Conventions

GST/HST memorandum 27-2

September 2025

This version replaces the one dated August 2009. This memorandum has been updated to reflect the addition of definitions in subsection 252.4(0.1) as a result of the repeal of section 252.1.

Except as otherwise noted, all statutory references in this publication are to the provisions of the Excise Tax Act (ETA). The information in this publication does not replace the law found in the ETA and its regulations.

If this information does not completely address your particular situation, you may wish to refer to the ETA or relevant regulation, or call GST/HST Rulings at 1‑800‑959‑8287 for additional information. If you require certainty with respect to any particular GST/HST matter, you may request a ruling. GST/HST Memorandum 1-4, Excise and GST/HST Rulings and Interpretations Service, explains how to obtain a ruling or an interpretation and lists the GST/HST rulings centres.

If you are located in Quebec and wish to request a ruling related to the GST/HST, please call Revenu Québec at 1‑800‑567‑4692. You may also visit the Revenu Québec website at revenuquebec.ca to obtain general information.

For listed financial institutions that are selected listed financial institutions (SLFIs) for GST/HST or Quebec sales tax (QST) purposes or both, whether or not they are located in Quebec, the CRA administers the GST/HST and the QST. If you wish to make a technical GST/HST or QST enquiry related to SLFIs, please call 1‑855‑666‑5166.

GST/HST rates

Reference in this publication is made to supplies that are subject to the GST or the HST. The GST/HST rates are those that were in effect at the time of publishing. For the list of all applicable GST/HST rates (current and historic), go to GST/HST calculator (and rates).

If you are uncertain as to whether a supply is made in a participating province, refer to GST/HST Memorandum 3-3-2, Place of Supply in a Province – Overview.

Table of contents

• General
• Characterizing the supply
  • Convention
    • Formal meeting or assembly
    • Not open to the general public
  • Exclusions from convention
    • Principal
    • To transact the business of the convenor or attendees
    • Incentive trips that include business meetings
• Sponsor
• Determining if the convention is domestic or foreign
  • Domestic convention
  • Foreign convention
    • Percentage of admissions
    • Head office outside Canada
• Organizers
  • First requirement: Person that acquires the convention facility or related convention supplies
    • Convention facility
    • Related convention supplies
  • Second requirement: Person that organizes the convention for the sponsor
• Supplies made by sponsors of foreign conventions
• Exhibitors
• Effect of section 189.2
• Rebate for sponsors and non-registered organizers of foreign conventions
  • Rebate to sponsors of foreign conventions
  • Rebate to non-registered organizers of foreign conventions
  • Rebate for accommodation
• Rebate procedures for sponsors and non-registered organizers of foreign conventions
  • Filing a rebate application
  • Rebate paid or credited by eligible suppliers
    • Rebate amount paid or credited by eligible supplier - organizer
    • Rebate amount paid or credited by eligible supplier - operator of convention facility
    • Rebate amount paid or credited by eligible supplier - supplier of accommodation
    • Documentary evidence
    • Supplier may claim deduction
    • Filing of information
  • Liability of eligible supplier and sponsor or non-registered organizer
  • Liability of sponsor or non-registered organizer
• Sponsors of domestic conventions
  • Registration required
    • Small supplier provisions do not apply
  • Supplies of admissions to non-resident attendees
    • Calculating the GST/HST payable
  • Supplies to exhibitors
• Rebate for non-resident exhibitors
• Rebate for an amount paid by an exhibitor's employee
  • Reimbursements
  • Amount deemed paid by the exhibitor
• Tax paid in error
• Appendix 1 – Examples of related convention supplies
• Appendix 2 – Confirmation of foreign convention
• Appendix 3 – Confirmation that the exhibitor reimbursed an employee for expenses incurred in relation to a convention

General

1. Generally, the GST/HST applies to taxable supplies of admissions, property, and services for consumption or use at a convention in Canada. However, the ETA provides relief to certain persons that sponsor, organize, or attend such conventions provided they meet the eligibility requirements.

2. This memorandum explains the eligibility requirements that sponsors and non-registered organizers of foreign conventions must meet to claim a GST/HST rebate in respect of supplies of the convention facility and related convention supplies. It also explains how non-registered non-resident exhibitors attending conventions in Canada may claim a GST/HST rebate in respect of the tax paid on the acquisition of exhibition space at a convention and related convention supplies. It provides details on how registrant suppliers can pay to, or credit an amount on account of a rebate in favour of sponsors and non-registered organizers of foreign conventions. It also explains how the GST/HST may or may not apply to supplies made by sponsors of domestic or foreign conventions, including admissions and supplies made to exhibitors.

Characterizing the supply

Convention

3. Under subsection 123(1), convention means "a formal meeting or assembly that is not open to the general public, but does not include a meeting or assembly the principal purpose of which is

1. to provide any type of amusement, entertainment or recreation,
2. to conduct contests or games of chance, or
3. to transact the business of the convenor or attendees
   1. in the course of a trade show that is open to the general public, or
   2. otherwise than in the course of a trade show"

4. One cannot assume that every formal meeting or assembly that is not open to the general public is a convention for GST/HST purposes. As in any transaction, it is important to properly characterize what is being supplied to determine how the GST/HST applies to the particular transaction. The nature and purpose of the formal meeting or assembly has to be considered to determine whether it is a convention or not.

5. A formal meeting, the purpose of which is to provide instruction (such as a workshop, seminar, or training session) is not, by itself, a convention. As well, an awards ceremony or a cocktail reception is not, by itself, a convention. A formal meeting or assembly must meet the requirements of the definition as explained in the following paragraphs of this memorandum to be a convention for GST/HST purposes.

