GST/HST rebate for tour packages
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GST/HST rebate for tour packages
Notice to the reader
Under proposed changes, 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 if the accommodations are supplied after March 22, 2017. However, the rebate may still be available if the accommodations are supplied in 2017 and the amount owing for those accommodations is paid in full before January 1, 2018.
On this page
Find out if you are eligible the rebate
Determine what is an eligible tour package for the rebate
How to calculate and claim the rebate
When to file and where to send the rebate application
What information to include with the rebate application and what records to keep
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 for a tour package
How to request a GST/HST ruling on the eligibility of a tour package
Find out if you are eligible the rebate
You may be eligible for a rebate of the GST/HST paid on an eligible tour package if one of the situations described below apply:
| If you are | Rebate eligibility | To qualify you must meet all of the following conditions |
|---|---|---|
| A non-resident tour operator and you are not registered for the GST/HST |
You may be eligible if one of the following situations apply:
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|
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A non-resident individual visiting Canada and you are not registered for the GST/HST OR A non-resident business or organization that is not registered for the GST/HST and you purchased the eligible tour package for use by an employee or client |
You may be eligible if you purchased an eligible tour package and the supplier did not pay or credit you with the rebate amount |
|
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 FCTIP rebate.
Determine what is an eligible tour package for the rebate
To be an eligible tour package for the FCTIP rebate, the tour package must be sold for an all-inclusive price, and it must include the following elements:
- short term and/or camping accommodation in Canada
- at least one service
See example - Eligible tour packages
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. |
See example - Non-eligible tour packages
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. |
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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 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. |
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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. |
How to calculate and claim 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 you purchased 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).
To claim your rebate, use Form GST115, GST/HST Rebate Application for Tour Packages.
Tour package you purchased and resold (tour operators)
Rebate for tour package you purchased and resold (tour operators)
If you are eligible to claim a rebate for the tax paid on an eligible tour package you purchased 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 ineligible 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 5 nights in Canada, with 2 nights of accommodation in a Canadian hotel and the rest on a train. The GST on the tour package was $45. Only the 2 nights of accommodation at the hotel are eligible as the nights spent on the train do not qualify as short-term accommodation. With only 2 of 5 nights eligible as short-term accommodation, the 50% GST rebate is reduced as follows: (2 ÷ 5) × (50% × $45) = $9 The rebate amount is calculated as $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)
Rebate for non-resident individuals, organizations, or businesses (other than tour operators)
If the supplier did not pay or credit you with the rebate amount 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 Compare the general vs the quick calculation method.
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 5 nights in Canada, with 2 nights of accommodation in a Canadian hotel and the rest on a train. The GST on the tour package was $45. Only the 2 nights of accommodation at the hotel are eligible as the nights spent on the train do not qualify as short-term accommodation. With only 2 of 5 nights eligible as short-term accommodation, the 50% GST rebate is reduced as follows: (2 ÷ 5) × (50% × $45) = $9 The rebate amount is calculated as $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 (in other words, you made the purchase for your own personal use and enjoyment or that of another individual) that purchased 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 purchases an eligible tour package from a Canadian tour operator and pays the 5% GST. The package includes 2 nights’ accommodation in a hotel and 3 nights’ accommodation at a campground. |
$5 × 2 nights of short-term accommodation $1 × 3 nights of camping accommodation The rebate amount is calculated as $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.
Compare the general vs the quick calculation method
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 a single 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 quick calculation method The rebate amount is calculated as $35. Note that under the quick calculation method, you can only claim a rebate for one tour package. Using the general calculation method Equal to 50% of the HST paid on all four tour packages $1,040 × 50% = $520 The rebate amount is calculated as $520. |
To claim your rebate, use Form GST115, GST/HST Rebate Application for Tour Packages.
When to file and where to send the rebate application
You have to file your 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 completed form with supporting documents attached to:
Summerside Tax Centre
275 Pope Road
Summerside PE C1N 6A2
CANADA
What information to include with the rebate application and what records to keep
You have to send us copies (do not send us original receipts) of all of the following supporting documents with your rebate claim:
- invoices or receipts showing the GST/HST you paid on the eligible tour package(s)
- itineraries or detailed descriptions for the eligible tour packages, including the number of nights of accommodation in Canada
You can provide the itineraries on paper or CD. For other options, see How to contact us. We 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, your rebate will be denied. We will not return any receipts or supporting documentation submitted with your application.
If you are a tour operator, you must also keep all of the following documents in your records and make them available if we ask to see them:
- a list of names and addresses of the non-residents who purchased the tour packages
- a list of names and addresses of the non-residents individuals who stayed in the accommodation
- the name(s) of the agent(s) through whom you sold the tour packages (if applicable)
- copies of the original invoices issued to your clients
Determine what type of information is required on the supporting documents
The supporting documents must indicate that the non-resident paid the GST/HST on the supply of the short-term or camping accommodation, or the eligible tour package, as the case may be. For example, an invoice that shows only the tax payable (not paid) is not sufficient.
The supporting documents must demonstrate that the packages are 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 other words, they are eligible tour packages). In addition, the documents must specify the number of nights of short-term and/or camping accommodation in Canada included in the packages.
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 capable of being reproduced on paper are acceptable.
The CRA will also accept documentation prepared by non-resident non-registered tour operators (in other words, reverse invoicing), provided the documentation includes the information that would be found on the original invoices or receipts prepared by the registrant supplier. This information must include:
- the supplier’s name, address, telephone number, and business number
- the recipient’s name, address, and telephone number
- details concerning 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, copy of cancelled cheque or wire payment confirmation number)
What to do if someone else is completing and filing the rebate application for you
If you enter into an agreement with someone else to complete and file your rebate application for you, see What to do if someone else is completing and filing your rebate application for you.
What to do if you choose to credit or pay the GST/HST rebate for a tour package
If you are registered for the GST/HST and you supply eligible tour packages, you can choose to credit or pay 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 paid or credited the rebate under the FCTIP.
How to request a GST/HST ruling on the eligibility of a tour package
Under the GST/HST rulings service, tour operators may choose to request a ruling on whether a tour is an eligible tour package for purposes of the FCTIP. This rulings service gives tour operators certainty on whether they are supplying eligible tour packages. This will help tour operators or their non-resident customers to receive their GST/HST rebates under the FCTIP in a timely fashion. For more information, go to GST/HST Rulings and interpretations, or see Notice 273 GST/HST Rulings Service - Eligibility of Tours under the Foreign Convention and Tour Incentive Program.
- Date modified:
- 2017-03-27