, may have potential goods and services tax/harmonized sales tax (GST/HST) obligations under three new measures that were announced in the Fall Economic Statement 2020 by the Government of Canada and revised as announced on April 19, 2021 following consultations with stakeholders. This means you may have new obligations, including registering, charging, collecting and reporting the GST/HST.
For more information on these new measures and the definitions for the digital economy go to GST/HST for digital economy businesses: Overview.
On this page
Rebate eligibility
Eligible tour packages
Calculating and claiming the rebate
Filing your rebate application
Documents to include with the rebate application and to keep for your records
What to do if someone is filing your rebate application for you
Paying or crediting the GST/HST rebate for a tour package
Requesting a GST/HST-ruling service on the eligibility of a tour package
Rebate eligibility
Under the Foreign Convention and Tour Incentive Program (FCTIP), you may be eligible for a rebate of the goods and services tax / harmonized sales tax (GST/HST) paid on an eligible tour package if any of the situations described below applies to you:
| Situation | Rebate eligibility | Criteria |
|---|---|---|
|
If you are:
or
|
You bought an eligible tour package and the supplier did not pay or credit the rebate amount to you. |
To qualify you must meet all of the following conditions:
|
|
If you are:
|
You bought an eligible tour package and resold it. or You bought short-term and/or camping accommodation in Canada and resold it as part of an eligible tour package. |
To qualify you must meet all of the following conditions:
|
Note
Travel agencies, persons who sell packages for tour operators and persons who sell packages that include a convention facility or related convention supplies are not eligible for a rebate under the FCTIP.
Eligible tour packages
To be an eligible tour package for the FCTIP rebate, the tour package must be sold for an all-inclusive price and must include the following elements:
- short-term and/or camping accommodation in Canada
- at least one service
Example - Eligible tour packages
The following table contains examples of packages that meet these requirements and are eligible for the FCTIP rebate.
| Situation | Result |
|---|---|
|
A package consists of round-trip air transportation, hotel accommodation in Canada, guided sightseeing tours, and meals sold for an all-inclusive price. |
This package is an eligible tour package for this rebate because it includes both short-term accommodation in Canada and a service (both the air transportation and the sightseeing tours are services) sold for an all-inclusive price. |
|
A package consists of accommodation at a bed and breakfast in Canada, bus transportation to and from an outlet shopping centre in a neighbouring city, and attendance at a festival sold for an all-inclusive price. |
This package is an eligible tour package for this rebate because it includes short-term accommodation in Canada and a service (intercity bus transportation) sold for an all-inclusive price. |
|
A purchaser asks that an advertised package be altered to add theatre tickets and a car rental. The advertised package consisted of hotel accommodation in Canada and round-trip air transportation. The altered package is sold for an all-inclusive price. |
The altered package is an eligible tour package for this rebate, because it includes short-term accommodation in Canada and a service (air transportation), and it is sold for an all-inclusive price. |
|
A tour operator offers customized packages to purchasers. The tour operator offers short-term accommodation in Canada, meals, air transportation, and admission ticket options. Purchasers build their own package by choosing one of each option. The package is sold for an all-inclusive price. |
This package is an eligible tour package for this rebate because it includes short-term accommodation in Canada and a service (air transportation) for an all-inclusive price. |
|
A fishing package includes a short term accommodation in Canada and fish processing services that consist of scaling, cutting, wrapping, and freezing the fish the angler catches. The package is sold for an all-inclusive price. |
This package is an eligible tour package for this rebate because it includes short-term accommodation in Canada and a service (the fish processing service) sold for an all-inclusive price. |
The following table gives examples of packages that meet the requirements and are eligible for the FCTIP rebate.
| Situation | Result |
|---|---|
|
A package consists of round-trip air transportation, hotel accommodation in Canada, guided sightseeing tours and meals. The package is sold for an all-inclusive price. |
This package is an eligible tour package for this rebate because it is sold for an all-inclusive price and includes both short-term accommodation in Canada and a service (both the air transportation and the sightseeing tours are services). |
|
A package consists of accommodation at a bed-and-breakfast in Canada, bus transportation to and from an outlet shopping centre in a neighbouring city and attendance at a festival. The package is sold for an all-inclusive price. |
This package is an eligible tour package for this rebate because it is sold for an all-inclusive price and includes both short-term accommodation in Canada and a service (intercity bus transportation). |
|
A buyer asks that an advertised package be modified to add theatre tickets and a car rental. The advertised package consisted of hotel accommodation in Canada and round-trip air transportation. The modified package is sold for an all-inclusive price. |
The modified package is eligible because it is sold for an all-inclusive price and includes both short-term accommodation in Canada and a service (air transportation). |
|
A tour operator offers customized packages to buyers. The tour operator offers short-term accommodation in Canada, meals, air transportation and admission ticket options. Buyers build their own package by choosing one of each option. The package is sold for an all-inclusive price. |
This package is an eligible tour package for this rebate because it is sold for an all-inclusive price and includes both short-term accommodation in Canada and a service (air transportation). |
|
A fishing package includes short-term accommodation in Canada and fish processing services that consist of scaling, cutting, wrapping and freezing the fish the angler catches. The package is sold for an all-inclusive price. |
This package is an eligible tour package for this because it is sold for an all-inclusive price and includes both short-term accommodation in Canada and a service (the fish processing service). |
The following table gives examples of packages that are not eligible for the FCTIP rebate.