Formal meeting or assembly

6. The expression formal meeting or assembly is not defined in the ETA, however, it is generally interpreted to mean a gathering of people that is organized and structured (planned in advance and with an agenda or a program) and held for a specific, identified purpose (exchanging information or discussing and making decisions regarding issues and concerns of interest to the group).

Not open to the general public

7. The expression not open to the general public is not defined in the ETA, however, it is generally interpreted to mean that admittance to a formal meeting or assembly is restricted to members of an organization or a targeted audience of the public having a particular interest in, or special connection with, the event.

8. All of the following factors may be considered in determining whether a formal meeting or assembly is not open to the general public:

• the nature of the meeting or assembly
• who usually attends
• how it is publicized

9. The nature of the meeting or assembly, the content of the presentations, and the subject matter of the discussions may indicate whether the event is not open to the general public. The general public would normally not be interested in attending a formal meeting or assembly the purpose of which is to exchange information of a scientific nature or to discuss technical issues on a specific subject, such as recent developments in aeronautics.

10. Who usually attends a formal meeting or assembly may indicate whether the event is not open to the general public. Participants in a convention are usually members of associations or organizations sharing the same goal, or people having the same interest in a particular field. Generally, only these people would be targeted to attend the formal meeting or assembly, and not the general public.

11. The means of communicating the invitation to a formal meeting or assembly may indicate whether the event is not open to the general public. Personal invitations by mail or email, advertisements in specialized publications, and posters displayed in selected places targeting only people who may have an interest in the formal meeting or assembly are indicators that the event is not open to the general public.

12. The fact that the information and registration form for a formal meeting or assembly are on the Internet does not necessarily indicate that the event is open to the general public. Programs, agendas, and registration forms could be posted on the Internet to facilitate the dissemination of information to participants and to facilitate registration to the formal meeting or assembly.

13. Posters displayed in public places may be an indication that the general public is invited to the formal meeting or assembly.

14. The definition of convention does not require attendees to register to attend a formal meeting or assembly. Therefore, registration to a formal meeting or assembly does not automatically mean that the event is not open to the general public. Alternatively, the lack of registration does not necessarily mean that a formal meeting or assembly is open to the general public.

Exclusions from convention

15. The meaning of convention excludes a formal meeting or assembly the principal purpose of which is any of the following:

• to provide any type of amusement, entertainment, or recreation
• to conduct contests or games of chance
• to transact the business of the convenor or attendees either in the course of a trade show that is open to the general public, or otherwise than in the course of a trade show

Principal

16. The term principal is not defined in the ETA but is generally synonymous with the words chief or main.

To transact the business of the convenor or attendees

17. The expression to transact the business of the convenor or attendees is not defined in the ETA, however, it is generally interpreted to mean conducting or carrying out the operation or management of a business. This includes business meetings that the convenor or attendees would normally conduct at their place of business (such as sales meetings, board of directors' meetings, or contract negotiations).

Incentive trips that include business meetings

18. An incentive trip that includes business meetings is usually not a convention. As the definition of convention excludes a formal meeting or assembly the principal purpose of which is to transact the business of the convenor or attendees, incentive trips that have business meetings as their principal purpose are excluded from the definition of convention.

19. Where it is established that a formal meeting or assembly is a convention for GST/HST purposes, it is then important to determine who the sponsor of the convention is. This is necessary, in part, to determine whether the convention is a foreign or domestic convention.

Sponsor

20. Under subsection 123(1), a sponsor of a convention means "the person who convenes the convention and supplies admissions to it".

21. The matter of who is the sponsor of a convention is a question of fact, however, certain requirements must be met to be a sponsor of a convention for GST/HST purposes. A sponsor must be a person as defined in subsection 123(1). A person means "an individual, a partnership, a corporation, the estate of a deceased individual, a trust, or a body that is a society, union, club, association, commission or other organization of any kind".

22. To be a sponsor of a convention, the person must convene the convention. The term convene is not defined in the ETA, however, it is generally interpreted to mean the summoning or calling of people to come together for the convention.

23. To be a sponsor of a convention, the person must supply the admissions to the convention. Under subsection 123(1), supply means "subject to sections 133 and 134, the provision of property or a service in any manner, including sale, transfer, barter, exchange, licence, rental, lease, gift or disposition".

24. Under subsection 123(1), admission "in respect of a place of amusement or a seminar, an activity or an event, means a right of entry or access to, or attendance at, the place of amusement or the seminar, activity or event".

25. There is no requirement that a sponsor of a convention charge a fee for the supply of admissions. Supplying admissions for no consideration does not preclude a person from being a sponsor.

26. A sponsor, as defined in the ETA, should not be confused with a person that financially supports an event by purchasing property or services for use in publicizing the person's business. A person that supports an event through financial sponsorship opportunities is not a sponsor of a convention for GST/HST purposes. However, this person may be an exhibitor.

Determining if the convention is domestic or foreign

27. After it has been determined that a formal meeting or assembly is a convention and who is the sponsor, it is then important to determine whether the event is a foreign or a domestic convention. The distinction is important for determining which legislative provisions apply to supplies made or acquired in connection with the convention.

Domestic convention

28. The expression domestic convention is not defined in the ETA, however, it is generally used when referring to a convention that is not a foreign convention.

Foreign convention

29. Under subsection 123(1), the term foreign convention means "a convention

1. at least 75% of the admissions to which are, at the time the sponsor of the convention determines the amount to be charged as consideration therefor, reasonably expected to be supplied to non-resident persons, and
2. the sponsor of which is an organization whose head office is situated outside Canada or, where the organization has no head office, the member, or majority of members, of which having management and control of the organization is or are non-resident".

