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: 153147
February 18, 2014
Dear [Client]:
Subject: GST/HST RULING
FCTIP-Tour Package Eligibility
Thank you for your fax of [mm/dd/yyyy], concerning eligibility for a rebate for purposes of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) under the Foreign Convention and Tour Incentive Program (FCTIP).
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Effective April 1, 2013, the 12% HST in British Columbia has been replaced by the 5% GST and a provincial sales tax.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 fax of April 23, 2013 and information on your website, we understand the following:
1. […] (hereafter, the School) is a non-resident secondary school that specializes in international languages, and international arts. The School is not registered for GST/HST purposes.
2. The School organized a trip for their grade […] students to […] [City A, Province 1] that took place during the period from [mm/dd/yyyy] to [mm/dd/yyyy]. The purpose of the trip is described by the School as follows:
* As an international-focused high school, we would like our students to have an 'international’ experience by visiting one of North America’s most diverse cities.
* As a language-focused high school, we would like our students to interact with Francophone, Hispanophone and Sinophone cultures, all of whom reside in [City A].
3. The School acquired short-term accommodation in [City A] along with meals, guided tours of [City A] and transportation services from different sources for the trip.
4. The trip created by the School included the short-term accommodation and services described above. The trip was sold by the School to their students for an all-inclusive price.
RULING REQUESTED
You would like to know if the trip that the School has created is an eligible tour package for purposes of the FCTIP.
RULING GIVEN
Based on the facts set out above, we rule that the trip is an eligible tour package 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 Excise Tax Act (ETA), regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.
EXPLANATION
The trip that the School created is an eligible tour package for purposes of the FCTIP since it is a tour package that includes short-term and/or camping accommodation in Canada, at least one service and it is sold for an all-inclusive price.
ADDITIONAL INFORMATION
Under the FCTIP, a non-resident person that is not registered for GST/HST purposes that sells eligible tour packages to non-residents may be entitled to a rebate of 100% of the GST/HST payable on short-term and/or camping accommodation in Canada purchased from a GST/HST registrant.
Generally, a person is entitled to a rebate where it:
* pays GST/HST on the purchase of the short-term and/or camping accommodation in Canada;
* assembles the accommodation in an eligible tour package which it sells to non-resident persons; and
* meets all other conditions and restrictions set out in the ETA. Information on these conditions and restrictions can be found in guide RC4160, Rebate for Tour Packages, Foreign Conventions, and Non-Resident Exhibitor Purchases.
[…]. The School should file Form GST 115, GST/HST Rebate Application for Tour Packages, to claim the rebate. When filing Form GST115 with the Canada Revenue Agency, a copy of this ruling may be attached as evidence that the trip is an eligible tour package for purposes of the FCTIP.
This ruling should not be construed as being a declaration by the Canada Revenue Agency that the School is entitled to a rebate.
More information on the FCTIP is available at www.cra.gc.ca/visitors.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-952-8814. 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,
Christiana De Benedetti
Services and Intangibles Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate