Fact sheet

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Results of the Visitor Rebate Program Review

Results of a review of the GST/HST Visitor Rebate Program were announced in the February 24, 1998 Budget.

The review of the program was first announced in the 1997 Federal Budget and was carried out by the Department of Finance with the participation of Revenue Canada. It also involved extensive consultations with the tourism industry with a view to more effectively promote Canada as a tourist destination, as well as support the tourism industry in the creation of employment.

Under the program, rebates are available to non-residents of Canada for GST/HST paid on short-term accommodation and eligible goods they export from Canada. In addition, sponsors and unregistered organizers of foreign conventions held in Canada can claim a rebate for GST/HST paid on certain goods and services they use in the course of the convention.

Results of the review

As a result of the review, a number of legislative amendments are being proposed:

• Effective immediately, the monthly and quarterly filing restrictions for non-resident businesses and individuals are eliminated.
  
  
• For conventions held after February 24, 1998, for which all admissions are sold after that date, sponsors and unregistered organizers of foreign conventions will be eligible to claim a rebate of 50 percent of the GST/HST they paid for food, beverage, and catering services related to the convention.
  
  
• When a campsite is made available after June 1998, the GST/HST paid on campsite fees, including hookup charges, is eligible for a rebate.

An additional measure will help ensure that goods claimed through the program are actually exported from Canada. Revenue Canada will implement an enhanced verification procedure relating to rebate claims filed in respect of goods exported from Canada. The procedure will require inspection of goods at land border crossings, airports, and other exit points. This verification is consistent with procedures in other countries with a value-added tax system similar to the GST/HST, that refund the tax on purchases made by non-residents. More details on this proposed enhanced verification procedure will be announced after consultation with affected industry members.

For more information

For more information about these proposed administrative and legislative changes, contact the Business Enquiries section of your Revenue Canada tax services office. You can find the number for the office listed under "Revenue Canada" in the Government of Canada section of the telephone book. As well, you can get more information on the Visitor Rebate Program home page, located on Revenue Canada's internet site at the following address:

www.cra-adrc/visitors/index.html

Note This fact sheet includes announced tax changes that were not law at the time of printing. Once they become law, they will apply on the dates noted in the fact sheet.

Date modified:

1998-02-01