| Situation | Result |
|---|---|
|
A package consists of camping accommodation in Canada, meals and admission to a heritage site. The package is sold for an all‑inclusive price. |
This package is not an eligible tour package because although the package includes camping accommodation in Canada, it does not include a service. The meals and admission are property. |
|
A package includes accommodation, meals, and admission to a golf course. |
This package is not an eligible tour package because it does not include a service. The meals and the admission to the golf course are property. |
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A hotel in Canada provides short-term accommodation and a shuttle to and from a nearby casino. The shuttle is included in the room price. |
This package is not an eligible tour package because the shuttle is part of the accommodation. This is accommodation only, not a tour package. |
|
A stay at an “all-inclusive” resort in Canada is sold. Accommodation at the resort, meals at the resort, access to the resort swimming pool, access to the resort tennis court, and a spa service at the resort spa are part of the price. |
This package is not an eligible tour package because at an all-inclusive resort, items such as the meals, complimentary access to the swimming pool and tennis court, and complimentary spa service at the resort spa are part of the accommodation. This is a supply of accommodation only, not a tour package. |
|
A fishing package provides accommodation, meals, boat, fuel and coolers or meat boxes for transportation. |
This package is not an eligible tour package because it does not include a service. The meals, boat, fuel, coolers and meat boxes are property. |
|
The sponsor of a convention hires an organizer to put on a convention that will be held in Manitoba. The organizer charges an all-inclusive price for the rental of the convention facility, accommodation for the sponsor at a hotel, advertising, security, convention materials and food and beverages. |
This convention is not an eligible tour package because it includes a convention facility and related convention supplies. However, sponsors of foreign conventions, non-registered convention organizers and non-resident exhibitors may be eligible for other rebates under the FCTIP. |
Example - Non-eligible tour packages
The following table contains examples of packages that are not eligible for the FCTIP rebate.
| Situation | Result |
|---|---|
|
A package consists of camping accommodation in Canada, meals, and admission to a heritage site sold for an all-inclusive price. |
This package is not an eligible tour package for this rebate. Although the package includes camping accommodation in Canada, it does not include a service (meals and admission are both property). |
|
A package includes accommodation, meals, and admission to a golf course. |
This package is not an eligible tour package for this rebate because it does not include a service. The meals and the admission to the golf course are both property. |
|
A hotel in Canada provides short-term accommodation and a shuttle to and from a nearby casino. The shuttle is included in the room price. |
This is not an eligible tour package for the rebate because the shuttle is part of the accommodation. Therefore, this is accommodation only, not a tour package. |
|
A stay at an “all-inclusive” resort in Canada is sold. Accommodation at the resort, meals at the resort, access to the resort swimming pool, access to the resort tennis court, and a spa service at the resort spa are part of the price. |
This package is not an eligible tour package for this rebate because, in the case of an all-inclusive resort, items such as the meals, complimentary access to the resort swimming pool and tennis court, and a complimentary spa service at the resort spa are part of the accommodation. Therefore, this is a supply of accommodation only, not a tour package. |
|
Fishing package - A package provides accommodation, meals, boat, fuel, and coolers or meat boxes for transportation. |
This package is not an eligible tour package because it does not include a service. The meals, boat, fuel, coolers, and meat boxes are property. |
|
Convention facility or related convention supplies packages - The sponsor of a convention hires an organizer to put on a convention that will be held in Manitoba. The organizer charges an all-inclusive price for the rental of the convention facility, accommodation for the sponsor at a hotel, advertising, security, convention materials, and food and beverages. |
This is not an eligible tour package because it includes a convention facility and related convention supplies. However, sponsors of foreign conventions, non-registered convention organizers and non-resident exhibitors may be eligible for other rebates under the FCTIP. |
Calculating and claiming the rebate
Use the following tabs to determine how to calculate your rebate based on your situation.
Rebate for accommodation resold in a tour package (tour operators)
If you are eligible to claim a rebate for the tax paid on short-term and/or camping accommodation in Canada that you bought and resold in an eligible tour package, you can claim a rebate equal to 100% of the GST/HST paid on the accommodation.
