Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 151465
Business Number: [...]
August 27, 2013
Dear [Client]:
Subject: GST/HST RULING
[...] hockey camp
Thank you for your fax of [mm/dd/yyyy], concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to hockey camps provided to non-resident students.
The HST applies in the participating provinces at the following rates: 13% in Ontario, New Brunswick and Newfoundland and Labrador, 14% in Prince Edward Island (effective April 1, 2013) and 15% in Nova Scotia. The GST applies in the rest of Canada at the rate of 5%.
Effective April 1, 2013, the 12% HST in British Columbia has been replaced by the 5% GST and a provincial sales tax.
Statement of Facts
Based on your [correspondence], and [...], we understand the following:
1. [...] ([...][ACo]) is [...] registered for GST/HST purposes under Business Number [...].
2. [ACo] is a [...] [describes mandate and features of ACo]
3. [ACo] provides a variety of hockey [...] programs for [...] athletes, including [...] hockey camps. [ACo's] [...] hockey camps are intended to challenge hockey players and to offer them instruction and encouragement with the goal of improving their overall skills and performance in the game of hockey.
4. [ACo] provides a [...] hockey camp which it markets as [...] (Package 1) and which takes place [...] [lists camp dates]. Package 1 is provided to athletes at the [...] levels in hockey who are not resident in Canada.
5. Package 1 includes [...] short-term accommodation in Canada at [...] in [...] [a City], meals, [...] hours of ice per day, coaching services ([...] coach to student ratio), supervised conditioning and strength training, video and lecture sessions, [...], access to [...] [sport] facilities ([...].), weekend excursions, and airport transfers.
6. Package 1 includes services such as coaching services, [...], supervisory services, and transportation services.
7. [ACo] sells Package 1 for an all-inclusive price.
8. [ACo] also provides a parents' package (Package 2) that provides an opportunity for parents to accompany an athlete [...]. Package 2 [...]takes place during the same time period as Package 1. Package 2 is provided to parents of athletes acquiring Package 1 who are not resident in Canada.
9. Package 2 includes [...] short-term accommodation in Canada at [...] in [...] [a city], meals, and access to [...] [sport] facilities ([...].).
10. Package 2 does not include any services.
11. [ACo] sells Package 2 for an all-inclusive price. A person may acquire Package 2 for [...] up to the duration for which the accompanied athlete acquires Package 1.
Ruling Requested
You would like to know if Package 1 and Package 2 are eligible tour packages for purposes of the Foreign Convention and Tour Incentive Program (FCTIP).
Ruling Given
Based on the facts set out above, we rule that Package 1 and Package 2 are not eligible tour packages for purposes of the FCTIP.
This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.
Explanation
For GST/HST purposes, a tour package is a combination of two or more services, or of property and services, that includes transportation services, accommodation, a right to use a campground or trailer park, or guide or interpreter services, when the property and services are sold together for an all-inclusive price. For purposes of the FCTIP, an eligible tour package is a tour package that includes short-term and/or camping accommodation in Canada but does not include a tour package that includes a convention facility or related convention supplies.
All combinations of two or more services or of property and services are not necessarily tour packages for GST/HST purposes. The nature and purpose of the package being sold has to be considered in order to determine whether it is a tour package or something else. If the overall purpose of a package is to provide a specialized service, it is not considered to be a tour package for GST/HST purposes. Examples of such packages are wellness packages, educational and counselling packages, children's overnight camps, sport tournaments, and concert tours.
Package 1 is not an eligible tour package because the overall purpose of what is being supplied is a specialized service of hockey instruction. Package 2 is not an eligible tour package because it does not include any services.
More information on the FCTIP is available at www.cra.gc.ca/visitors including GST/HST Info Sheet GI-044, Foreign Convention and Tour Incentive Program - Tour Packages: What is an Eligible Tour Package.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 604-658-8528. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
Rosalind Erceg
Services and Intangibles Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
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