30. A convention held in Canada is a foreign convention for GST/HST purposes when both requirements of the definition have been met. Whether the sponsor of the convention is a registrant or a non-registrant for GST/HST purposes is irrelevant for the purposes of determining whether the convention is a foreign convention.

31. To determine if the first requirement of the definition of foreign convention has been met, the sponsor has to determine the percentage of admissions that are reasonably expected to be supplied to non-residents. This determination has to be done at the time the sponsor determines the consideration for the supplies of the admissions. If the percentage of admissions that are reasonably expected to be supplied to non-residents is at least 75%, the convention would have met the first requirement of the definition of foreign convention.

32. Under subsection 123(1), the term non-resident means "not resident in Canada". For more information on how to determine residence status, refer to GST/HST Memorandum 3-4, Residence.

Percentage of admissions

33. Any reasonable method can be used to determine whether at least 75% of the admissions are reasonably expected to be supplied to non-residents. For example, the sponsor can use any of the following methods to determine the percentage of admissions expected to be supplied to non-residents who:

• attended previous conventions
• are usually invited to attend the convention
• are listed as members of the organization

34. Where corporate memberships are involved, the sponsor must consider the number of admissions reasonably expected to be supplied to individuals within the corporation(s).

35. If, at the time of determining the amount to be charged as consideration for the admission, the sponsor determines that at least 75% of the admissions are reasonably expected to be supplied to non-residents, and discovers at a later time that less than 75% of the admissions were supplied to non-residents, the convention would still be a foreign convention.

36. Pursuant to section 286, sponsors must maintain documents supporting their calculation of the percentage of admissions reasonably expected to be supplied to non-residents to prove that a convention was a foreign convention, and make these documents available to the Canada Revenue Agency (CRA) on request. These documents must be in English or French, or a translation provided, and they must be kept in Canada unless the sponsor gets permission from the CRA to maintain them outside Canada.

37. For more information on the requirement to keep books and records, refer to GST/HST Memorandum 15-1, General Requirements for Books and Records.

Head office outside Canada

38. To determine if the second requirement of the definition of foreign convention under paragraph (b) has been met, the sponsor must determine if the organization's head office is situated outside Canada. If the organization has no head office, then the member, or the majority of the members, having management and control of the organization must be non-residents.

Organizers

39. A sponsor of a convention may be unable to co-ordinate all aspects of a convention and may contract another person to perform certain activities with respect to the convention. This person may be an organizer.

40. Under subsection 123(1), organizer of a convention means "a person who acquires the convention facility or related convention supplies and who organizes the convention for another person who is the sponsor of the convention".

41. The matter of who is the organizer of a convention is a question of fact. However, a person must meet the requirements of the definition, as explained in the following paragraphs of this memorandum, to be the organizer of a convention for GST/HST purposes.

First requirement: Person that acquires the convention facility or related convention supplies

42. To be the organizer of a convention, the person must acquire the convention facility or related convention supplies.

Convention facility

43. Under subsection 123(1), a convention facility means "real property that is acquired by way of lease, licence or similar arrangement by the sponsor or organizer of a convention for use exclusively as the site for the convention". The meaning of lease, licence, or similar arrangement is discussed in GST/HST Memorandum 19-1, Real Property and the GST/HST.

44. The real property must be used exclusively as the site for the convention. When a site used to hold a convention is also used to hold other events (a dinner or dance in conjunction with the convention), the site is still a convention facility.

Related convention supplies

45. Under subsection 123(1), related convention supplies means "property or services acquired, imported or brought into a participating province by a person exclusively for consumption, use or supply by the person in connection with a convention, but does not include

1. transportation services, other than a chartered service acquired by the person solely for the purpose of transporting attendees of the convention between any of the convention facilities, places of lodging of the attendees or transportation terminals,
2. entertainment,
3. except for the purposes of subsection 167.2(1) and section 252.4, property or services that are food or beverages or are supplied to the person under a contract for catering, or
4. property or services supplied by the person in connection with the convention for consideration that is separate from the consideration for the admission to the convention, unless the recipient of the supply is acquiring the property or services exclusively for consumption or use in the course of promoting, at the convention, property or services supplied by, or a business of, the recipient".

46. Refer to paragraph 101 of this memorandum for an explanation of subsection 167.2(1) and paragraphs 57 to 69 of this memorandum for an explanation of section 252.4. Refer also to Appendix 1 for examples of related convention supplies.

Second requirement: Person that organizes the convention for the sponsor

47. To be the organizer of a convention, the person must organize the convention for another person that is the sponsor of the convention. Generally, an organizer is a person that arranges, prepares, or puts the convention on or together for the sponsor. An organizer could be a consultant or a meeting planner. An organizer supplies a service to the sponsor and usually charges a fee for that service.

48. An in-house planner or a person acting as an agent of the sponsor is not an organizer for GST/HST purposes. Also, a person engaged as a subcontractor to provide equipment and/or labour, but that does not organize the convention for the sponsor, is not an organizer for GST/HST purposes.

Supplies made by sponsors of foreign conventions

49. Under section 189.2, certain supplies shall be deemed to have been made otherwise than in the course of a commercial activity of the sponsor. The sponsor of a foreign convention does not charge and account for the GST/HST on any of the following supplies:

1. a supply of an admission to the convention
2. a supply by way of lease, licence, or similar arrangement of real property for use by the recipient of the supply exclusively as the site for the promotion, at the convention, of property or services supplied by, or a business of, the recipient
3. a supply of related convention supplies to a recipient of a supply referred to in paragraph (b)

50. Consequently, the sponsor of a foreign convention does not charge and account for the GST/HST on these supplies, even if the sponsor is a GST/HST registrant. The provisions of section 189.2 apply to supplies made both to residents of Canada and to non-residents.

