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, 11th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 219487
Dear [Client]:
Subject: GST/HST RULING
[…][Whether a conference is a foreign convention]
Thank you for your letter of [mm/dd/yyyy], concerning whether the above meeting qualifies as a foreign convention for purposes of the goods and services tax/harmonized sales tax (GST/HST).
The HST applies in the participating provinces at the following rates: 13% in Ontario; and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
STATEMENT OF FACTS
We understand the facts to be as follows:
1. The [#] meeting of the […][Conference] will be held in […][Canada], from [mm/dd] to [mm/dd/yyyy], and will host the latest theories and research from the world’s best […][field of research] researchers.
2. The overall planning of the [Conference] is organized by […] (the […][Organization]) and […].
3. According to the [Organization’s] By-Laws and its website […]:
- The [Organization] is organized as a not-for-profit corporation under the laws of […][Country X] for scientific, charitable, and educational purposes.
- […][Description of the Organization’s mission].
- […][Description of the Organization’s membership].
- The [Organization] is governed by [#] directors comprised of a [#]-person executive committee (Past President, President, President-Elect, Secretary, and Treasurer) and [#] members-at-large. Presently, […][less than 10% of Directors are] Canadian and [#] directors are non-residents.
- The President-Elect is elected to serve a [#]-year term before automatic progression to a [#]-year term as President and a subsequent [#]-year term as Past President.
- The President-Elect is responsible for appointing a […][Conference Chair] for the […] meeting that occurs during the term the President-Elect will be President.
- Under the direction of a Board-approved [Conference Chair], the […][Organizing Committee] oversees the planning, development, confirmation and implementation of the scientific program for the […] meeting of the [Organization].
4. The [Organization’s] website provides the following information on the [Conference]:
- [Description of the Conference’s theme].
- The [Conference] is being organized under the leadership of the [Organization’s] President, […] ([…][affiliated university outside Canada]) and President-Elect […] ([…][affiliated university outside Canada]), with support from the Board of Directors and multiple subcommittees.
- […][Organizing Committee member names and affiliated university. - 67% of these members are outside Canada] .
- The sessions at the [Conference] are delivered in three formats:
- The pre-conference workshops are to provide teaching opportunities, allowing participants to acquire or extend their skills, learn about new techniques or technologies, or gain in-depth knowledge in a particular topic relating to [the field of research].
- Poster and oral sessions are for material that can be explained briefly and that is suited for graphic or visual presentation, and/or where the presenter would benefit from high levels of interaction and discussion.
- A paper symposium session is a cohesive cluster of research presentations and theoretical perspectives. To attain cohesion, the symposium should focus on a specific topic and emphasize conceptual issues and the integration of findings.
- The [Organization] will review abstract submissions for the sessions under these [#] panels: […].
5. In your submission, you made the following statements on behalf of the [Organization]:
- The principal purpose of the [Conference] is not to provide any of the following:
- provide any type of amusement, entertainment, or recreation
- conduct contests, or games of chance, or
- transact the business of the convenor or attendees in the course of a trade show open to the general public, or otherwise than in the course of a trade show.
- The [Organization] expects that approximately [#] people will attend the [Conference] and that at least 85% of the paid admissions will be for non-residents of Canada based on statistics of the past three meetings:
- 2020 – Virtual Meeting – Total delegates = [#] (8% Canadian, top 3 countries: [Country X], Canada, [Country Y])
- 2018 – [City B, Country X] – Total delegates = [#] (7% Canadian, top 3 countries: [Country X], Canada, [Country Y])
- 2016 – [City C, Country X] – Total delegates = [#] (8% Canadian, top 3 countries: [Country X], Canada, [Country Y])
- The [Organization] will be in charge of supplying admissions to the [Conference] to attendees, as well as space to exhibitors who are authorized to promote their products at the [Conference].
6. According to the agenda you submitted, the [Conference] will consist of pre-conference workshops on the first day, two […] addresses and one […] reception, [#] […] keynote speakers, [#] […] sessions, [#] poster and exhibitor sessions and [#] […] awards ceremony including a […] meeting.
RULING REQUESTED
You would like to know if the [Conference] is a foreign convention?
RULING GIVEN
Based on the facts set out above, we rule that the [Conference] is a foreign convention.
The sponsor of a convention is defined under subsection 123(1) to mean the person who convenes the convention and supplies admissions to it. The sponsor must maintain documents supporting their calculation of the percentage of admissions that are reasonably expected to be supplied to non-residents in order to prove that a convention is a foreign convention, and make these documents available to the Canada Revenue Agency (CRA) on request. Under subsection 286(1), these documents must be kept in Canada unless the sponsor gets permission from the CRA to maintain them outside Canada.
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the CRA is bound by the ruling(s) given in this letter provided that: none of the issues discussed in the ruling(s) are currently under audit, objection, or appeal; no future changes to the ETA, regulations or the CRA’s interpretative policy affect its validity; and all relevant facts and transactions have been fully and accurately disclosed.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 343-553-3517. 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,
Russell Vermette
Services and Intangibles Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
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