Example
A non-resident non-registered tour operator acquired a block of rooms from a hotel in a participating province and paid $390 HST. The tour operator supplied the accommodation as part of eligible tour packages to non-residents and met all the other rebate eligibility requirements. The tour operator can claim a rebate equal to $390 (HST paid in respect of the short-term accommodation).
A non-resident, non-registered tour operator acquired a block of rooms from a hotel in a participating province and paid $390 HST. The tour operator supplied the accommodation as part of eligible tour packages to non-residents and met all of the other rebate eligibility requirements. The tour operator can claim a rebate equal to $390 (HST paid for the short-term accommodation).
To claim your rebate, use Form GST115, GST/HST Rebate Application for Tour Packages.
Rebate for tour package you bought and resold (tour operators)
Rebate for tour package you bought and resold (tour operators)
If you are eligible to claim a rebate for the tax paid on an eligible tour package you bought and resold, you can claim a rebate for part of the tax you paid on the tour package.
The rebate for an eligible tour package is generally equal to 50% of the GST/HST paid on the package.
However, the rebate is reduced if any of the nights of accommodation provided in Canada as part of the tour package are not eligible accommodation. The reduced rebate amount is calculated as follows:
| Formula | Where | Example |
|---|---|---|
| (A ÷ B) × 50% of the GST/HST paid |
A is the number of nights of short-term and/or camping accommodation in Canada included in the tour package. B is the total number of nights in Canada included in the tour package, including ineligible accommodation such as overnight shelter on a boat, trailer, or a train. |
An eligible tour package includes a total of five nights in Canada, with two nights of accommodation in a Canadian hotel and the rest on a train. The GST on the tour package is $45. Only the two nights of accommodation at the hotel are eligible, because the nights spent on the train do not qualify as short-term accommodation. With only two of five nights eligible as short-term accommodation, the 50% GST rebate is reduced as follows: (2 ÷ 5) × (50% × $45) = $9 The calculated rebate amount is $9. |
To claim your rebate, use Form GST115, GST/HST Rebate Application for Tour Packages.
Non-resident individuals, organizations or businesses (other than tour operators)
Non-resident individuals, organizations or businesses (other than tour operators)
If the supplier did not pay or credit the rebate amount to you and you are eligible to claim a rebate for 50% of the tax paid on the purchase of an eligible tour package, you can choose one of the following methods to calculate your rebate claim:
Depending on your situation, the result of one of these calculations may be higher than the other. You may want to do both calculations to find out what your rebate would be using each method. For more information, see Comparing calculation methods – general vs quick.
General calculation method
| Formula | Where | Example |
|---|---|---|
| (A ÷ B) × 50% of the GST/HST paid |
A is the number of nights of short-term and/or camping accommodation in Canada included in the tour package. B is the total number of nights in Canada included in the tour package, including ineligible accommodation such as overnight shelter on a boat, trailer, or a train. |
An eligible tour package includes a total of five nights in Canada, with two nights of accommodation in a Canadian hotel and the rest on a train. The GST on the tour package is $45. Only the two nights of accommodation at the hotel are eligible, because the nights spent on the train do not qualify as short-term accommodation. With only two of five nights eligible as short-term accommodation, the 50% GST rebate is reduced as follows: (2 ÷ 5) × (50% × $45) = $9 The calculated rebate amount is $9. |
Quick calculation method
The rebate amount available using the quick calculation method is the total of:
- $5 per night of short-term accommodation in Canada included in the eligible tour package
- $1 per night of camping accommodation in Canada included in the eligible tour package
For each rebate claim:
- a non-resident individual can receive a maximum rebate of CAN$75 for all eligible tour packages
- a non-resident business or organization can receive a maximum rebate of CAN$75 for each individual to whom the short-term and/or camping accommodation in all eligible tour packages was made available
If you are an individual consumer (buying a tour package for your personal use and enjoyment or that of another individual) who bought more than one eligible tour package from the same person, and those eligible tour packages include short-term and/or camping accommodation in Canada on the same nights, you can only claim a rebate for one of those tour packages if you use the quick calculation method.
| Situation | Calculation |
|---|---|
|
A non-resident consumer buys an eligible tour package from a Canadian tour operator and pays the 5% GST. The package includes two nights’ accommodation in a hotel and three nights’ accommodation at a campground. |
$5 × 2 nights of short-term accommodation + $1 × 3 nights of camping accommodation The calculated rebate amount is $13. |
Note
Accommodation in a campsite included as part of an eligible package with food and guide services (for example, an outdoor adventure tour package) qualifies as short-term accommodation instead of "camping accommodation" and is eligible for a rebate of CAN$5 per night.