51. For information on supplies of real property by way of lease, licence, and similar arrangement, refer to GST/HST Memorandum 19-1.

Exhibitors

52. With respect to paragraphs 189.2(b) and (c), the recipient of the supply is generally referred to as an exhibitor. The term exhibitor is not defined in the ETA, however, it is generally interpreted to mean a person that rents exhibition space exclusively for use as a site for the promotion at a convention of the property or services provided by the exhibitor or its business.

Effect of section 189.2

53. The deeming provisions in section 189.2 have the following results:

• sponsors of foreign conventions are not required to register for GST/HST purposes under subsection 240(2) when making supplies of admissions to a convention in Canada
• registrant sponsors of foreign conventions treat the supplies included in section 189.2 separately from their commercial activities and do not charge and account for the GST/HST on those supplies included in section 189.2
• registrant sponsors of foreign conventions are not entitled to any input tax credits in respect of the GST/HST paid or payable on any property or services acquired, imported, or brought into a participating province, as the case may be, for consumption, use, or supply in connection with the supplies included in section 189.2

54. Taxable supplies of property and services that are not included in section 189.2 are subject to the GST/HST. For example, a registrant sponsor of a foreign convention must charge and account for the GST/HST on taxable supplies of property or services that either:

• are not included in the supply of admissions (educational materials or souvenirs)
• are not related convention supplies and that are supplied to exhibitors (property or services that are food or beverages or supplied under a contract for catering)

55. A non-registrant sponsor that makes taxable supplies that are not included in section 189.2 may be required to register and charge the GST/HST on these supplies. The usual rules of the ETA, including the place of supply rules in section 143, apply in determining whether the sponsor should be registered for the purposes of those supplies.

56. For more information on these rules, refer to GST/HST Memorandum 3-3, Place of Supply.

Rebate for sponsors and non-registered organizers of foreign conventions

57. Under subsection 252.4(1) or subsection 252.4(3), sponsors and non-registered organizers of foreign conventions held in Canada are eligible for a rebate of the GST/HST paid in respect of the convention facility and related convention supplies.

58. An in-house planner (an employee) acquiring related convention supplies on behalf of a sponsor is not an organizer for purposes of the rebate. The sponsor is the person acquiring the supplies, and consequently is the person that is eligible to claim a rebate.

59. An organizer of a foreign convention may act as an agent in acquiring related convention supplies on behalf of the sponsor, that in turn reimburses the organizer for the cost of the supplies plus the GST/HST paid. In this situation, the sponsor is the person acquiring the supplies and is the person that is eligible to claim a rebate.

60. For more information on agency, refer to GST/HST Policy Statement P-182R, Agency.

Rebate to sponsors of foreign conventions

61. Under subsection 252.4(1), a sponsor of a foreign convention may be eligible for a rebate of the GST/HST where they have paid tax in respect of any of the following:

1. a supply of property or services relating to the convention made by a registrant that is the organizer of the convention
2. a supply, made by a registrant that is not the organizer of the convention, of property or services that are acquired for consumption, use, or supply by the sponsor as related convention supplies or of the convention facility
3. property that is imported or brought into a participating province by the sponsor, or an imported taxable supply (as defined in section 217) of property or services that are acquired by the sponsor, for consumption, use, or supply by the sponsor as related convention supplies

62. Under section 217, an imported taxable supply includes a supply of intangible personal property, services, or certain tangible personal property for use otherwise than exclusively in commercial activities.

63. Under paragraphs 252.4(1)(d) and (e), the Minister shall, subject to subsection 252.4(2) and on the application of the sponsor filed within one year after the day the convention ends, pay a rebate to the sponsor.

64. Under paragraph 252.4(1)(d), in the case of a supply made by an organizer, a sponsor is entitled to claim a rebate equal to the total of the following:

• the GST/HST paid by the sponsor calculated on that part of the consideration for the supply that is reasonably attributable to the convention facility or related convention supplies other than property or services that are food or beverages or are supplied under a contract for catering
• 50% of the GST/HST paid by the sponsor calculated on that part of the consideration for the supply that is reasonably attributable to related convention supplies that are food or beverages or are supplied under a contract for catering

65. Sometimes, an organizer charges the sponsor an all-inclusive price to organize a convention. Items that are not eligible for the rebate may be included in the consideration. The sponsor determines the rebate using the amount of the GST/HST calculated on that part of the consideration that is reasonably attributable to the items that qualify, and then claims a rebate on those items.

66. Under paragraph 252.4(1)(e), in any other case (where a supply is not made by an organizer), the sponsor is entitled to claim a rebate equal to the total of the following:

• if the property or service is food or beverages or is supplied under a contract for catering, 50% of the GST/HST paid by the sponsor in respect of the supply or importation of the property or service, or the bringing into a participating province of the property
• in any other case, the GST/HST paid by the sponsor in respect of the supply or importation of the property or service, or the bringing into a participating province of the property

Rebate to non-registered organizers of foreign conventions

67. Under subsection 252.4(3), if a non-registered organizer of a foreign convention pays the GST/HST in respect of a supply of the convention facility or a supply, importation, or bringing into a participating province of related convention supplies, the Minister shall, on the application of the organizer filed within one year after the convention ends, pay a rebate to the organizer equal to the total of the following:

1. the GST/HST paid by the organizer calculated on that part of the consideration for the supply or on that part of the value of property that is reasonably attributable to the convention facility or related convention supplies other than property or services that are food or beverages or are supplied under a contract for catering
2. 50% of the GST/HST paid by the organizer calculated on that part of the consideration for the supply or on that part of the value of property that is reasonably attributable to related convention supplies that are food or beverages or are supplied under a contract for catering

Rebate for accommodation

68. A sponsor or non-registered organizer of a foreign convention may be entitled to claim a rebate of the GST/HST paid in respect of short term and/or camping accommodation acquired exclusively for consumption, use, or supply in connection with a convention (where the accommodation is a related convention supply). However, non-resident attendees to a convention in Canada are not entitled to claim a rebate for the GST/HST paid on short term and/or camping accommodation.

