Ontario and British Columbia: Transition to the Harmonized Sales Tax – Admissions

GST/HST Info Sheet GI-058
February 2010

This info sheet explains whether the goods and services tax (GST) or the HST applies to admissions to events that take place during the period that includes the July 1, 2010 implementation date for the HST in Ontario and British Columbia.

The rules explained in this info sheet apply to admissions to a place of amusement, a seminar, an event or an activity in Ontario or British Columbia. The term "event" means any of these places or activities. Admissions to an event are intangible personal property for GST/HST purposes.

In this info sheet, all suppliers referred to in the examples are GST/HST registrants and the supplies are taxable. "Taxable" means subject to the 5% GST or to the HST rate in effect in a particular province.

Introduction

To determine whether GST or HST applies to an admission to an event that takes place during the period that includes July 1, 2010, suppliers must consider:

• when the event to which the admission relates takes place;
• when an amount for the admission becomes due; and
• whether an amount is paid without having become due.

Appendix A to this info sheet has a chart that illustrates the transitional rules for admissions to events that take place during the period that includes July 1, 2010.

Appendix B to this info sheet contains information on when an amount becomes due and when an amount is paid without having become due.

When 90% or more of the event takes place before July 2010

When 90% or more of the event to which the admission relates takes place before July 2010, only the GST applies to any amount that becomes due or is paid without having become due. Suppliers account for the GST in their GST/HST returns according to the normal rules.

When more than 10% of the event takes place on or after July 1, 2010

The following rules apply when more than 10% of the event to which the admission relates takes place on or after July 1, 2010:

• Regardless of when the event takes place, GST applies to any amount that becomes due or is paid without having become due on or before October 14, 2009.
• Regardless of when the event takes place, GST applies to any amount that becomes due or is paid without having become due after October 14, 2009, and before May 2010. Certain purchasers have to self-assess the provincial part of the HST. For more details on self-assessment, see the information under the heading "Self-assessing the provincial part of the HST".
• When an amount becomes due or is paid without having become due on or after May 1, 2010:
• GST applies to any amount that relates to the portion of the event that takes place before July 2010; and
• HST applies to any amount that relates to the portion of the event that takes place on or after July 1, 2010.

Accounting for the GST/HST when more than 10% of the event takes place on or after July 1, 2010

The rules listed above explained whether GST or HST applies to admissions to an event. The following rules explain who accounts for the tax and when it should be accounted for.

When an amount becomes due or is paid after October 14, 2009, and before May 2010

When an amount becomes due or is paid without having become due after October 14, 2009, and before May 2010, the supplier charges the purchaser GST and accounts for the tax in its GST/HST return according to the normal rules. Certain purchasers have to self-assess the provincial part of the HST. For more details on self-assessment, see the information under the heading "Self-assessing the provincial part of the HST".

When an amount becomes due or is paid on or after May 1, 2010, and before July 2010

When GST applies to an admission or a portion of an admission, the supplier accounts for the tax in its GST/HST return according to the normal rules.

When HST applies to an admission or a portion of an admission, the supplier accounts for:

• the 5% federal part of the HST in its GST/HST return according to the normal rules; and
• the provincial part of the HST in its GST/HST return for the reporting period that includes July 1, 2010. The purchaser, if a registrant, would be able to claim any eligible input tax credit in its GST/HST return for the reporting period that includes July 1, 2010.

When an amount becomes due or is paid on or after July 1, 2010

When an amount becomes due or is paid without having become due on or after July 1, 2010, the supplier accounts for the GST and/or the HST in its GST/HST return according to the normal rules.

Self-assessing the provincial part of the HST

Certain non-consumers have to self-assess the provincial part of the HST when they purchase an admission to an event that takes place on or after July 1, 2010, and an amount for the admission becomes due or is paid without having become due after October 14, 2009, and before May 2010.

This self-assessment rule applies to a person that is a sole proprietor, a business, an organization, a public service body, or any other entity.

A non-consumer that purchases an admission to an event must self-assess the provincial part of the HST if the non-consumer:

• does not purchase the admission for consumption, use or supply exclusively in its commercial activity;
• is using a simplified accounting method to calculate its net tax;
• is purchasing an admission that is subject to input tax credit recapture;
• is a charity that uses the net tax calculation method for charities; or
• is a selected listed financial institution.

The non-consumer accounts for the provincial part of HST either:

• on line 405 of its GST/HST return for the reporting period that includes July 1, 2010, if the due date for that return is before November 2010; or
• in any other case, by completing Form GST489, Return for Self-Assessment for the Provincial Part of Harmonized Sales Tax (HST) . and paying that amount before November 2010.

Appendix A – Transitional rules for admissions

The following illustrates the transitional rules for admissions to events that take place during the period that includes July 1, 2010.

Appendix B –When an amount becomes due or is paid without having become due

The following rules explain when an amount becomes due and when an amount is paid without having become due. These rules apply to services and supplies of tangible and intangible personal property.

Amount becomes due

An amount for a supply becomes due on the earliest of the following days:

• the date of an invoice for that amount for the supply;
• the day the supplier first issues that invoice for the amount;
• if there is an undue delay in issuing that invoice, the day the supplier would have issued the invoice; and
• the day the client is required to pay that amount under a written agreement.

For information on what is a written agreement for GST/HST purposes, refer to GST Memorandum 300-6-4,Agreements in Writing.

Amount is paid without having become due

An amount is paid without having become due when a client pays an amount due for a supply:

• before the date of an invoice, or before a supplier issues, or would have issued, the invoice; or
• before the client is required to pay the amount under a written agreement and no invoice has been issued.

More than one invoice or payment

Sometimes, more than one amount becomes due or is paid without having become due. This could happen when, for example, a supplier issues more than one invoice or when the client is required to make more than one payment under a written agreement. In this case, for each amount, the supplier must determine whether GST or HST applies. The supplier cannot, for example, just apply the HST on the final amount or on the total amount payable for the supply.

Date modified:

2010-02-16