Comparing calculation methods – general vs quick
Depending on your situation, the result of one of these calculations may be higher than the other. You may want to do both calculations to find out what your rebate would be using each method. You can claim the higher amount. However, you must use the same calculation method for all eligible tour packages included in one rebate claim. The rebate amount is calculated as follows:
| Situation | Calculation |
|---|---|
|
A non-resident consumer travelling in Nova Scotia with his family buys four eligible tour packages for $2,000 each for a total of $8,000. He pays $260 HST on each package for a total of $1,040 HST. The four tour packages are identical and include seven nights of short-term accommodation in a hotel in Canada. |
Using the general calculation method, the rebate is equal to 50% of the HST paid on all four tour packages ($1,040 × 50% = $520). The calculated rebate amount is $520. Using the quick calculation method, the rebate is equal to $5 multiplied by 7 nights of short-term accommodation. The calculated rebate amount is $35. Under the quick calculation method, you can only claim a rebate for one tour package. |
To claim your rebate, use Form GST115, GST/HST Rebate Application for Tour Packages.
Filing your rebate application
You have to file your rebate application within one year after the last day any tax to which the rebate relates became payable. Generally, the day the tax became payable is the day you paid the amount due or the date of the invoice, whichever comes first. Make sure to attach the supporting documents.
Send your form with the attached supporting documents to:
Canada Revenue Agency
Prince Edward Island tax centre
275 Pope Road
Summerside PE C1N 6A2
CANADA
Documents to include with the rebate application and to keep for your records
Attach copies (do not send the CRA original receipts) of all of the following supporting documents to your rebate claim:
- invoices or receipts showing the GST/HST you paid on each eligible tour package
- itineraries or detailed descriptions for each eligible tour package, including the number of nights of accommodation in Canada
You can provide the itineraries on paper or CD. For other options, see Contacting the CRA. The CRA may accept other supporting documents if they confirm that you qualify for the rebate.
The supporting documents must be in either English or French, or you must provide a translation. If you do not provide all of the supporting documents with your rebate application, it will be denied. Receipts and supporting documents sent with your rebate application will not be returned to you.
Information required on supporting documents
Supporting documents must show that the non-resident paid the GST/HST on the supply of short-term or camping accommodation, or the eligible tour package, as the case may be. An invoice that shows only the tax payable (not paid) is not sufficient.
Supporting documents must show that the packages were tour packages supplied to non-residents or by a tour operator, as the case may be, for an all-inclusive price, and that the packages included short-term and/or camping accommodation in Canada and at least one service. In addition, supporting documents must specify the number of nights of short-term and/or camping accommodation in Canada included in each package.
The information showing that a tour operator has met the eligibility requirements does not have to be on separate documents. One or two documents may contain all the required information. In addition, electronic documents that can be reproduced on paper are acceptable.
The CRA will also accept documents prepared by non-resident, non-registered tour operators (in other words, reverse invoicing), as long as the documents include the information that would be found on the original invoices or receipts prepared by the registrant supplier. These documents must include the following information:
- the supplier’s name, address, telephone number and business number
- the recipient’s name, address and telephone number
- details about the supply, such as a description of the accommodation, the number of nights and consideration
- the GST/HST charged
- proof that the amount was paid (for example, a copy of a cancelled cheque or wire payment confirmation number)
Tour operator records
If you are a tour operator, you must also keep all of the following documents in your records and make them available if the CRA asks to see them:
- a list of names and addresses of the non-residents who bought your tour packages
- a list of names and addresses of the non-resident individuals who stayed in the accommodation
- the names of the agents through whom you sold the tour packages (if applicable)
- copies of the original invoices issued to your clients
What to do if someone is filing your rebate application for you
If you enter into an agreement with someone else to file your rebate application for you, see What to do if someone is filing your rebate application for you.
Paying or crediting the GST/HST rebate for a tour package
If you are a GST/HST registrant and you supply eligible tour packages, you can choose to pay or credit the rebate amount under the FCTIP to:
- a non-resident tour operator that is not registered for the GST/HST
- a non-resident individual, organization or business (other than a tour operator)
For more information, see GST/HST registrants that pay or credit the rebate under the Foreign Convention and Tour Incentive Program.
Requesting a GST/HST-ruling service on the eligibility of a tour package
Under the GST/HST rulings service, tour operators may ask for a ruling on whether a tour is an eligible tour package under the FCTIP. This rulings service gives tour operators certainty on whether they are supplying eligible tour packages, and makes it easier for them to receive their GST/HST rebates under the FCTIP in a timely fashion. For more information, see Notice 273 GST/HST Rulings Service – Eligibility of Tours under the Foreign Convention and Tour Incentive Program.
Page details
- Date modified:
- 2021-12-14