69. The following definitions under subsection 252.4(0.1) apply to section 252.4:

• camping accommodation means "a campsite at a recreational trailer park or campground (other than a campsite included in the definition short-term accommodation in subsection 123(1) or included in that part of a tour package that is not the taxable portion, as defined in subsection 163(3), of the tour package) that is supplied by way of lease, licence or similar arrangement for the purpose of its occupancy by an individual as a place of residence or lodging, if the period throughout which the individual is given continuous occupancy of the campsite is less than one month. It includes water, electricity and waste disposal services, or the right to their use, if they are accessed by means of an outlet or hook-up at the campsite and are supplied with the campsite"
• tour package "has the same meaning as in subsection 163(3), but does not include a tour package that includes a convention facility or related convention supplies"

Rebate procedures for sponsors and non-registered organizers of foreign conventions

70. Sponsors and non-registered organizers of foreign conventions may obtain the rebate amount to which they are entitled by either of the following methods:

• filing a rebate application with the CRA
• being paid or credited an amount on account of the rebate by eligible suppliers

Filing a rebate application

71. Under subsection 262(1), sponsors and non-registered organizers of foreign conventions can apply to the CRA for a rebate of the GST/HST using Form GST386, Rebate Application for Conventions.

72. Under subsections 252.4(1) and (3), the rebate application must be filed within one year after the day the foreign convention ends. For example, if the convention ended on September 16, 2023, the application must be received by the CRA no later than September 16, 2024.

73. Under subsection 262(2), when a sponsor or a non-registered organizer files a rebate application with the CRA, only one rebate application can be filed for each foreign convention.

74. The sponsor or non-registered organizer of a foreign convention is required to provide all of the following documents with their application:

• a convention agenda, itinerary, or event program
• copies of invoices or receipts, showing the GST/HST paid
• a complete hotel folio

75. The documents must prove that the sponsor or non-registered organizer has paid the GST/HST on the supplies. An invoice that only indicates the tax payable (but not paid) is not sufficient. The CRA will deny any rebate if the sponsor or non-registered organizer does not provide the required documents with the rebate application.

Rebate paid or credited by eligible suppliers

76. Certain registrant suppliers (hereafter referred to as eligible suppliers in this memorandum) may pay to, or credit in favour of, a sponsor or non-registered organizer of a foreign convention an amount on account of a rebate. The amount that can be paid or credited is equal to the amount to which the sponsor or non-registered organizer would be entitled under subsection 252.4(1) or (3), as the case may be, if the sponsor or organizer had paid the GST/HST to the supplier and had filed a rebate application with the CRA.

Rebate amount paid or credited by eligible supplier - organizer

77. A registrant organizer of a foreign convention may pay to, or credit in favour of, a sponsor an amount on account of a rebate under subsection 252.4(1) in respect of the supply of the convention facility and related convention supplies made by the organizer.

Rebate amount paid or credited by eligible supplier - operator of convention facility

78. An operator of a convention facility that is not the organizer of a foreign convention may pay to, or credit in favour of, a sponsor or a non-registered organizer of the convention an amount on account of a rebate to which the sponsor or organizer would have been entitled under subsections 252.4(1) or (3) in respect of a supply of the convention facility made by the operator.

Rebate amount paid or credited by eligible supplier - supplier of accommodation

79. A registrant supplier of short-term or camping accommodation that is not the organizer of a foreign convention may pay to, or credit in favour of, a sponsor or a non-registered organizer of the convention an amount on account of a rebate to which the sponsor or organizer would have been entitled under subsections 252.4(1) or (3) in respect of a supply of the accommodation made by the supplier.

80. Sponsors or non-registered organizers of foreign conventions that are paid or credited an amount on account of a rebate by an eligible supplier cannot claim the amount, or any part of it, by filing a rebate application with the CRA. However, if they are paid or credited an amount on account of a rebate, and they have other related convention supplies that qualify for a rebate and for which they were not paid or credited, they may file a rebate application for these qualifying items with the CRA.

81. Under subsections 252.4(2) and (4), sponsors or non-registered organizers of foreign conventions that are paid or credited an amount on account of a rebate by an eligible supplier are not entitled to any rebate, refund, or remission in respect of the GST/HST to which the amount relates.

Documentary evidence

82. When an eligible supplier pays to, or credits in favour of, a sponsor or non-registered organizer of a foreign convention an amount on account of a rebate, the supplier is required under subsection 286(1) to keep documentary evidence that the sponsor or organizer would be entitled to the rebate if the sponsor or organizer had paid the GST/HST and filed a rebate application with the CRA.

83. Before paying or crediting an amount on account of a rebate, an eligible supplier should verify that the sponsor or non-registered organizer satisfies the eligibility conditions. Appendix 2 provides an example of a form that could be used to confirm that the formal meeting or assembly for which an eligible supplier is paying or crediting an amount on account of a rebate is a foreign convention. This is not a prescribed form under the ETA. The CRA will determine at the time of audit whether an eligible supplier could have paid or credited an amount on account of a rebate and claimed a deduction in determining its net tax.

Supplier may claim deduction

84. Under subsections 252.4(2) and (4) an eligible supplier that pays or credits an amount on account of a rebate to a sponsor or non-registered organizer of a foreign convention may claim a deduction under subsection 234(2) in respect of the amount paid or credited (refer to paragraphs 77 to 79 of this memorandum).

85. Where an eligible supplier pays to, or credits in favour of, a sponsor or non-registered organizer of a foreign convention an amount on account of a rebate, the eligible supplier may deduct the amount in determining its net tax for either of the following reporting periods:

• the reporting period that includes the particular day which is, for the purposes of claiming the deduction, the later of the following:
  • the last day on which any GST/HST to which the rebate relates became payable
  • the day on which the amount is paid or credited
• any subsequent reporting period of the eligible supplier for which a return is filed within one year after this particular day

86. The eligible supplier may claim the deduction on its GST/HST return.

Filing of information

87. Under subsection 252.4(5), an eligible supplier that pays or credits an amount on account of a rebate and claims a deduction under subsection 234(2) in respect of the amount paid or credited is required to file Form GST106, Information on Claims Paid or Credited for Foreign Conventions. The form must be filed with the CRA on or before the day which the eligible supplier's GST/HST return for the reporting period in which the amount is deducted is required to be filed.

88. There are consequences for not filing the information form, which depend on whether the eligible supplier files the information form before or after a particular day.

89. For the purposes of subsection 234(2.1), the particular day means the earlier of either:

• the day that is four years after the day on or before which the eligible supplier was required under section 238 to file a return for the reporting period in which the supplier claimed the deduction
• the day stipulated by the CRA in a demand to file the information

90. Under paragraph 234(2.1)(a), where an eligible supplier files the information form on a day (referred to as the filing day) that is after the day on or before which the eligible supplier is required to file its return for the reporting period in which the supplier claimed the deduction under subsection 234(2) in respect of the amount paid or credited and before the particular day, the supplier must, in determining the net tax for the reporting period that includes the filing day, add an amount equal to interest, at the prescribed rate, on the amount claimed as a deduction computed for the period:

• beginning on the day on or before which the eligible supplier was required to file the prescribed information under subsection 252.4(5)
• ending on the filing day

91. Under paragraph 234(2.1)(b), where an eligible supplier fails to file the information form before the particular day, the supplier must, in determining the net tax for the reporting period that includes the particular day, add an amount equal to the total of the amount claimed as a deduction under subsection 234(2) and interest, at the prescribed rate, on that amount computed for the period:

• beginning on the day on or before which the eligible supplier was required to file the information under subsection 252.4(5)
• ending on the day on or before which the supplier is required under section 238 to file a return for the reporting period that includes the particular day

92. The amount required under paragraphs 234(2.1)(a) and (b) to be added in determining the eligible supplier's net tax must be included on the supplier's GST/HST return. The amount must also be reported on Form GST106.

93. For more information on interest rates, go to prescribed interest rates.

Liability of eligible supplier and sponsor or non-registered organizer

94. Under paragraph 252.5(c), when, at a particular time, an eligible supplier pays or credits an amount on account of a rebate, the eligible supplier and the sponsor or non-registered organizer are jointly and severally, or solidarily, liable to pay to the Receiver General under section 264 the amount or excess amount, as the case may be, as if it had been paid at the particular time as a rebate under Division VI to the eligible supplier and the sponsor or non-registered organizer, if the eligible supplier knew or ought to have known either of the following:

• the sponsor or non-registered organizer did not satisfy the eligibility condition for claiming the rebate
• the amount paid or credited exceeds the rebate to which the sponsor or non-registered organizer would have been entitled

Liability of sponsor or non-registered organizer

95. Under paragraph 252.5(d), when, at a particular time, an eligible supplier pays or credits an amount on account of a rebate, the sponsor or non-registered organizer is liable to pay to the Receiver General under section 264 the amount or excess amount, as the case may be, as if it had been paid at the particular time to the sponsor or non-registered organizer as a rebate under Division VI if, at that time the eligible supplier did not know, and could not reasonably be expected to have known either of the following:

• the sponsor or non-registered organizer did not satisfy the eligibility condition for claiming the rebate
• the amount paid or credited exceeds the rebate to which the sponsor or non-registered organizer would have been entitled

Sponsors of domestic conventions

96. As mentioned earlier, a domestic convention is a convention that is not a foreign convention. Sponsors of domestic conventions are subject to special rules with respect to supplies of admissions to non-resident attendees and supplies of real property and related convention supplies to non-resident exhibitors.

Registration required

97. Under subsection 240(2), every person, other than a business registered under the simplified GST/HST, who enters Canada for the purposes of making taxable supplies of admissions in respect of a place of amusement, a seminar, an activity, or an event (such as a convention) is required to be registered for GST/HST purposes and must apply for registration before making any such supplies.

Small supplier provisions do not apply

98. Under subsection 148(3), the small supplier provisions of section 148 do not apply to a business registered under the simplified GST/HST or a non-resident person that makes a supply in Canada of admissions in respect of a place of amusement, a seminar, an activity, or an event (such as a convention) and whose only business carried on in Canada is the making of such supplies.

99. For more information on registration, refer to GST/HST Memoranda 2-5, Non-resident Registration, 2-1, Required Registration, and 2-3, Voluntary Registration. For more information, go to GST/HST for digital economy businesses: Overview.

Supplies of admissions to non-resident attendees

100. A registrant sponsor of a domestic convention must charge the GST/HST on its taxable supplies of admissions to the convention regardless of whether the admission is supplied to a resident of Canada or a non-resident. However, when sponsors make taxable supplies of admissions to non-residents, special rules apply to determine the amount of the GST/HST to be charged to the non-residents. Supplies of admissions by sponsors that are charities or public institutions may be exempt supplies under either Part V.1 or VI of Schedule V and, therefore, not subject to the following rules.

Calculating the GST/HST payable

101. Under subsection 167.2(1), if a sponsor of a convention makes a taxable supply of an admission to the convention to a non-resident person, the following is not included in calculating the GST/HST payable in respect of the supply:

• that portion of the consideration for the admission that is reasonably attributable to the provision of the convention facility or related convention supplies other than property or services that are food or beverages or are supplied under a contract for catering
• 50% of that portion of the consideration for the admission that is reasonably attributable to the provision of related convention supplies that are food or beverages or are supplied under a contract for catering

102. Sponsors of domestic conventions may calculate the amount of the GST/HST to charge non-residents by adding the total costs that are reasonably attributable to the provision of the convention facility and related convention supplies (including only 50% of the costs for food, beverages, and catering services) and then calculating this amount as a percentage of the total convention costs. The percentage is then subtracted from 100% to determine the percentage of the admission that is subject to the GST/HST.

Supplies to exhibitors

103. Under subsection 167.2(2), "where a sponsor of a convention makes a taxable supply by way of lease, licence or similar arrangement to a non-resident person of real property that is acquired by the person exclusively for use as a site for the promotion, at the convention, of property or services supplied by, or of a business of, the person, no tax is payable in respect of that supply to the person or in respect of any supply by the sponsor to the person of property or services that are acquired by the person for consumption or use as related convention supplies in respect of the convention".

104. For information on leases, licences, and similar arrangements, refer to GST/HST Memorandum 19-1.

105. Subsection 167.2(2) applies even if the sponsor and/or the non-resident exhibitor are registrants.

106. Related convention supplies for a non-resident exhibitor do not include property or services that are food or beverages or supplied under a contract for catering. As these supplies are excluded from the definition of related convention supplies when they are made to an exhibitor, they are also excluded from the provisions of subsection 167.2(2). Consequently, the sponsor of a domestic convention must charge and account for the GST/HST when the sponsor makes those supplies to an exhibitor.

Rebate for non-resident exhibitors

107. Sponsors of conventions do not charge the GST/HST on supplies of exhibition space and related convention supplies to non-resident exhibitors.

108. A non-resident exhibitor is required to pay the GST/HST on exhibition space and related convention supplies rented or purchased from a registrant that is not the sponsor of the convention. However, the exhibitor may be entitled to a rebate for the GST/HST paid on such supplies.

109. Under section 252.3, where a non-registered non-resident person (an exhibitor) is the recipient of a supply by way of lease, licence, or similar arrangement of real property that is acquired by the person exclusively for use as a site for the promotion, at a convention, of property or services supplied by, or a business of, the person, the person is entitled to a rebate equal to the sum of the following:

• the GST/HST paid by the person in respect of that supply
• the GST/HST paid by the person in respect of a supply to the person of related convention supplies in respect of the convention

110. Property or services that are food or beverages or are supplied under a contract for catering are not related convention supplies when supplied to exhibitors.

111. A non-registered non-resident exhibitor may apply for the rebate in respect of domestic and foreign conventions by using Form GST386. Registrant suppliers cannot pay to, or credit in favour of, an exhibitor an amount on account of a rebate.

112. Under section 252.3, the rebate application must be filed within one year after the day the convention ends. For example, if the convention ended on September 16, 2023, the application must be received by the CRA no later than September 16, 2024.

113. Under subsection 262(2), a non-registered non-resident exhibitor may only file one rebate application per convention.

114. When a non-registered non-resident exhibitor files a rebate application with the CRA, all of the following documents must be provided with the application:

• a convention agenda, itinerary, or event program
• copies of invoices or receipts, showing the GST/HST paid
• a document showing that the exhibition space was rented, even if there was no GST/HST payable on that supply
• if a rebate is available for short term accommodation, the complete hotel folio

115. The documents must prove that the exhibitor paid the GST/HST on the supplies. An invoice that only indicates the tax payable (but not paid) is not sufficient. The CRA will deny any rebate if the exhibitor does not provide the required documents with the rebate application.

Rebate for an amount paid by an exhibitor's employee

116. A non-registered non-resident exhibitor that is a company or an organization may send its employees to a convention. In some cases, employees are required to pay for their travel expenses, including the hotel accommodation, and then may be reimbursed for some or all of these expenses by their employer. As the exhibitor would not be the recipient of the supplies, the conditions for claiming a rebate for expenses incurred by the employee in relation to the convention would not be met. However, if the conditions set out in subsection 175(1) are met, the non-registered non-resident exhibitor may be entitled to a rebate.

Reimbursements

117. Under subsection 175(1), when an employee of an employer acquires property or a service for consumption or use in relation to activities of the employer, the employee pays the GST/HST payable in respect of the supplies, and the employer reimburses an amount to the employee in respect of the property or service, the following rules apply:

• the employer is deemed to have received a supply of the property or service
• any consumption or use of the property or service by the employee is deemed to be consumption or use by the employer, and not the employee
• the employer is deemed to have paid, at the time the reimbursement is paid, the GST/HST in respect of the supply

Amount deemed paid by the exhibitor

118. Under subsection 175(1), the amount of the GST/HST the employer is deemed to have paid is equal to the amount determined by the formula:

A × B

where:

119. For the purposes of subsection 175(1), a reimbursement is a payment made by one person to repay another person for amounts spent. An amount constitutes a reimbursement where the amount is fully accounted for by the person receiving the payment (evidenced by supporting vouchers or records). For more information on reimbursements, refer to GST/HST Memorandum 9-4, Reimbursements.

120. As a result of the deeming provisions of subsection 175(1), a non-registered non-resident exhibitor that reimburses an employee for expenses incurred in relation to a convention is deemed to have paid the GST/HST. Consequently, if the other conditions for claiming a rebate under section 252.3 are met, the exhibitor may claim a rebate in respect of the GST/HST paid on supplies used exclusively in connection with a convention.

121. Since subsection 175(1) deems the GST/HST to be paid at the time the exhibitor reimburses the employee, the exhibitor meets the requirements for claiming a rebate only after the reimbursement of expenses.

122. In addition to the documents listed in paragraph 114 of this memorandum, the non-registered non-resident exhibitor is required to provide evidence of all of the following:

• the person is an employee of the exhibitor
• the amounts paid by the employee were for supplies used exclusively in connection with a convention
• the exhibitor has reimbursed the employee for all or part of the amounts paid by the employee, including the GST/HST

123. Appendix 3 provides an example of a letter that could be used to prove that the conditions of subsection 175(1) have been met. The letter should be signed by the employee as well as an authorized representative of the exhibitor (a manager or controller) who has the authority to sign on behalf of the exhibitor.

Tax paid in error

124. Under subsections 261(1) and (3), where a person has paid an amount that was on account of the GST/HST or the amount was taken into account as the GST/HST in circumstances where the amount was not payable or remittable by the person, whether by mistake or otherwise, the CRA will provide a rebate of the amount subject to certain restrictions.

125. If a sponsor of a domestic convention charges an amount as or on account of the GST/HST in error, the non-resident attendee or exhibitor can ask the sponsor to refund or credit the amount. If the non-resident attendee or exhibitor is not able to obtain a refund or credit from the sponsor, they may apply to the CRA for a rebate of tax paid in error using Form GST189, General Application for GST/HST Rebates, under reason code 1C. The non-resident attendee or exhibitor would be required to apply for the rebate within two years after the day the amount was paid. The same would be true if an attendee or exhibitor of a foreign convention is charged the GST/HST in error by the sponsor.

Appendix 1 – Examples of related convention supplies

The following are examples of related convention supplies:

Accommodation

• hotel accommodation for use by the sponsor, organizer, or exhibitor; or supplied to attendees as part of the admission

Audio-visual

• audio, audio–visual, and video services; and equipment and labour associated with technical services

Business equipment

• computers, photocopiers, desks, and chairs

Convention materials

• banners, flags, signs, papers, shields, floral arrangements, stand decorations, backdrops and other decorations, and office supplies

Convention show services

• equipment and labour to install furnishing and items (carpet, tables, chairs, exhibit booths, waste receptacles, decorator plants, draping, banners, displays, and signs)

Destination management services

• local planning, management, and co-ordination services in organizing elements of the convention for the incoming organization

Electrical services

• equipment and labour for electrical services

Food, beverages, and catering services (limited to 50% of the GST/HST paid)

• food, beverages, and catering services related to the convention, including any gratuities charged
  
  Note: A gratuity charge is a service charge that is applied to the price of the catered food and beverages and forms part of the consideration for the supply. A gratuity charge is a related convention supply only where the food, beverages, or catering services to which they relate also qualify as related convention supplies. In addition, any gratuity or tip that is given voluntarily (not charged) is not part of the consideration for a related convention supply and is not eligible for the rebate.
  
  Note: Food, beverages, and catering services, including any gratuity charge, are not related convention supplies when supplied to exhibitors.

Memorabilia

• lapel buttons, billfolds, key chains, pens, pencils, corsages, T-shirts, scarves, mugs, jewelry, badges, and similar promotional items

Moving services

• labour and equipment to deliver exhibit materials to an assigned space, including the storage of crates during the convention

On-site services

• personnel for on-site work (the staffing of the registration desk, photographic services, and security services)

Printed matter

• identification badges
• information bulletins, on-site newsletters, booklets, programs, and memoranda relating to a convention or to products displayed at a convention

Professional services

• customs brokerage, legal, accounting, and freight forwarders' services

Simultaneous interpretation equipment

• simultaneous interpretation and audio-related equipment and labour

Speakers and educational seminars

• facilitators and course materials

Telecommunications

• telephone, facsimile, video, audio, or computer link-ups

Translators and interpreters

• individuals who translate and interpret the languages being used

Transportation services between venues

• chartered group transportation services used solely to transport attendees of the convention between any of the convention facilities, places of lodging for the attendees, or transportation terminals (airport shuttle services)

Appendix 2 – Confirmation of foreign convention

This is an example of a form that could be used to confirm that the event for which an eligible supplier is paying or crediting a rebate amount is a foreign convention. The CRA will determine at the time of audit whether an eligible supplier could have paid or credited a rebate amount to a sponsor or a non-registered organizer of a foreign convention and claimed a deduction from its net tax.

Appendix 3 – Confirmation that the exhibitor reimbursed an employee for expenses incurred in relation to a convention

This is an example of a letter that could be used to confirm that a non-registered non-resident exhibitor has reimbursed an employee for all or part of the amounts paid by an employee of the exhibitor, including the GST/HST, for supplies used exclusively in connection with a convention.

Further information